You pay these penalties to your lender whenever you break the negotiated terms of your loan contract. (moneysense.ca)
As Gunnar Tomasson has observed: «The Creditary View of Money holds that what ultimately gives money value is the Debtor's ability to honor the terms of his Loan Contract.» (michael-hudson.com)
Besides, with dealerships, the terms of the loan contract always hide extra fees that are not included in advertisements like insurance fees, administrative fees, closing costs, etc.. (badcreditloanservices.com)