Prepayment penalties are rare outside of subprime/pay-and-go loans. When I worked at Ford Credit the max dealer markup on financing was 2%, and the dealer got

Prepayment penalties are rare outside of subprime/pay-and-go loans. When I worked at Ford Credit the max dealer markup on financing was 2%, and the dealer got their commission on the rate markup up front. Taking a crappy interest rate and prepaying is a sound negotiation tactic because it is the financing company that takes the hit.