This is a straw man. We all agree that legally, one is allowed to pay the loan off early. The question is: do you lie to the dealer and say that you're going to

This is a straw man. We all agree that legally, one is allowed to pay the loan off early. The question is: do you lie to the dealer and say that you're going to finance, when you're not really going to finance? I once got a long-term mortgage and paid it off in full within two months. The contract of course allowed me to do this without penalty. But in this case I told the underwriter that I would be doing exactly this. They were still happy to underwrite my loan. Personally, I would rather tell the lender the truth in this instance. If they don't want my business as a result, then I want to know this information, because it affects my purchasing decision.