GM Financing - Early refinance

relevante · April 15, 2019

Just now, econometrics said:

I got 5.4% on 60 months with GMAC. I was going to pay cash for my 2019 RST, but took the $1500 rebate.

Local dealer told me to wait 4 months, then pay it off. My only concern would be to somehow lose the rebate by paying it off sooner.

My dealer said the payment schedule/balance doesn't matter as long as the loan remains open for the required time, so if you have the cash, you can pay off all but the last 4 payments right now, save almost all the interest and keep the dealer happy.

UGADawgs · April 15, 2019

48 minutes ago, econometrics said:

I got 5.4% on 60 months with GMAC. I was going to pay cash for my 2019 RST, but took the $1500 rebate.

Local dealer told me to wait 4 months, then pay it off. My only concern would be to somehow lose the rebate by paying it off sooner.

You won't lose the rebate and neither will they. GMF will confirm it if you call and ask them.

UGADawgs · April 16, 2019

I was waiting for my license plate to be in hand and for all the drama of issues with the dealer I purchased from to be done. I will never buy from them again and have four other Chevy dealers in town to work with for service. First payment to GMF is due May 7th at 7.29%. That's insulting with over a 800 credit score. I just refinanced today with local credit union at 2.49%. ??

duquephart · April 16, 2019

33 minutes ago, UGADawgs said:

I was waiting for my license plate to be in hand and for all the drama of issues with the dealer I purchased from to be done. I will never buy from them again and have four other Chevy dealers in town to work with for service. First payment to GMF is due May 7th at 7.29%. That's insulting with over a 800 credit score. I just refinanced today with local credit union at 2.49%. ??

They set the hook with the rebate/incentive. Skinning you alive with the interest rate comes later.

UGADawgs · April 17, 2019

I just saved $800 in interest for just the first four months. $400 vs $1,200. ?

50k 7.29 72mos 4mos interest $1,200

Total interest life of loan $11,887

vs

50k 2.49 48mos 4mos interest $400

Total interest life of loan $2,603

Had the dealer treated me right and not been a complete ?-show of errors and inconveniences, it may have been different.

Still plan to have it paid off in less than two years, and the lower rate will help accelerate payoff.

The above numbers show how debt is horrible and interest is only your friend when you're the investor, not the debtor.

cire0309 · April 17, 2019

I just saved $800 in interest for just the first four months. $400 vs $1,200. [emoji91]

50k 7.29 72mos 4mos interest $1,200
Total interest life of loan $11,887
vs
50k 2.49 48mos 4mos interest $400
Total interest life of loan $2,603

Had the dealer treated me right and not been a complete [emoji90]-show of errors and inconveniences, it may have been different.

Still plan to have it paid off in less than two years, and the lower rate will help accelerate payoff.

The above numbers show how debt is horrible and interest is only your friend when you're the investor, not the debtor.

Although you did change the term of the original loan, the effect only primarily increased the principal payment in the 4 month period.

50k @ 2.49% for 72 months interest would’ve been $406 (vs. $402 for 48 mos.)
But the total interest paid would be increased to roughly $3880

Interesting

Sent from my iPad using Tapatalk

UGADawgs · April 17, 2019

This is a great resource for seeing amortization schedules:

https://www.amortization-calc.com/auto-car-loan-calculator/

UGADawgs · April 26, 2019

GMF shows account paid in full and closed. Woot! ?? Never made a payment.

Edited April 26, 2019 by UGADawgs

lebag335 · April 26, 2019

26 minutes ago, UGADawgs said:

GMF shows account paid in full and closed. Woot! ?? Never made a payment.

Yep. I did the same. Paid and closed.

bwoodsmn · April 26, 2019

My Dealer had no issue with early refinancing - at closing they clearly pointed out that there was no penalty for closing the GMF loan early. Went from 5.9 to 3.7 with a drop of ~ 28/month over 72 months - $2000 in interest savings, on top of the $1500 credit by using GMF financing in the first place.

Edited April 26, 2019 by bwoodsmn

scdaren · May 1, 2019

I waited all of 8 days to refi with my credit union. Went from a 5.2% to a 2.85%. Dropped my payment by $58.

And here's the even better thing about my credit union (EECU) - GAP insurance is only $250, and I got a 5 year bumper to bumper 125,000 mile warranty for $840. Dealership couldn't even get close to that. Good warranty too, I've been using my CU's warranties for years, and they have always covered.

carlosh · May 2, 2019

I waited all of 8 days to refi with my credit union. Went from a 5.2% to a 2.85%. Dropped my payment by $58.

And here's the even better thing about my credit union (EECU) - GAP insurance is only $250, and I got a 5 year bumper to bumper 125,000 mile warranty for $840. Dealership couldn't even get close to that. Good warranty too, I've been using my CU's warranties for years, and they have always covered.

How did you get your gm account number to pay off?

Sent from my SM-G965U using Tapatalk

scdaren · May 2, 2019

Just now, carlosh said:

How did you get your gm account number to pay off?

Sent from my SM-G965U using Tapatalk

I didn't have to. I called them with my CU loan agent on the line, and used my social to get the 10 day payoff. Then my CU used the VIN to pay off the loan.

carlosh · May 2, 2019

I didn't have to. I called them with my CU loan agent on the line, and used my social to get the 10 day payoff. Then my CU used the VIN to pay off the loan.

Got ya! Tanks! I'll try that too.

Sent from my SM-G965U using Tapatalk

ShamrockShooter · May 4, 2019

Made one payment and refinanced yesterday at my credit union yesterday. My rep at credit union said she had done 38 gm truck refis in the month of April alone.

Dropped my payment $70 a month from the gm crap rate.

Sent from my Pixel 2 using Tapatalk