Can a dealership charge extra money for financing a car instead of paying cash?

"Is it normal to be charged a fee for not paying cash at a dealership? I was going to finance a car from a dealership. When I was reading the contract, I saw that a $1,000 fee had been added to it, and the salesman told me it was because I wasn't paying cash."

“What probably happened is that the dealer or manufacturer had a special that incentivized a cash payment.
You’ve probably heard of bonus cash and things like that at dealerships. However, some of these deals are only good if you pay cash for the car.
Think of it as a discount. Because you’re financing the vehicle, you don’t get to take the discount, which can then be added onto the final price of your new car.
It’s standard practice, so if you can pay cash, it’s sometimes the better option.”
Eric Schad
Answered on Jul 28, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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