F&I
Reserve (Finance Reserve)
Finance reserve is the markup on a customer's interest rate that the dealership earns when arranging financing through a lender — a major component of F&I gross.
What it means on the floor
Lenders quote a 'buy rate' to the dealer. The dealer can mark it up (within compliance limits) to a 'sell rate.' The difference becomes reserve income. Reserve is regulated for fairness and disclosure under federal compliance rules.
Related terms
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