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Just got home from purchasing a new vehicle from a dealer.  Ford offered an extra $500 rebate for essentially financing through them for a terrible interest rate (6.2%).  Being the cheapskate fatwalleter I am I went for it intending to refinance to a Penfed 1.99% loan ASAP.  I'm told I should receive my paperwork for the car in 3 weeks.  My first payment will be due 10/14.  I'm guessing I won't be able to refinance until I receive the first bill in the mail?  Or can it be done sooner?

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I'm going through this now, having financed with Hyundai Motor Finance @ 3.49% to get a $500 incentive.  There was no pr... (more)

polaris (Sep. 07, 2013 @ 7:40a) |

Does Alliant do auto refinances?

whoDean (Sep. 17, 2013 @ 1:38p) |

According to someone I know who works at a Ford dealership, the FMCC loan has to be in force for three payments or the d... (more)

marketingmike (Sep. 18, 2013 @ 1:39a) |

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I was able to refinance with penfed before I received my first bill.

Alliant Credit Union is doing 1.49%, if you haven't already signed the loan with Penfed.

http://www.alliantcreditunion.org/loans/vehicle/auto/

I refinanced with Penfed right after I walked out of the dealership.

My brother did the same thing with his Ford a few years ago. Got the $500 and refinanced before the first payment was due.

Check your paperwork to make sure there is no prepayment penalty, and no restrictions due to the rebate. As long as those are clear, you are good to go anytime you want.

if the original loan has a prepayment penalty and you went ahead got refinanced. Does the other lender pay it?

kilacam19 said:   I refinanced with Penfed right after I walked out of the dealership.
  
Basically ditto here. I immediately refinanced an auto loan where the dealer seemed to have added a point or two to the APR, and the re-fi went through with no snags. I think PenFed had the loan paid off within 10 days of it even being originated.

Mallard454 said:   Alliant Credit Union is doing 1.49%, if you haven't already signed the loan with Penfed.

http://www.alliantcreditunion.org/loans/vehicle/auto/

  Good info, I wasn't aware of this option.  I need to avoid any more hard inquiries right now and since I already have a membership with Penfed they won't hit me with one (I do not yet have one with Alliant) so I think I'm going to just take the 1.99%.  It's an extra $250 total over the life of the loan but I'm ok with that to save a hard pull.

Isn't that only if they've pulled in the last 90 days? Did you open recently? Many on here would take a hard pull for $250. Also, 2 hard pulls in 1-2 days for auto loans should have about the same affect as 1 hard pull would.

BingBlangBlaow said:   Isn't that only if they've pulled in the last 90 days? Did you open recently? Many on here would take a hard pull for $250. Also, 2 hard pulls in 1-2 days for auto loans should have about the same affect as 1 hard pull would.
  I don't know for sure how Penfed operates...but based on the experiences I've had with them they seem to not require hard pulls for applications from current members in good standing under certain conditions.  After having one CC with them for a year I applied for a second one and an auto loan and was instantly approved for both without any hard pulls.  I already applied for this refinance and it shows I was "approved" but it never at any point indicated that it was going to pull my credit and the second I clicked apply the approval showed instantly (no normal pause while they check your credit).  I'll know for sure in a couple days I guess.

I've gotten to the point where I only waste hard pulls for profit of $400 or more.  If the $250 was up front I'd be more tempted, but $250 over 5 years isn't worth it to me to open a new account at a bank I don't currently have any business at, get a hard pull, and then probably have to wait for a manual approval due to the huge number of recent hard pulls I already have on my report.

I purchased a new Ford truck a couple years ago that had the $1,000 Ford Motor Credit bonus and I refinanced at the credit union two weeks later with no problem. The dealer said he'd like me to hold the loan for three months so they didn't get charged back from Ford, but I just couldn't do it.

tantuti said:   if the original loan has a prepayment penalty and you went ahead got refinanced. Does the other lender pay it?
  
Not in my experience. The best they would do is roll the prepayment penalty into the loan balance, but that doesn't really benefit you.

FYI for those interested or for anyone who searches on this topic and stumbles across this thread.

I purchased the vehicle on a friday the 30th using Ford Motor Credit (6.2% for a $500 rebate). On Saturday the 31st I applied for a refinance through Penfed (1.99%), which was instantly approved. Yesterday, thursday the 5th (4 business days after purchase) I received Penfed's check in the mail which I need to forward on to Ford Motor Credit. However along with the check I need to include information such as my Ford Motor Credit account number. I discovered that Ford has not generated the account number yet, after calling they told me it takes them 5 to 7 business days. So ATM I am in a holding period until I can get that number, at which point I should be able to send in the check and complete the refinance.

Also of note, I noticed that on tuesday the 3rd Penfed's auto loan rate went up to 2.24%.  Looks like Penfed is honoring the 1.99% rate for me.  Glad I applied for the refinance on saturday.

thanks for updating, OP.

jimmyrules712 said:   FYI for those interested or for anyone who searches on this topic and stumbles across this thread.

I purchased the vehicle on a friday the 30th using Ford Motor Credit (6.2% for a $500 rebate). On Saturday the 31st I applied for a refinance through Penfed (1.99%), which was instantly approved. Yesterday, thursday the 5th (4 business days after purchase) I received Penfed's check in the mail which I need to forward on to Ford Motor Credit. However along with the check I need to include information such as my Ford Motor Credit account number. I discovered that Ford has not generated the account number yet, after calling they told me it takes them 5 to 7 business days. So ATM I am in a holding period until I can get that number, at which point I should be able to send in the check and complete the refinance.

Also of note, I noticed that on tuesday the 3rd Penfed's auto loan rate went up to 2.24%.  Looks like Penfed is honoring the 1.99% rate for me.  Glad I applied for the refinance on saturday.
 

 
How do you know your loan was through Ford Motor Credit? Just because you got financing from the Ford dealer does not mean it is through FMC. There is a fair chance it will be from another lender rather than FMC.
 

jmw11 said:   
jimmyrules712 said:   FYI for those interested or for anyone who searches on this topic and stumbles across this thread.

I purchased the vehicle on a friday the 30th using Ford Motor Credit (6.2% for a $500 rebate). On Saturday the 31st I applied for a refinance through Penfed (1.99%), which was instantly approved. Yesterday, thursday the 5th (4 business days after purchase) I received Penfed's check in the mail which I need to forward on to Ford Motor Credit. However along with the check I need to include information such as my Ford Motor Credit account number. I discovered that Ford has not generated the account number yet, after calling they told me it takes them 5 to 7 business days. So ATM I am in a holding period until I can get that number, at which point I should be able to send in the check and complete the refinance.

Also of note, I noticed that on tuesday the 3rd Penfed's auto loan rate went up to 2.24%.  Looks like Penfed is honoring the 1.99% rate for me.  Glad I applied for the refinance on saturday.

 
How do you know your loan was through Ford Motor Credit? Just because you got financing from the Ford dealer does not mean it is through FMC. There is a fair chance it will be from another lender rather than FMC.

  ​Ford Motor Credit is printed all over the loan documents I signed.  The rebate terms also specifically stated that you must finance through Ford Motor Credit.  The dealer actually tried to talk me into letting them use a different lender for a better rate but no rebate.  I just said no thanks, I'd rather take the money up front.  I'm sure they thought I was an idiot.

Nice, I did the exact same thing for my truck a couple years back. $1000 additional rebate for using Ford for financing; a "great rate" at 72 months at 9% or something. I was like "Sweet! Thanks! I'll take it"

Finance guy was a total d-bag (Salesman was awesome), so after I signed, I told him I'd be refinancing in a couple hours when I got home. He tried the whole "You don't want to do that, because the paper work can get all tied up, the title has to get printed up and sent to the DMV, etc.. it's best to wait 90 days to avoid any hassles" -- that mess. Sure, buddy.

Guy made me wait hours on end the previous two days, including a "It turns out one of the $1k rebates expired a couple days ago, but we can meet you half way on that and give you an extra $500 for your trade-in". I told him to call the general manager in. Got the rebate honored.

Before I left, I be like "Hey, can I get that GAP insurance that you were talking about earlier?"
"Really?"
"hahaha... no."

Man, I hated that guy. haha

Anyways, got home from the dealership at 7PM, had the refinance started by 7:30; completed within days.

Yeah the one thing I'm still not sure about is the title. I was told that Ford would send me the title and related documents after 3 weeks, which I would then need to use to get my tags. Does anyone know if there's a reason why I cannot refinance before they've sent me the title?

I'm going through this now, having financed with Hyundai Motor Finance @ 3.49% to get a $500 incentive.  There was no prepayment penalty on the loan paperwork, but I do know that I have to hold the loan for 90 days for the dealer to get a kickback on the loan.  I wouldn't hesitate to cost the dealer their kickback to refinance at a lower rate whenever I like, but I did have a vehicle titling issue almost two months after I took delivery on the previous car I purchased.  For that purchase, I used a Capital One blank check for the initial purchase and the Honda dealer dragged their feet getting Capital One listed as the lienholder and getting them the title.

Based on the general incompetence I've been experiencing with the out of state Hyundai dealer I'm currently dealing with now, I wouldn't be surprised if I run into similar problems with this purchase.

Also, great info in the Alliant auto refi rate.  I will likely do that once I get this Hyundai matter settled since I'm guessing Penfed will raise rates again on 10/1/13.

Mallard454 said:   Alliant Credit Union is doing 1.49%, if you haven't already signed the loan with Penfed.

http://www.alliantcreditunion.org/loans/vehicle/auto/

  Does Alliant do auto refinances?

Joe328 said:   
=13pxFinance guy was a total d-bag (Salesman was awesome), so after I signed, I told him I'd be refinancing in a couple hours when I got home. He tried the whole "You don't want to do that, because the paper work can get all tied up, the title has to get printed up and sent to the DMV, etc.. it's best to wait 90 days to avoid any hassles" -- that mess. Sure, buddy.

 

  According to someone I know who works at a Ford dealership, the FMCC loan has to be in force for three payments or the dealership doesn't get its kickback on the financing.



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