13nick13

i'll reiterate... GM FINANCIAL GOT MAD AT DEALERSHIPS FOR TELLING YOU ALL TO DITCH THE LOAN IN 3 MONTHS... how does that not indicate dealerships trying to do you a solid by telling you how to avoid unnecessary interest... You are only mad that they got to make some money and you lost $200 of your $1500. I've never gotten a call from a customer who was told they could not refinance at a better rate after 6 months. Not ONE SINGLE TIME. I am all about transparency. I understand that not all dealers are and that can leave a bad taste in your mouth. But what i'm telling you is mathematically sound. If you refinance in 6 months, you still pay about $1300 less. The only thing that could change that is if you absolutely drive the wheels off of it, or the car market takes a huge sh## and the banks raise interest rates. but most people are willing to bet 1300 on the stability of the american auto industry for 6 months.

i understand that concern too. My answer to that is that i work with 1 bank out of 32 that has higher interest rates for current and 1 year prior model years. If you are smart, you will refinance with a credit union and they almost always advertise their rates on their websites. All the credit unions I work with have the same rates for new and used cars if they are current or last years model year vehicles. I do understand what your concern is, but unless you drive 30,000 miles in 6 months, thats not going to be an issue.

if you want the rebate, they reserve the right to set your interest rate. if you don't want to hassle with refinancing, don't take the $1500 rebate. An honest dealer would explain to you why they need to wait 6 months. I always do. I straight up tell people they will charge us back and I show them how much the extra interest pays. i admit that I don't tell them when their rate is marked up, but i give them clear instructions on how and when to refinance. You can be as difficult about it as you want and be on here beating your chest against dealerships, but i will prove you wrong mathematically EVERY TIME. I do this every day. I know this better than you do. And i'm not trying to offend you. You seem old school, and I deal with that all the time. I just want you to understand that unless you don't refinance, the dealership is doing you a solid telling you to refinance the loan. I've never had a customer be mad at me for making money when they get to keep 1300 of their 1500 rebate and i'm honest with them about where the money goes.

See what you are doing is saying things without doing the math. You are not correct that you would pay less money. If you refinance in 6 months, you pay less money PERIOD. tell me the selling price of your truck and i'll do the math for you. i'm not being rude. i just want you to understand.

I can settle this for you all once and for all. I'm a finance manager at a Chevy dealer in Michigan. This is EXACTLY what is happening with your rebates and rates. First off, if you qualify for GM Financials A1 tier of credit, the interest rate they give the dealership is 4.99%. What the dealership does, is mark that 4.99% up a maximum of 2 points to 6.99%. The finance department gets to profit from the increase of rate from 4.99% to 6.99% but ONLY if the customer doesn't refinance within a certain amount of time. That amount of time USED to be 3 months. When GM Financial noticed that dealers were signing up all these 850 credit scores at 6.99% and telling the customer to refi after 3 months, they changed their policy to 6 months. If the customer refinances before that 6 month period, the dealership gets charged back the amount they made by increasing the rate. NOW BEFORE YOU FREAK OUT... 2 things.... #1.... try to remember we all go to work to make money... #2... THE DEALERSHIP IS HELPING YOU TOO! this is important... if the rebate is $1500 to go through gm financial, and you have to keep the loan for 6 months, you only are going to pay like $150-$200 MORE in interest in that 6 months than you would have at a better rate at a different bank. So in 6 months, say you pay $200 more in interest... well the rebate was $1500, so you STILL SAVED $1300 from the rebate! So when a dealership tells you to refinance in 6 months, that's them telling you how to get out of that loan in a way that allows the dealership to keep their kickback. MAIN POINT... do the math... if you want to deal with refinancing after 6 months, it makes sense... just DON'T FORGET TO REFINANCE.... also... keep the loan 6 months... i promise you the dealership hooked u up by telling you to refinance the loan.

what was your rate through gm financial? the rate the dealer could have given you was 4.99. usually they mark that up to make money and ask you to finance for 6 months so gm financial pays them their kickback. its a good setup for the customer and the dealer. you just have to remember to refinance. Sounds shitty for the dealer to do that, but in the end, they make like 1500 bucks, you get a 1000 discount, and if you refinance in 6 months, you will have only paid about 200 bucks in interest. so you still make out 800 bucks ahead or 1300 bucks ahead (idk if that rebate was 1000 or 1500). AND the dealer got to make a little money. The only real loser is GM financial which is ok by me. hahahahha

You aren't wrong. The only thing I would add is that all that profit is NOT at the dealer level. A brand new Silverado at GMS just with the rebates everyone gets, the dealer is making about 3000 on a 1500 Silverado. On a cruze, the dealer profit is usually under 1000 and that's saying that the customer doesn't negotiate past the GM employee price and the rebates they qualify for. If i were a salesman i would expect to make about 300 on a straight GM employee deal. Usually they make less because that price is negotiated. But that wont always work because Chevy wont let dealers discount past GM employee price for half of the model year. We just started being able to go under GM employee in the last month or so on trucks. For context, I am a finance manager at a chevy store in michigan.

Why do you have to make me regret not looking for a 6.2!?!?!!? I bet that thing RIPS at the dunes! what part of michigan are you in?

When i was looking for a truck it HAD TO BE a summit white Z71 and while i'm making the payment... it might as well be a full crew cab! I am drooling at all your sweet trucks though my doods! I wish I could afford a 2500!!!!