How is it ok for dealerships to charge more from customer to customer?

Is it legal for a dealer to charge if I have my own financing? A friend of mine got an incredible deal on a car at a local car dealer using their financing but the interest rate was not all that great. I qualified for a better interest rate through my bank so I went to the dealer and asked for the same deal, minus financing. They said because I have my own financing the price would be higher.

Answer provided by
Johnny Puckett
Answered on Jun 25, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
“Dealerships can charge whoever whatever they want. There’s nothing that states it as an illegal practice.
If you don’t like how dealerships conduct their business, find someone that will treat you the way that you want to be treated as a customer and buy from them instead. (This is generally good life advice, as well.)
It may seem like your friend got a good deal on a car financing through the dealer, but they are likely paying more in hidden financing fees than they would save on the asking price for their new car. It’s a bait and switch.
It’s also possible your friend qualified for a special promotion based on their down payment

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