Down Payment Assistance Program

duquephart · February 12, 2017

"Does GM financial try to get their money out of you in pre payment penalties and fees?"

That's a question for the F&I guy. If there's no penalty it should be a no-brainer for someone who intends to pay cash anyway.

XSKIER · February 14, 2017

I just toss a down payment to cover the depreciation

I also keep GAP insurance on it So if it gets totaled I will be in a new truck at no cost to me.

Does GAP cover the loan payoff to used truck value gap, or the new truck to used truck gap? What does it cost for the "security" it affords?

XSKIER · February 14, 2017

That's a question for the F&I guy. If there's no penalty it should be a no-brainer for someone who intends to pay cash anyway.

I did a little digging on this today, and found out if I refinance within 6 months the f&i guy will lose his commission. Also, some banks will look at my new truck as a used truck on the refinance. Just trying to avoid 10 hard inquiries in a week. Also found out that a younger dealer that floor plans with GM financial does get some extra incentives to steer the customers to them for retail financing in the form of rebate tags for next month. You know, keep the ball bouncing and all the get go.

BigBadSierra · February 14, 2017

Does GAP cover the loan payoff to used truck value gap, or the new truck to used truck gap? What does it cost for the "security" it affords?

The GAP on my truck covers all of the difference to replace the truck after the insurance payout. So after auto insurance it covers the gap in value to fully replace the truck. So in the end I would still need to get a loan on a new one but would be back to the same situation I was in with no loss to me. It's cost a little extra to have but is good way to protect your self and you finances.

duquephart · February 14, 2017

How does this get to refinancing and gap? The question is whether anyone here has taken advantage of the rebate deal and how it went.

bovineplane · February 15, 2017

Has any one taken the $2000 down payment assistance program yet? I am working a deal on a 16 2500HD reg cab. with lots of rebates, it may be a skinny deal for the dealer, I don't know. However, I think the F&I guy is trying to make a killing on me on the back end. The risk is 36yo married guy, 120k combined income, 799 score. The amount financed will be 31045, for 72mo The offer from GM financial was 5% interest! also The F&I guy offered bank financing written through him, no 2K rebate. Chase came back at 4.2%, Huntington at 4.3%. If any one has taken the $2k rebate, and then sought to pay it off early, Does GM financial try to get their money out of you in pre payment penalties and fees?

You might keep looking. Similar score here and i landed 1.75% through capital one and usaa. I did put 7k down which may have affected my rate. Take the rebate and refi elsewhere. Unless you have a personal relationship with the dealer i wouldnt worry about the commision. They certainly are not selling you a truck at a loss.

Logroller · February 15, 2017

I'm curious about the GM financing/rebate as well.

My concerns are the potential terms of the financing i.e., can you payoff the loan early, is there a prepayment penalty charge, how does Rule 78 apply, is it a pre-computed loan where you have to pay all principle and interest no matter when you pay it off, and other pitfalls leaving with a not so good finance deal.

https://www.consumer.ftc.gov/blog/financing-car-ask-about-pre-payment-penalties

http://www.dmv.org/buy-sell/auto-loans/early-loan-payoff.php

http://m.carsdirect.com/auto-loans/understanding-car-loan-prepayment-penalties

XSKIER · February 15, 2017

You might keep looking. Similar score here and i landed 1.75% through capital one and usaa. I did put 7k down which may have affected my rate. Take the rebate and refi elsewhere. Unless you have a personal relationship with the dealer i wouldnt worry about the commision. They certainly are not selling you a truck at a loss.

How long ago did you score 1.75%? I'm under the impression that interest rates are on the rise? The best offer I have now is 2.99% through "Michigan State Employee's" credit union.

bovineplane · February 16, 2017

How long ago did you score 1.75%? I'm under the impression that interest rates are on the rise? The best offer I have now is 2.99% through "Michigan State Employee's" credit union.

Was mid January. I was approved through usaa for 1.75% at 60 months. Finance guy asked if i would use his bank if he could match or beat. He matched it at capital one. not my favorite bank but was easier than using my own financing i guess.

aaronarf · February 16, 2017

How long ago did you score 1.75%? I'm under the impression that interest rates are on the rise? The best offer I have now is 2.99% through "Michigan State Employee's" credit union.

I financed at 1.74%/60mo in December...shop around! That's seems like a high interest rate for exceptional credit. Haven't been watching rates though.

Was mid January. I was approved through usaa for 1.75% at 60 months. Finance guy asked if i would use his bank if he could match or beat. He matched it at capital one. not my favorite bank but was easier than using my own financing i guess.

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Dnt · February 16, 2017

Wasn't really looking for investment advice. Doing quite well on my own. Just wondering if anyone has done the deak outlined and if there were any pitfalls.

No real downside I did this recently on a new Nissan for my son for college graduation. They took the check for the full payoff on the first payment date no problem and mailed me the title right away.

Do not want to try to give financial advice but I will never borrow money on a depreciating asset like a vehicle. Contrary to what some others have stated if I am going to borrow money (which I am not) it will be on an appreciating asset such as a rental property. Yes I own several rental properties free and clear and they are a GREAT INVESTMENT unlike my new Denali LOL

mouse24 · March 3, 2017

Has any one taken the $2000 down payment assistance program yet? I am working a deal on a 16 2500HD reg cab. with lots of rebates, it may be a skinny deal for the dealer, I don't know. However, I think the F&I guy is trying to make a killing on me on the back end. The risk is 36yo married guy, 120k combined income, 799 score. The amount financed will be 31045, for 72mo The offer from GM financial was 5% interest! also The F&I guy offered bank financing written through him, no 2K rebate. Chase came back at 4.2%, Huntington at 4.3%. If any one has taken the $2k rebate, and then sought to pay it off early, Does GM financial try to get their money out of you in pre payment penalties and fees?

My dealer TOLD me that we were just going to use GM for their $2000 off. He told me to make 3-4 payments and then refi. the bank he steered me to is offering 2.99% whether new or used. He also told me that there were banks that would still treat the truck as new if it had less than 6000 miles and was from the same calendar year.

duquephart · March 4, 2017

My dealer TOLD me that we were just going to use GM for their $2000 off. He told me to make 3-4 payments and then refi. the bank he steered me to is offering 2.99% whether new or used. He also told me that there were banks that would still treat the truck as new if it had less than 6000 miles and was from the same calendar year.

They like you to make three payments because they then get their spiff for arranging financing. No reason for you to not pay off or re-fi immediately though. Or, so I'm told.

XSKIER · March 7, 2017

How does this get to refinancing and gap? The question is whether anyone here has taken advantage of the rebate deal and how it went.

I did not take advantage of the GM down payment assistance. I settled for the dealer arranged credit union financing. It was .25% lower than any I could find without moving my accounts and direct deposits to another bank. For now I am ok with the deal, buyers remorse hasn't set in yet...