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Why am I charged a processing fee for a car loan?
It's bad enough that I have to pay tax on my financed car. What's with the processing fee for the loan?
Johnny Puckett · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Many lenders charge some sort of fee to compensate for the cost of processing a loan, based on the reasoning that processing an application takes a fair amount of time, paperwork, and math on their part. Depending on the lender, a processing fee can be a one-time payment or a recurring expense based on a percentage of the loan.
“
View full answer
- Gregory R.
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