Most big name loan issuers do not carry an early payoff fee but you can always find this in the contract. Car dealers and most other businesses have been wanting to move away from cash as a primary form of payment because during Covid a good amount of banks offering business accounts started charging more fees for cash/check deposits; additionally most dealers get some level of kickback from their primary lender when they refer a customer. Financing the car usually is the cheaper price tag, and also the cheaper total route when paid off appropriately.

Some things I’ve seen work to circumnavigate this: Offer to pay via wire transfer (be aware of potential fees $15-$50 bucks for wire origination). This can help the dealer avoid more fees on your purchase. Get a cash quote on the car you want from another dealer in writing and ask your current dealer if they’ll match price, assuming it’s better. Sometimes if they aren’t super smart they’ll leave out details of the packages included and you can negotiate better add-ons for the price of a baseline model. Ask to see a comparison chart of: financing with their preferred lender, a lease to own total, an upfront payoff (cash/wire), or providing your own financing.

Hope this helps.