GM Financing - Early refinance

scdaren · May 9, 2019

You guys know why the dealer is telling you to wait 3 or 4 months, even though you don't have to?

Because unless you put down a decent down payment, at 3 or 4 months out the refi bank is not going to give you a refi based on the sticker price of the vehicle, they are going to treat it as used and look at blue book. And if they do that, your truck will no longer be worth enough to refi the high interest GM note you got (which the dealer is likely getting a piece of).

Wiggums · May 9, 2019

30 minutes ago, scdaren said:

You guys know why the dealer is telling you to wait 3 or 4 months, even though you don't have to?

Because unless you put down a decent down payment, at 3 or 4 months out the refi bank is not going to give you a refi based on the sticker price of the vehicle, they are going to treat it as used and look at blue book. And if they do that, your truck will no longer be worth enough to refi the high interest GM note you got (which the dealer is likely getting a piece of).

Not my credit union. They treat any new loans (within 2 months) as a new car loan where no credit check will be performed.

If it's more than 2 months but less than 12 months, they may run a credit check. But, as long as it's less than 12 months, it will be given the new car finance rate. No cashing out.

scdaren · May 9, 2019

3 minutes ago, Wiggums said:

Not my credit union. They treat any new loans (within 2 months) as a new car loan where no credit check will be performed.

If it's more than 2 months but less than 12 months, they may run a credit check. But, as long as it's less than 12 months, it will be given the new car finance rate. No cashing out.

I'm not talking about the finance rate (mine treats 2016 and newer as new for rate purposes). I'm talking about the value they assign to the collateral (your truck). Generally, on a brand new car, the bank or CU will finance up to 120% of the MSRP, to allow for sticker price plus things like taxes, registration, warranty, etc. However, at some point they no longer treat it as brand new, and instead value the car based on the blue book value, which will be substantially less than the MSRP. That blue book price may be $10k below the sticker for the vehicle, and thus your car may not have enough value as collateral for the bank to give you a loan for the amount you owe GM Financial. Of course, if you had a trade in or down payment that brings down your loan value enough, then it won't matter whether the bank is valuing the collateral based on sticker or bluebook, and it will be a non-issue.

Wiggums · May 9, 2019

19 minutes ago, scdaren said:

I'm not talking about the finance rate (mine treats 2016 and newer as new for rate purposes). I'm talking about the value they assign to the collateral (your truck). Generally, on a brand new car, the bank or CU will finance up to 120% of the MSRP, to allow for sticker price plus things like taxes, registration, warranty, etc. However, at some point they no longer treat it as brand new, and instead value the car based on the blue book value, which will be substantially less than the MSRP. That blue book price may be $10k below the sticker for the vehicle, and thus your car may not have enough value as collateral for the bank to give you a loan for the amount you owe GM Financial. Of course, if you had a trade in or down payment that brings down your loan value enough, then it won't matter whether the bank is valuing the collateral based on sticker or bluebook, and it will be a non-issue.

Right, that's why I said my credit union treats any refinance on a new car as a new car finance provided that it was bought new less than 12 months ago. If it was within 2 months, no credit check, they will assume whatever loan was done the first time. If it was more than 12 months OR if it was refinanced again with the same credit union, then it would be a used car loan subject to blue book values.

jwhjr · May 10, 2019

Just refinanced mine after making only 1 payment. I would have done it sooner, but needed the title before refinancing. The day the title came in the mail I finalized the refinance. I was also told to wait 3-4 payments by the dealership so they don't lose whatever incentive, but with the crazy 7.24% GM rate that's not my problem. I got a 2.74% rate through my credit union and don't feel bad in the slightest ditching the GM loan. I have near perfect credit and it's ridiculous the rates GM has just to get the incentive. Cut 2 more years off of the term, and plan to pay it off 2 years early so all good in my book.

Tritipnbeer · May 10, 2019

Took the GM financing for the incentive. Paid mine off with cash on the first payment. Title came in the mail 2 weeks later. No hate mail or complaints from GM or the dealer. Easy peezy.

UGADawgs · May 13, 2019

Finally got my payoff letter today. Yeet!

Chris walker · May 14, 2019

I swear these dealers are so shady...I bought my truck on Saturday. I was approved for GM financing for an 8% rate with a credit score in the 800s. They told I had to keep the loan for 6 payments, not 90 days. I asked him to show it to me where it says I had to keep the loan half a year term (much less 90 days) in the contract, he couldnt.

I then purchased a warranty, they moved some stuff around and lowered my rate from 7% to 5%....I asked how they could lower my rate if this was a GM incentive with GM financing. They said they found a lower rate with GM financing - RIGHT. I will be calling and refinancing the moment I get the paper work...

Outside of the finance stuff I feel like I got a great truck and a truly fantastic price.

.

Edited May 14, 2019 by Chris walker

scdaren · May 14, 2019

2 minutes ago, Chris walker said:

I swear these dealers are so shady...I bought my truck on Saturday. I was approved for GM financing for an 8% rate with an 800 credit score. They told I had to keep it for 6 payment, not 90 days. I asked him to show it to me the term limit in his contract, he couldnt.

I then purchased a warranty, they moved some stuff around and lowered my rate from 7% to 5%....I asked how they could lower my rate if this was a GM incentive with GM financing. They said they found a lower rate with GM financing - RIGHT. I will be calling and refinancing the moment I get the paper work...

Outside of the finance stuff I feel like I got a great truck and a truly fantastic price.

.

The dealer was almost certainly padding your rate to get a cut from GM. I also have an 800 score, and got a 5.3% rate from them. So that's why they can cut it. Take your GM finance rebates and run over to your local credit union to refi it and save a ton of money. You do not have to wait. I waited 8 days.

Chris walker · May 14, 2019

Just now, scdaren said:

The dealer was almost certainly padding your rate to get a cut from GM. I also have an 800 score, and got a 5.3% rate from them. So that's why they can cut it. Take your GM finance rebates and run over to your local credit union to refi it and save a ton of money. You do not have to wait. I waited 8 days.

Great advice and thats exactly what Im going to do! I need to get the first paper work from the loan in the mail from GM and then Im off like a scalded dog..

scdaren · May 14, 2019

16 minutes ago, Chris walker said:

Great advice and thats exactly what Im going to do! I need to get the first paper work from the loan in the mail from GM and then Im off like a scalded dog..

You don't even need to do that. Just go into your credit union office. I actually did it all on the phone with my CU loan guy. He just dialed up GM Financial with me on the line and had me talk to the them to get my payoff using my social to look up the loan, and he sent in the payoff check using the vehicle's VIN number, which is pretty standard practice. I never did get my account number until later when the GM financial paperwork finally came in.

You are better off doing it sooner than later, then you don't need to worry about whether you need to get in a payment to GM at 30 days before the refi check gets to them.

Edited May 14, 2019 by scdaren

At4Rotation · May 14, 2019

Just purchased a 2019 AT4 this morning. The dealer had two options for financing, local credit union and GM. Credit was 800, local CU was a 4.74% while GM was 6.99%.

Even without the 1000 rebate for GM financing, the CU was cheaper in the long run.

Edit: I called 2 other local CU and they were right at the same as the one the dealer used one was 4.99 and the other was 4.69%.

Edited May 14, 2019 by At4Rotation

econometrics · May 14, 2019

34 minutes ago, Chris walker said:

I swear these dealers are so shady...I bought my truck on Saturday. I was approved for GM financing for an 8% rate with a credit score in the 800s.

That is just SO stupid. 8% with an 800 FICO? Wow. The ONLY reason people finance with GM is for the rebate, and they know it.

scdaren · May 14, 2019

3 minutes ago, At4Rotation said:

Just purchased a 2019 AT4 this morning. The dealer had two options for financing, local credit union and GM. Credit was 800, local CU was a 4.74% while GM was 6.99%.

Even without the 1000 rebate for GM financing, the CU was cheaper in the long run.

Shop around for your own CU financing. Most here in California are under 3%. You can take the GM financing with the rebate, then immediately refi it into a CU, and get the best of both.

Chris walker · May 14, 2019

2 hours ago, econometrics said:

That is just SO stupid. 8% with an 800 FICO? Wow. The ONLY reason people finance with GM is for the rebate, and they know it.

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.