GM Financing - Early refinance

duquephart · April 4, 2019

41 minutes ago, GN2018 said:

Wow, now I feel like a fool. My dealer told me four months. I could have paid cash but I got the $1500 incentive to finance. I’m right now at four months. Wish I would have asked about this or seen this thread sooner.

For those of you looking at your financing paperwork, I think you’re looking in the wrong place. The language would be in paperwork associated with the incentive. This is where I really feel foolish. I just took the word of the dealers finance guy. I should have asked to see the four months in writing. Lesson learned. Find it, or ask, to see their claim that you have to wait in writing.

Live and learn. Your most valuable lesson, assuming you grasped it, is that anyone at a car dealer cannot be relied upon for so much as the time of day.

PS ----- How much of that $1500 incentive vanished in those four months?

Edited April 4, 2019 by duquephart

Wiggums · April 4, 2019

My salesman told me that, "Just make a one month payment and then pay it off." That dealership in San Diego was really honest and upfront with everything. We couldn't agree on the price of my trade-in so they suggested CarMax and I got more from CarMax.

The salesman also said there's no prepayment penalty at all.

That's in California. I believe it's the law.

GN2018 · April 4, 2019

8 hours ago, duquephart said:

Live and learn. Your most valuable lesson, assuming you grasped it, is that anyone at a car dealer cannot be relied upon for so much as the time of day.

PS ----- How much of that $1500 incentive vanished in those four months?

PS - About half. Still worth it, but could have had it all. Yes, live and learn. That lesson hurt a bit though.

relevante · April 5, 2019

10 hours ago, Daverado said:

If you plan to refinance elsewhere, then you should subtract the interest cost from the alternative bank to find out the "extra" cost of GM financing over that 6 months.

If you planned to pay cash but finance just to get that incentive then your math is solid.

Absolutely. Also, my dealer was totally transparent about the fact that I could pay it off right away, but that it would screw them out of their rebate, and they were really good otherwise too, so I’m going to work with them. But since I was considering paying cash, I’m just going to make a big payment ASAP and knock out almost all of the loan, leaving the few payments they said they need (6, they said). It won’t cost much at all in interest that way and they said as long as the loan exists in any form for that length of time, they get their kickback and everyone’s happy. I’m not sure there’s a similar way to work if you’re planning to refi, but for a cash deal this should work pretty well for all.

GN2018 · April 5, 2019

Yeah, that’s what I should have done. Made four large payments or even most of it on the first payment so I wouldn’t have paid as much interest.

Wintersun · April 6, 2019

Nearly always it is better to check with the local banks and see who is promoting auto loans and then negotiate a cash price with the dealer. The bank can pre-approve a dollar amount and then cut you the check for the dealer in a day's time.

Dealers get a kick back on any financing (or extended warranty) they sell customers. But sometimes a manufacturer will provide very low financing or even zero interest if they have two many days inventory already produced and sitting on the lots.

Wiggums · April 6, 2019

I would not do it that way because sometimes Chevrolet offers a $1,000 cash rebate if you finance through them.. then a month later, go back to your credit union or pay it off in cash.

duquephart · April 7, 2019

8 hours ago, Wintersun said:

Nearly always it is better to check with the local banks and see who is promoting auto loans and then negotiate a cash price with the dealer. The bank can pre-approve a dollar amount and then cut you the check for the dealer in a day's time.

Dealers get a kick back on any financing (or extended warranty) they sell customers. But sometimes a manufacturer will provide very low financing or even zero interest if they have two many days inventory already produced and sitting on the lots.

You never want to "negotiate a cash price with the dealer." All deals are cash deals to the dealer and playing that card is stupid. You are likely to get your best deal if he thinks he is going to cash in on a financing spiff as well as everything else.

Jackwards · April 7, 2019

Bought my trail boss today. Used GMF. Specifically asked the finance guy about this topic for the thread’s sake. Guy laughed and said, “Makes no difference to us. Get the registration and refi the thing right away. It’ll save you some money.”

End of story.

Edited April 7, 2019 by Jackwards

diyer2 · April 7, 2019

You never want to "negotiate a cash price with the dealer." All deals are cash deals to the dealer and playing that card is stupid. You are likely to get your best deal if he thinks he is going to cash in on a financing spiff as well as everything else.

True IMO.

When I bought my used truck they brought up financing. I told them a later discussion.

Negotiated a price, then told them cash deal. They were not happy.

I was told by friends that were car salesmen to never bring up trade ins or cash buys.

Negotiate the cost of the purchased vehicle, then the trade value. This stops them from playing with the numbers.

You have to remember they are trained at this and do it every day to maximize profit.

duquephart · April 7, 2019

47 minutes ago, diyer2 said:

You never want to "negotiate a cash price with the dealer." All deals are cash deals to the dealer and playing that card is stupid. You are likely to get your best deal if he thinks he is going to cash in on a financing spiff as well as everything else.

True IMO.

When I bought my used truck they brought up financing. I told them a later discussion.

Negotiated a price, then told them cash deal. They were not happy.

I was told by friends that were car salesmen to never bring up trade ins or cash buys.

Negotiate the cost of the purchased vehicle, then the trade value. This stops them from playing with the numbers.

You have to remember they are trained at this and do it every day to maximize profit.

It is amazing that this needs to be brought up time after time on boards as sophisticated as this. The first, foremost, cardinal, etc. rule in price negotiations at a car dealer is to keep all transactions separate. The phrase "we'll talk about step two (three, four, etc.) after we complete step one" is your best friend. Within fifteen minutes of arriving at a dealership the salesman knows way too much about the typical dope: what he wants, what he is trading, what his ideal payment is, his time frame, etc. Don't be that guy. This is called "qualifying" and is standard procedure ----- they are way better at selling than you are at buying so you need to eliminate as much of their advantage as possible.

UGADawgs · April 8, 2019

When does the first paperwork arrive with your account number? I purchased two weeks ago and GMF just showed up on my bureaus today. I haven't received anything from them in the mail yet.

relevante · April 8, 2019

1 hour ago, UGADawgs said:

When does the first paperwork arrive with your account number? I purchased two weeks ago and GMF just showed up on my bureaus today. I haven't received anything from them in the mail yet.

If you call the customer service number on the GMF website the automated system gives the option to look up your account by SSN or account number. I tried my SSN but nothing yet. Spoke with a rep and she said give it 2-2.5 weeks. So yours might be up by now.

Wiggums · April 8, 2019

Mine came within 2 weeks. Will make the first payment in a couple weeks from now then pay it off.

UGADawgs · April 8, 2019

8 hours ago, relevante said:

If you call the customer service number on the GMF website the automated system gives the option to look up your account by SSN or account number. I tried my SSN but nothing yet. Spoke with a rep and she said give it 2-2.5 weeks. So yours might be up by now.

I called them and used last four of SSN and got account #, etc. Thanks!

10day payoff balance is already $260 higher from interest in just two weeks. Crazy!

Edited April 8, 2019 by UGADawgs