Some financiers include a dealer fee as part of a loan. The dealer fee is specified as a percentage amount that is added onto the loan principal, increasing the amount that the customer has to pay down.
The equation is as follows:
loan principal = system cost / (1-dealer fee)
Example: a $20,000 loan with a 5% dealer fee would have a starting principal of $21,052.63
Add Dealer Fee to System Cost
This checkbox indicates if the dealer fee amount should be included in the customer’s incentive and tax-basis calculations in addition to being used for the loan principal.