New Vehicle Purchase: Financing Through Dealership Question

quote:

---

how long do I need to keep this through them before exploring refinancing options?

---

Not sure. I imagine there may be some fine print in the paperwork, but I doubt it. That’s like enforcing a prepayment penalty.

quote:

---

Will refinancing this loan have any effect on my warranties through the dealership?

---

The warranty should have nothing to do with the method of financing.

I once got a similar deal through the car manufacturer/dealer. There was no time limit. When my 1st note was due I paid off the balance.

Warranty has nothing to do with financing. I’ve never seen minimum payments before refinancing but just read the contract you signed.

As others have said, warranty has nothing to do with this and should not be affected.


Check fine print, and ask if there are any prepayment penalties.

quote:

---

The sales person request 3 monthly payments so that they keep their full commission. Ive had 2 sales people tell me this.

---

Outside of a prepayment penalty, this should be the adverse affect for you moving the loan.

What if a dealership is offering 0% APR 60 months ($16.67 per $1,000 borrowed), or $2,500 cash back?

quote:

---

What if a dealership is offering 0% APR 60 months ($16.67 per $1,000 borrowed), or $2,500 cash back?

---

Use an amortization calculator or chart and compare. See what the rate would be from another lender, take into consideration how long you'd let the loan go, if you'd pay off early etc and run the numbers.

This makes no sense to me. You paid off a car loan with a HELOC that almost certainly is at a higher interest rate than the car loan?

quote:

---

Didn't give a shite if the salesman/dealership lost anything.

---

kind of shitty, the salesman is just trying to make a living like the rest of us. Unless they were offering an insane rate, you're only talking a few bucks difference here by not waiting until the commission period is over.

quote:

---

This makes no sense to me. You paid off a car loan with a HELOC that almost certainly is at a higher interest rate than the car loan?

---

No I didn’t. Why would you assume that? The HELOC was 3.5% and the dealer’s rate was higher. I got an additional $1,000 off by initially financing w/ the dealer.

Plus, I was able to deduct the HELOC interest.

Edit: Found the loan paperwork in the vehicle. The dealer’s apr was 4.99%; the HELOC was either 1% or 2% above the prime rate, or something like that, and for most of the loan I was charged 3.5%. It may have started out at 4% or 4.5%, but it was a period of decreasing rates and the loan rate went down over time.

quote:

---

kind of shitty

---

Maybe so, but so is the entire car buying experience. And honestly, the 3 months thing to get their full commission is pretty shitty to begin with. The salesperson I dealt with did very little on the financing end. The financing manager did all that work, and he was a complete arse so I'll not lose any sleep over it.