Can the price of a vehicle be increased to cover financing costs in a credit transaction?

In credit transactions, increasing the price of a vehicle specifically to cover financing costs is prohibited. This practice can be viewed as deceptive and could mislead consumers about the true cost of the vehicle.

When financing costs are tied to the selling price of the vehicle, it can obscure the actual financial commitments required by the buyer. Transparency is a key component of fair lending practices; thus, the total cost - including financing - should be clearly communicated to the consumer without manipulation of the vehicle’s price.

In Virginia, as well as under federal regulations, it’s essential that all costs and fees are disclosed separately from the vehicle price so that the buyer can make an informed decision. This promotes fair dealings in the automotive sales industry, ensuring consumers are not surprised by hidden fees or inflated pricing that incorporates financing costs.