Do car dealers charge fees for dealer-arranged financing?
"Do dealers charge extra fees for financing through them? I want to get financing for my new car, but it's my first time buying. I know that dealers can arrange financing through banks and credit unions."
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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.
“In almost all situations, the dealer will charge a fee that pays them for putting together all the paperwork. This isn’t always a huge fee, but rest assured, you’ll be paying something.
With that said, you can also negotiate when buying a new car with them to get the fee removed. They might balk; they might not.
As with any other type of loan, the more you shop around and the higher the down payment, the better the rate you’ll get and the less fees you’ll pay.”
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