I recently purchased a new car at a dealership. I had enough cash to pay in full, but the dealer gave me a discount in exchange for financing. I was told that would I need to make a minimum of 6 or 12 payments (over the course of 6-12 months) before paying off the loan entirely. It is in my best interest to pay it off (or refinance it) as soon as possible, since the interest rate on the loan is quite high.
I subsequently called up the car company lender (not the dealer), and was told I can payoff my loan anytime (no minimum number of payments required). My contract papers also do not say I need to make a min. number of payments. I reached out to the dealership for comment but have yet to hear back.
If I payoff my loan now, can the dealer send me a bill later, for the amount of the discount, say? It is also not clear to me what the business model of the dealer is like - I assume the dealer gets some incentives if I keep my loan for some period of time, but from whom would the dealer gets this benefit? (It's not the car company lender, as the lender confirmed.)