is that legal?

What you report, smells.

I think the dealer wants to milk you for another $1,200.

If I were in your position, I wouldn't pay it.

That presumes, you have already signed the purchase contracts and loan contracts.

If it wasn't on the contracts you signed, you don't owe it.

 

I wouldn't pay either.
The dealer likely has the option to cancel the contract within 30 days or so. Review your contact for a cancellation clause.

 

If the bank doesn't demand it, as I said, they're trying to scam you.


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I agree with the other responders. If it isn't in the contract & the bank is not aware of it, don't pay it.

 

I concur. The interest rate is likely so high form the bank, they cannot soak you there. Unless the additional money is being taken off the total purchase price already in effect, to reduce the banks risk, it is a fake charge. Tell them you are sorry, you will need to return the truck for a full refund as you cannot afford the purchase price to go up.

 

Actually, I reconsidered my advice. Advise them you like the contract you and they agreed to, so you are sticking to it.

 

Your contract explains the terms under which they may cancel the contract. Your failure to pay may activate one of those clauses if they choose.
If they cancel your contract and you return the vehicle they will owe you a refund minus a usage for the time you had the vehicle.