"Typically, when a car buyer finances a purchase through a dealer, they sign what’s called a retail installment sales contract, or RIC, a transaction in which the consumer agrees to make a fixed number of payments over time, plus interest, for the car. Think of it as a deferred payment plan. In the industry, this is based on the “time-price doctrine,” a principle that says dealers can have consumers pay an increased credit charge in exchange for receiving monthly installments over time, rather than the entire cash price up front. If that sounds like a loan to you, you’re on the right track. It’s unquestionably similar, but New York law has a different set of provisions that govern what’s permissible for RICs. Importantly, usury laws—and thus limits on interest rates—don’t apply. And that’s the catch: New York state law allows auto dealers to set whatever finance charge they want for a RIC, so long as it’s “agreed to by the retail seller and the buyer.” In many cases, buyers don’t even know what they are getting into."