Submission Number: 00102 

Received: 3/26/2012 10:16:13 PM
Commenter:  Agarwal
Organization: 
State: Alabama

Agency: Federal Trade Commission
Initiative: Public Roundtables: Protecting Consumers in the Sale and Leasing of Motor Vehicles; Project No. P104811
Attachments: No Attachments
Submission Text
Please consider monitoring car dealers to keep them from telling their clients financing vehichles that they can "pay off their new or used car financing agreements early with no penalty" when in fact the dealers have already front-loaded ALL the finance charges for the entire loan period into the sales contract. Consumers have no financial incentive to pay off their loans early with such "front loaded" car loans. Dealers shouldn't be allowed to build all the finance charges for the entire loan period into in the sales contract. (If consumers are aware their dealer could do this, they would have an incentive to shop around for a better loan deal at a different dealer or perhaps with a better loan originator.