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Whenever a financial institution approves a bank auto loan, then lenders at that institution normally make a number of assumptions. The bank also expects the potential car buyer to recognize the bank's ability to approve or deny any car loan.
When a bank gives a nod of approval for a car loan, then the bank assumes that the borrower is going to purchase either a new car, or one that is less than one year old. When lenders at a bank agree to finance a bank auto loan, they realize that the rates and terms on that loan are not "written in stone." The bank reserves the right to change the rates and terms without prior notice to the borrower of the loan.
When a bank agrees to provide a customer with a car loan, then the bank assumes that the customer has an excellent credit history. When a bank determines the rates for a bank auto loan, it assumes that the borrower will make automatic payments on that loan. The bank assumes that the borrower has an account at the bank that will grant the car loan.
Should a borrower not bank at that institution, and should the borrower not plan on making automatic payments, that borrower can expect to be charged a higher interest rate.
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