Why is finance trying to mess up my loan?
Hey guys, I’m trying to figure something out. I helped a family member purchase a vehicle who put 20% down with 800+ credit score. Instantly approved by the bank through the dealership. They came back at a 9.19% loan on a 2021 car. I told them that it was unacceptable and that their credit union would give them 5.44% on the same loan. They said they don’t work with that credit union and they would only honor the deal if we did financing with them. Obviously I’m not stupid enough to let anyone pay a 9.19 loan since they are making tons of money on it so I told them no dice. I told them if the best they can offer us is 9.19 I would just have the car refinanced through the credit union. It did not seem to phase them at all. Literally 24hrs later the car was refinanced at 5.44%. I’m a bit confused, we negotiated on the sales price aggressively so I assumed they would make the money on the financing. But if I refinanced right away they didn’t make nothing on the backend. Why would they not try to offer me something closer to 5.44%? I saw their buy rate on the loan was 5.2% so they tried marking it up heavily to make up for the negotiated price. I told them if they got it into the low 6.x we would just keep the loan to avoid the hassle of the refinance and they wouldn’t budge. Did I miscalculare something here?