GM Financing - Early refinance

[duquephart]

8 hours ago, TXGREEK said:

No, dealerships get their money only at tome of purchase and have absolutely nothing to do with refinancing any vehicle, that’s solely up to you.


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The dealer gets his spiff for selling the loan once the loan has been in force for three months. And not until. You refinance immediately they lose out. That's why they take steps to convince you not to refinance until that much time has elapsed.

[duquephart]

11 hours ago, Donnyb313 said:

My dealership made me sign a document that stated I wouldn't refinance until I've made 4 payments. It says if I do refinance I'll forfeit the 1500$ down payment assistance. Not sure if that means they'd come after me in Civil Court to get their 1500$.. ? 

 

I did get a good price on the truck. 3rd one I've bought from this dealer so I'll probably just wait to refinance. 

 

You have located one of the "dirtball" dealers I referred to.

[lebag335]

I've owned my Trail Boss LT for 2 weeks and yesterday I refinanced it with my local credit union for a MUCH lower rate without making a single payment to GM. Guess I'll wait and see if the dealer balks. I don't recall signing anything saying I couldn't refinance, but rather they asked me to make 3 payments to GM.

Edited April 10, 2019 by lebag335

[duquephart]

1 hour ago, lebag335 said:

I've owned my Trail Boss LT for 2 weeks and yesterday I refinanced it with my local credit union for a MUCH lower rate without making a single payment to GM. Guess I'll wait and see if the dealer balks. I don't recall signing anything saying I couldn't refinance, but rather they asked me to make 3 payments to GM.

 

Did they explain why they'd like you to make 3 payments? 3 payments seems clearly to be the demarcation line. If I was sitting across from a dealer and he was candid enough to outline the scenario and ask me to comply I'd probably be impressed with his honesty and actually give it some thought. For about 28 seconds on my way to my bank.

[lebag335]

So they (the dealership) could benefit from the incentive discounts from GM. I was like, sure! Not really. I'll see what, if anything happens sooner than latter! :-)

[Likarok]

Mine is at 0% so no reason to payoff.

[Z71RST]

37 minutes ago, Likarok said:

Mine is at 0% so no reason to payoff.

Right there with ya. Went and bought the wife a GMC terrain for 0 percent, decided my 16 Silverado could use an update and got a 19 at zero.

 

On a side note, I imagine the 3 payments is so you qualify for some of the rebates that relate to financing with GM Financial. I'd be interested to see if there's any kickback from them once you refinance. I doubt there's anything they can do.

[spizike9]

17 hours ago, Imcrazy said:

Good info, thanks to all for sharing! We're buying a 2018 Equinox Premier this week for my wife and I will be taking the GMF rebate and refinancing with a local credit union in pretty short order..  A side note, because it was a courtesy transporter We're buying a $39k MSRP Equinox for $25,600 with 4500 miles on the ODO.

Many financial institutions will consider a car used with over 5k miles on it. See what yours does because also many times a used car rates are higher than a new car. You’d want to refi right away. 

[eppieguy]

7 hours ago, duquephart said:

 

The dealer gets his spiff for selling the loan once the loan has been in force for three months. And not until. You refinance immediately they lose out. That's why they take steps to convince you not to refinance until that much time has elapsed.

You are correct, my very good friend owned a Chevy dealer and as I said in an earlier post he didn't get paid for selling the loan unless I kept the loan for 90 days, then he would get paid.

[UGADawgs]

The key thing is that neither you nor the dealer lose the $1500 rebate.

 

The dealer loses the referral fee GMF gives them for getting you on the GMF loan that is separate from the $1500. 

 

Unless anyone has any facts that differ.......

[UGADawgs]

Just got off the phone with GMF and they confirmed the above info. 

[Loco-diablo]

My dealer didn’t push GMAC financing at all. It’s only one of many financial institutions they use.
They compared 3 or 4 then showed me the rates and I made the final decision..


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[duquephart]

14 minutes ago, Loco-diablo said:

My dealer didn’t push GMAC financing at all. It’s only one of many financial institutions they use.
They compared 3 or 4 then showed me the rates and I made the final decision..


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Getting a good rate is not the ultimate goal. Getting an additional $1500 discount and then getting a good rate, through refinancing, is the goal. 

Edited April 11, 2019 by duquephart

[Imcrazy]

6 hours ago, spizike9 said:

Many financial institutions will consider a car used with over 5k miles on it. See what yours does because also many times a used car rates are higher than a new car. You’d want to refi right away. 

You're right that used rates are higher but, only by about 1-2 tenths of a point in my area...

[spizike9]

1 hour ago, Imcrazy said:

You're right that used rates are higher but, only by about 1-2 tenths of a point in my area...

 

Just trying to help