GM Financing - Early refinance

[rah7777777]

I NEVER made a payment to GM. Got my 4 or 5k in incentives (and a 7% rate!!) and refinanced about 2 weeks later with a credit union at 2.74%. 

 

I ended up not paying any payments at all for almost the first 3 months I had the truck. 

 

GM can kiss my ass with there 7% rate. And thats with an 805 credit score. But I should note, I didnt talk them down any on it as I knew I was refinancing asap. 

[ShamrockShooter]

It's basically like a mail in rebate. They know x number of people won't bother.

To me it is just a bad customer experience and I hope GM quits doing it.

It doesn't even seem as though offering someone bloated financing with a rebate should be legal.

It might be 7 % apr but the first month you will pay about 35% in interest which will graduly taper down to 1% by the last payment of the term. So if you make 3 payments on a $40k 6 year loan that's about $730 in interest.

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[duquephart]

Dealers get a spiff (for writing/originating/selling the loan) once the three month mark is reached. If they say you "have" to keep the loan for at least anything they are lying. Big surprise. Take the rebates and pay off the loan on the way home.

[Wiggums]

My salesman said to make payment for one month then refinance. California law restricts prepayment penalty.

[UGADawgs]

Read your sales agreement!

 

 

[ShamrockShooter]

Read your sales agreement!
 
 

Must be different in your state. Mine doesn't say that.

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[UGADawgs]

40 minutes ago, ShamrockShooter said:

Must be different in your state. Mine doesn't say that.

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Florida

[ShamrockShooter]

Florida

Then might be the first time I say NY is better than Florida...

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[dtnel78]

Pay a lawyer $100-$150 for his time and make sure you're legal and pay it off. Legal fees are tax deductible. If you have a great credit score and they can't give you incentives and a good rate tell them to give you the rebates and that you'll find your own rate. Don't let them know about the finding your own rate until the deals done so they can't change things.

My brother in law gets the 0% and full rebates all the time but he's got the money to pay cash if he chooses. I can say I wish I was in his shoes. Yukon Denali like $82k and he says "I'll take it" and they go prep it. Must be nice I think at times.

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[JD214]

45 days to keep rebates and incentives

[Thejet07]

I just called my credit union and they gave me a rate of 2.59 for 60 months. I’m in ny so I’m calling gm financial to see what they say about paying it off


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[Thejet07]

Scratch that waiting. Just got off the phone with gmfinancial and they said no penalties and no unpaid finance charges if I wanted to refinance and payoff. It’s just the payoff amount that’s due. Looks like I’m refinancing ASAP. I’m in NY btw.


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[SierraAT4]

Yeah, my dealership told me 4 payments....but I just called GM financial and they said I can do it any time without penalty. I asked if the dealership gets penalized, and he couldn't really answer the question. Sorry dealership, I appreciate you, but we're talking several hundred dollars, when I know they made money on my truck.

[Smitty]

5 hours ago, dtnel78 said:

Pay a lawyer $100-$150 for his time and make sure you're legal and pay it off. Legal fees are tax deductible. If you have a great credit score and they can't give you incentives and a good rate tell them to give you the rebates and that you'll find your own rate. Don't let them know about the finding your own rate until the deals done so they can't change things.

My brother in law gets the 0% and full rebates all the time but he's got the money to pay cash if he chooses. I can say I wish I was in his shoes. Yukon Denali like $82k and he says "I'll take it" and they go prep it. Must be nice I think at times.

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FYI - Legal fees are NOT tax deductible.   hahaha..   I actually asked about that for tax season this year, write offs have changed.  

[eppieguy]

When I bought my Corvette I wanted to pay cash but the dealer asked me to finance so they could get more cash as they sold me the car at their actual cost (Friends with the owner at the time), So I financed and they cut me a check after 90 days for all the interest I paid and I paid off the car. So, with all that being said I guess it's about a 90 day window for the bank to pay the dealer for selling the loan, if you pay off early they lose their $$ for selling the loan.