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ReddSaidFredd t1_iy5le3c wrote

>there’s incentives to finance through the dealership that make it make sense

Incentives for the dealer, yes. What are the incentives for you paying an above-market interest rate?

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Sad_Cockroach_6864 OP t1_iy5n1fe wrote

Further discounts on an already discounted truck. Bringing the taxable value of the vehicle down. If I can in fact pay off the 10k in first month like I’m wondering about, then I will basically pay nothing in interest while reaping the benefits of the financial incentives for financing through the dealership

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rnelsonee t1_iy5o89r wrote

Yup, that works. Sometimes they'll offer incentives and expect to make more money via interest. But there's nothing wrong with paying it all down up front. Some loans have prepayment penalties, but it's not common. Check your agreement though to be sure.

$10k at 7.39% means you pay $10,000 × 7.39%/12 = $62 in interest in that first month, so $62 total if you pay it off by that first due date.

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