Quote:
Originally Posted by pdonk
Maybe, maybe not. When I financed my car, I asked about paying it off early and was told that the monthly payment price was basically the cost of the vehicle, plus financing over the life of the loan divided by the length of load, so there was incentive or savings to pay off early. When I read the agreement, it was pretty clear that the lender got its interest no matter what.
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The commission the dealer receives for selling you a loan is nowhere near the interest paid on the loan. i.e. they're not making $8k on $40k loan, otherwise the bank wouldn't make any money and they have all the risk at that point.
It's closer to a couple hundred.
But yes, they will earn the commission no matter how long you choose to pay it off.
02-01-2024, 02:13 PM
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