Finance
Some banks charge a certain penalty in the case you decide to prepay the loan amount. Prepayment may happen in the case your finances improve and you decide to pay back all the outstanding loan amount. This results in the bank losing the interest amount that it could have earned. So, most of banks charge a certain prepayment penalty.
The Necessary Dealership does Special Finance, but not consciously. The F&I manager knows something about sub-prime, and can get a deal approved with some effort. His pay plan typically does not compensate him sub-prime, so he pays little attention to it.
Auto finance rates are not as high as they can not be paid back. With the loans and financial assistance,many consumers have been able to become the proud owners of cars that once many Indians could only have dreamt of. The nearly 10% annual growth of the auto industry has been possible due to the direct and indirect help from various financiers in India.
