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.
Two percentages can describe the same financing difference
Use an illustrative $24,000 cash price and $30,000 financed principal for identical work. The difference is $6,000. Relative to the cash price, the increase is $6,000 ÷ $24,000 = 25%. Relative to the financed principal, it is $6,000 ÷ $30,000 = 20%.
Those percentages use different denominators. Neither establishes the lender’s actual dealer-fee formula. Ask whether a quoted percentage is a markup on the cash price or a share of the financed balance, and ask for the dollar amount and an itemized reconciliation.
Compare the payment schedule, not only the first payment
Record the financed principal, APR, loan length and every scheduled payment change. Ask whether the displayed payment assumes you make a future lump-sum payment. If it does, request the schedule both with and without that payment. An incentive estimate does not establish that you will have the money available.
For illustration only, 240 payments of $180 add to $43,200. That simple total excludes any deposit, fees or different payments not included in the schedule. It is not an APR calculation or a prediction of the cost of a specific loan. Use the lender’s disclosures for the actual terms.
| Item | What to request |
|---|---|
| Cash alternative | Exactly the same equipment and work, before incentives |
| Amount financed | Principal and explanation of the difference from cash |
| Loan terms | APR, term, charges and prepayment conditions |
| Payment changes | Amount, timing and assumptions for any later change |
| Total cost | Complete scheduled payments plus separately paid costs |
Keep a financing concern separate from an accusation
A price difference can reflect changed scope, different discounts or financing-related charges. Resolve those possibilities before naming the entire gap a dealer fee. Matching prices do not prove a fee is absent either. The useful result is a documented explanation of the figures you would agree to.
Bring the cash proposal and financing disclosures together when you ask for a review. A monthly payment screenshot alone may not support the financing checks. Solar proposal review and document requirements · Your first pass through a solar quote