The tell
A dealer fee is a financing charge that may be added to the amount borrowed. Matching cash and financed prices do not prove that a fee is present or absent. Ask for an itemized explanation: any fee included in the loan becomes part of what you repay.
What to ask
Ask for the cash price, the financed amount, the dealer fee in dollars, and the interest rate. If the representative cannot separate those, you do not yet have a complete quote.
Why it happens
A lower advertised rate can come with a higher amount borrowed. Ask how the lender’s terms affect both the financed price and the payment schedule. The useful comparison is the full cost of each option over the period you expect to keep the loan.
Calculate the price difference, then ask what explains it
The CFPB’s 2024 report describes dealer fees included in some solar loan balances. A loan’s advertised interest rate alone does not explain its total cost. CFPB: Solar Financing (U.S. market report, August 2024; not a current tax-eligibility source)
Illustrative example: the same installation is quoted at $24,000 cash and $30,000 financed. The $6,000 difference is 25% of the cash price. It is not proof that all $6,000 is a dealer fee: ask for an itemized reconciliation and verify that both quotes cover the same work. Interest over the loan term is a separate cost.
- Ask for a written cash quote for exactly the same scope.
- Compare the financed principal, APR, term, fees, and total payments.
- Ask whether any future payment assumes a lump-sum prepayment.
- Compare another financing option using total cost, not just its monthly payment.