Ohio auto dealerships have limited input on the final interest rate you pay on an auto loan, but they do have some leeway to adjust rates for their benefit. When you finance a car through a dealership, they often work with a network of lenders to find you a loan. The lender sets a base interest rate (also known as the "buy rate") based on your creditworthiness, loan amount, and other factors.
 

Dealerships can indeed mark up this interest rate to increase their profits. The markup is usually capped, and a common cap is around 2 percentage points, though this can vary based on the dealership, the lender, and regulations. This practice is part of what's referred to as the "back-end" profit of a car deal, which includes financing, insurance products, extended warranties, and other add-ons.

However, it's essential to note that not all dealerships operate with high markups, and some may choose to offer competitive financing rates to facilitate a sale or maintain customer satisfaction. Furthermore, regulations and market competition can also influence how much a dealership marks up a loan's APR.
 

Consumers can often negotiate the interest rate on their auto loan, especially if they are aware of their credit score and the average rates available from direct lenders. It's also beneficial for buyers to get pre-approved for an auto loan from a bank or credit union before going to the dealership, as this can provide leverage in negotiations and ensure they receive a fair interest rate.