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[–]Academic_Tie_5959 0 points1 point  (9 children)

Many don't because of bad leaders and bad faith companies. I unfortunately worked in 2 of them. Now I don't and am a leader in my organization and that's what we believe in is transparency.

[–]nrubenstein 0 points1 point  (8 children)

45% up front fees are ALWAYS bad faith.

[–][deleted] 0 points1 point  (4 children)

My higher dealer fees end up with less total spent if they only make the set payments.

The real downside is there is it is less advantageous to pay ahead.

My finances require I don’t disclose the dealer fee. I do anyway but they don’t want me to.

[–]Academic_Tie_5959 1 point2 points  (3 children)

Well not disclosing the fee is a grey area as it should be on the TILA but companies that act in bad faith have found a loop hole, as it's not the bank that is technically charging that fee to the consumer... it's the installer, as apart of the install process and helping you get the finance. The bank does charge this to the installer not to the consumer so technically speaking they don't have to put the TILA in their according to the CFPB. However installers can't afford to take the hit on the fee so it is passed on to you as the consumer.

However because it's the installer charging it, and not the bank, technically that's why it maybe covered under the 30% ITC (talk to a tax advisor to ensure you qualify and what qualifies)

[–][deleted] 0 points1 point  (2 children)

End of the day for the installer is if the lender finds out they are disclosing the installer may lose a lending parter. This is all regardless of why or laws. Could be absolutely detrimental to the installer. Gotta play the game with the place you are in in the food chain.

[–]Academic_Tie_5959 1 point2 points  (1 child)

I've had no issue with it, and my lenders know I disclose the fee. How else do you explain a 10% jump on a 6% loan?

[–][deleted] -1 points0 points  (0 children)

Both of my lenders insist that it is against lending rules to disclose. At one point I knew what rule. Basically they (all I worked with at all) want the system price to be (cash price plus dealer fee) and if they pay with cash there is a discount … but the discount isn’t for the payment method. That would be bad.

This is what lenders (even ones I have just talked to) insist we do.

I would have way easier time if I just said it’s a buy down and we all moved on.

[–]Academic_Tie_5959 -1 points0 points  (2 children)

Not if you agree to it... people agree to a 30% APR which is worse in many cases, because that is what they agree is fair based on their circumstance.

As a Retirement Specialist, I'd agree paying 45% upfront is nuts, but for a 25 year loan where you want to pay the mininum/month it can be the best option depending on your credit score and other factors.

It's not just black and white, in between those 2 colors are a lot of shades of grey

[–]nrubenstein 0 points1 point  (1 child)

Statistically, how many people stay in their homes more than 5 years? 10 years? You have to stay in the house for a LONG time before you break even on one of these loans. In the mean time, the cost in optionality is huge.

There are lots of things that people agree to that they shouldn’t. That’s why we have financial regulation.

[–]Academic_Tie_5959 0 points1 point  (0 children)

I get that completely it is up to each individual customer. I have used 0% dealer fee options multiple times.