GM Financing - Early refinance

econometrics · May 14, 2019

25 minutes ago, Chris walker said:

That ^^^ is exactly right. I have almost no debt and the idea 8% interest is an honest interest rate is ridiculous. I will take their $1,500 incentive and refinance. Whats sad is that I would just keep it if it was within a point or two of a normal loan and let them make back some of their money....They are counting on people being lazy.

Yeah, I got 5.9% with an 815. I thought that was high, sheesh. I’m paying mine off in a month or two so it didn’t matter to much.

Bob2C · June 11, 2019

I bought an 2018 Tahoe. I have excellent credit and they gave me a 6.69% interest rate. I took all the gm rebates totaling 10k + farm bureau discount + first responder discount + dealer discount for a total of 18k off sticker. I bought the truck on a Monday and by Friday I paid the loan off with the payoff adding 100 bucks due to interest. Could not believe with that interest rate it would have been over 12k in interest for the life of the loan.. Are they crazy??? I'll use the system.. More money in my pocket...

scdaren · June 11, 2019

I bought a Chrysler Pacifica for my wife last week. Dealer offered such steep discounts, they were clearly trying to make their money from financing, extended warranties, etc. I got rebates for Chrysler financing at 6.61%. I was not taking any of their expensive add-ons. The sales manager tried to tell me I needed to make at least 4 payments to Chrysler. I asked him to show me where on the paperwork it said that. Of course he couldn’t, it’s literally preprinted on the California forms that there is no penalty for early payoff. He straight up said, “come on, you need to let us make money off this somehow.” No I don’t.

Edited June 11, 2019 by scdaren

Bob2C · June 11, 2019

Exactly. Documents state no prepayment penalty. If they wanted to keep us they should give us a reasonable interest rate but he’ll no at over 6%. I found the truck I wanted online and negotiated everything over text. Traveled 400 miles to get it. There were no surprises when I showed up. Finance guy had all paperwork ready to go. He did not pressure me for any other add ons. In his office 10 min signing paperwork. Honestly this was the best experience I had buying a car. I will never negotiate a car in a dealership. All online and search wide. Heck I was willing to travel to Oklahoma but it wasn’t worth it after airfare etc coming from Virginia. So I feel I got a fair deal and better yet not paying all that interest to GM. But in the end the House(dealership) always wins. They have to make money. It just a matter of how much I am willing to let them make off me.

Wiggums · June 11, 2019

I was going to make 3 or 4 payments then pay off my loan but the finance guy pissed me off by trying to strong arm me into buying worthless shit so I paid it off before the first payment.

My credit's 840 and I was able to get 3.99% from GM or 2.49% from my credit union. That was two months ago.

I think it's illegal for dealerships to impose prepayment penalty in several states. I'm almost sure California is one of them.

duquephart · June 14, 2019

On 6/11/2019 at 9:53 AM, Wiggums said:

I was going to make 3 or 4 payments then pay off my loan but the finance guy pissed me off by trying to strong arm me into buying worthless shit so I paid it off before the first payment.

My credit's 840 and I was able to get 3.99% from GM or 2.49% from my credit union. That was two months ago.

I think it's illegal for dealerships to impose prepayment penalty in several states. I'm almost sure California is one of them.

Dealerships don't impose anything, they just arrange the loan.

Philipgonzales3 · June 14, 2019

My financing through GM financial is 5.24% at 75 Months. My credit union shows a range of 4.75% - 15.50% based on credit score.

Is this worth it for me to look into? I used a quick payment calculator and it shows my payment would only be $10 less a month if I got the 4.75% rate.

scdaren · June 14, 2019

9 minutes ago, Philipgonzales3 said:

My financing through GM financial is 5.24% at 75 Months. My credit union shows a range of 4.75% - 15.50% based on credit score.

Is this worth it for me to look into? I used a quick payment calculator and it shows my payment would only be $10 less a month if I got the 4.75% rate.

I think it would be worth looking into a new credit union. Yours is not competitive. A CU auto loan with good credit should be in the 3% range.

Philipgonzales3 · June 14, 2019

28 minutes ago, scdaren said:

I think it would be worth looking into a new credit union. Yours is not competitive. A CU auto loan with good credit should be in the 3% range.

Hnmm, best I've seen so far is 3.75% at 72 months. After 72 months the ones I've seen all jump up to above 4.5% after 72 months. I could refinance for 72 months and pay like 3$ less than I am paying now for 76 months. Not sure if that is good deal or not lol.

NewRado · June 14, 2019

Have a credit score well over 850 and was only offered a 7.5% over 72 months with GM. Took it for the incentives and just finished refinancing at a 3.75% rate before the first payment was due to GM. Once I set up autopay the 3.75% rate will drop to 3.5%. Definitely worth shopping around.

scdaren · June 14, 2019

1 hour ago, Philipgonzales3 said:

Hnmm, best I've seen so far is 3.75% at 72 months. After 72 months the ones I've seen all jump up to above 4.5% after 72 months. I could refinance for 72 months and pay like 3$ less than I am paying now for 76 months. Not sure if that is good deal or not lol.

Yeah it would be a little higher over 72 months. Here in central California, I use two credit unions, one is at 3.99 for 84 months, and the other is at 3.49. I actually just bought a car for my wife a couple weeks ago and am going to refi into one of the credit unions, and my guy there told me to wait until July 1st because they'll be lowering their rates, I'm not sure how much.

Wiggums · June 15, 2019

On 6/14/2019 at 4:34 AM, duquephart said:

Dealerships don't impose anything, they just arrange the loan.

Actually, finance guys (or the dealership) get commission out of GMAC loans. He was the one who told me to make a few payments then switch over. I didn't make any instead.

duquephart · June 15, 2019

3 minutes ago, Wiggums said:

Actually, finance guys (or the dealership) get commission out of GMAC loans. He was the one who told me to make a few payments then switch over. I didn't make any instead.

Indeed. They "sell" the loan and get a spiff of some sort. Every kid on the corner knows that. It's in their interest for you to keep the loan and hence their interest in you doing so. But, as I said, they have nothing to do with the nuts and bolts of the loan.

scdaren · June 16, 2019

Just bought a Chrysler and got a rebate for using their financing. The sales manager said I just needed to make at least 4 payments with them. When I made a point of confirming there was no prepayment penalty and that I had to do no such thing, he literally said, “Come on, you have to let us make at least some money on this deal!” They had discounted the van very heavily, I think relying on financing and other add-ons to make a profit.

JD214 · June 16, 2019

They are allowed to mark the interest up a maximum of 2% . If you balk at the payment or you say you can get a better rate they have that 2% to help them get it done. They get a bonus for each loan they get bought and they also get the money from every thing above the agreed upon loan purchase price. Thats why volume dealers may lose money pin the front end they rely on finance to make the money on the back end through warranty and financing through their banks. The rebates also help to get people to finance through the dealer versus their own bank because the rebates are lost if not financed with GM Financial.

Dealers make so much money its insane. they get bonuses form GM bases on selling a certain amount of vehicles each month. They get bonuses from banks for loans. I saw a dealer in Dallas get $400k for a quarter because they met the projections. Thats why it really is best to shop at volume dealers if all you care about is price. They give them away at a loss sometimes because the money is coming regardless. Plus they have service department printing money.

Its amazing how many chevy dealers are in the Dallas area and how many of them are moving units.