GM Financing - Early refinance

ColoradoDaily · April 2, 2019

Has anyone paid off your GM Finance loan early to get a better rate? They told me I had to wait 6 months but believe that is just so they get incentives as I did not sign anything committing to that. My credit union is want to refinance me at half the rate GM gave me!!

19TrailBoss · April 2, 2019

I bought mine at the end of February and I'm currently finishing up the refinance process with my local credit union. Went from 6.49% with GM financial to 3.99%. Probably could have done a little better, but definitely saved some money.

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UGADawgs · April 3, 2019

Just bought mine last week and the sales guy, manager, and finance guy all said please keep for 4 payments, which will be 6mos so they get the rebate. Otherwise they lose it if you refi before that point. It's about $500 in interest difference.

Edited April 3, 2019 by UGADawgs

19TrailBoss · April 3, 2019

Just bought mine last week and the sales guy, manager, and finance guy all said please keep for 4 payments, which will be 6mos so they get the rebate. Otherwise they lose it if you refi before that point. It's about $500 in interest difference.

My guys told me 3 months, but said there was no penalty for sooner. In my opinion GM financial is bringing this on themselves for only offering these insane interest rates.

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UGADawgs · April 3, 2019

I'm waiting for the loan to hit my bureau and also for loan terms to arrive in the mail. I kinda have a hard time thinking GM would go after a dealer 60 days later after the sale for retribution. Has anyone called GM financial or reviewed actual loan terms? The paperwork during the sale stated "there could be early payoff penalties if paid off before 6mos". Extremely vague.

Edited April 3, 2019 by UGADawgs

UGADawgs · April 3, 2019

10 minutes ago, 19TrailBoss said:

My guys told me 3 months, but said there was no penalty for sooner. In my opinion GM financial is bringing this on themselves for only offering these insane interest rates.

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Insane doesn't even describe how obscene their rates are.

Thejet07 · April 3, 2019

I’m in the same boat. I could get a rate @ 2.95% but I don’t want to be penalized. The dealership told me three months to wait. I don’t see anything in my paperwork stating this though and I would really like to not lose this rate.

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19TrailBoss · April 3, 2019

I’m in the same boat. I could get a rate @ 2.95% but I don’t want to be penalized. The dealership told me three months to wait. I don’t see anything in my paperwork stating this though and I would really like to not lose this rate.

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Damn, I would jump on that! You're not going to be penalized, but the dealership may not get their incentive for having someone sign up through GM financial.

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MX86 · April 3, 2019

It’s quite simple. Dealership gets a cut of the interest income that is charged back to the dealer if the loan is paid off in the first 90 days. Most dealers are pricing their inventory back of net/net or close to it and are relying on that income to generate a profit on the deal.

If you feel your dealer gave you a fair deal keep the loan 90 days to help them out so they generate an income.

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UGADawgs · April 3, 2019

So is it 90days from purchase or three payments?

ShotgunZ71 · April 3, 2019

GM Financial is offering 0% in some instances, even on the new T1 trucks. We took the 0% on the new TourX we purchased a couple weeks ago, also. One, it helps get to the vehicle equity if need be and Two, every extra dollar goes directly towards principal.

Thejet07 · April 3, 2019

It’s quite simple. Dealership gets a cut of the interest income that is charged back to the dealer if the loan is paid off in the first 90 days. Most dealers are pricing their inventory back of net/net or close to it and are relying on that income to generate a profit on the deal.

If you feel your dealer gave you a fair deal keep the loan 90 days to help them out so they generate an income.

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That’s what I thought. They get a cut and that’s why they tell you to wait. Looks like all be calling my credit union. Thank you

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MX86 · April 3, 2019

So is it 90days from purchase or three payments?

Most are 90 days from contract date.

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ShamrockShooter · April 3, 2019

I looked over the loan contract from GM and it says nothing about any length of time. Do it as soon as the title arrives. Dont let the dealer give you a sob story about them making money if you keep it for 3 months. I plan to make one payment which should give time for the title to arrive then refinance.

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