~~I got 2 pre-approvals before I went and got my car, both credit unions. 3.19% and 3.5%. I went in and negotiated price first and got their best price of $16,550 (and paid $3k down, so I ended up financing $13,550). In order to get the best price I took a rebate of $750 to use their Hyundai Motor financing. This ended up saving me $5 per month than if I did not take the rebate and would have used the blank check I was written from the credit union. So chose the best deal I could get, and my APR is 5%. My question, when can I refinance this? Can I do it immediately and use the $3.19 I was already pre-approved for? Or do I have to wait a while? Or can I do it immediately, but have to get pre-approved all over again? The lady I spoke to at the CU on the phone said anything under 5,000 miles is still considered new, so I can refinance now (2 days after buying the car).Is it really this easy? Do you think Hyundai Motor finance will penalize me, or try and get the $750 back on the rebate I got? Can they legally do this?Some people may say wait a few months to refinance, but I have read it takes 14 days for all these credit inquiries to hit my credit score. So if I wait 14 days, they will all go on record, drop my credit score, and I might not be able to get the 3.19 again?
The inquiries will be grouped together because banks know you are probably "rate shopping" and expect multiple inquiries. I'm guessing the dealership told you that you couldn't re-finance for 3 months, because they would lose their commission, but that isn't your problem. Review your contract, I doubt there is any prepayment penalty.
Some lenders will still give you "new car" rates on a refinance as long as you are the original owner, so the CU telling you that under 5,000 miles is still new would be consistent with that line of thinking.
Check your paperwork; if there is no provision for Hyundai to claw back the rebate, then go for it! The only complication might be that Hyundai might not have the whole transaction in their system yet; you might be trying to pay off a loan they don't even know they made. As long as you can call them or log in to your account and get a payoff, you would be good to go.
Read the fine print. I went the same route some years ago. In my case, I went thru two payment cycles and then refinanced at the better rate. YMMV. You can tell the credit union what happened. They have seen it all. Check other lenders. That interest rate sounds high, but the market may have changed since I bought my Toyota Prius. Nationwide sometimes has promotion rates for refinance below 3% I financed elsewhere and got in on the Nationwide promo rate a few months later.
The terms of your loan should identify if you have a prepayment penalty. I bought a new Hyundai three years ago and financed with Hyundai Finance at a lousy rate to save $500. When I got my loan "welcome letter" in the mail I immediately joined Alliant Credit Union and started the refinance process. The only thing they needed was a copy of the sales contract and a payoff letter that I was able to generate on the Hyundai web site. I did have to pay the RMV $30 to change the lienholder on the title, but that was the only cost.
If you are not a member of Alliant, they will give you a $100 bonus if you get an auto loan within 90 days of joining (link ). Their current rate for new cars (bought new within the last 6 months I believe) is 1.99%.
I did something similar about a year ago: got a large rebate for using the in-house financing (at a higher rate than PenFed), made 3 payments at the higher rate (due to contract stipulation for the rebate), refinanced, no problems.
Beanholio said: made 3 payments at the higher rate (due to contract stipulation for the rebate), refinanced, no problems.OP wants to do this much sooner, b/t 2 and 14 days after purchase of the vehicle. Hyundai Finance might not yet have a payoff amount on such a new loan.
As has been said, it depends on if you have a any sort of penalty. I refinanced a few days after going through Ford for financing initially to get a bonus/incentive (never actually made a payment to Ford except the payoff amount). I believe the dealer may not get some bonus/incentive if you do it really soon, but I was buying from a dealer I was not planning on visiting again because it was fairly far away from where I live.
gwillison said: Once CU said I had to have the title to refinance, did your refinance company do it without the title in your hands? Auto titles vary from state to state. In some states the lienholder keeps the title. In others the owner has the title with a lien on it that must be released to transfer the title.
As long as there is no prepayment penalty, I'd refi ASAP if you have a better deal waiting. I actually did that four times the first six months after I had bought my GTI. I got $200 average per refi when the lenders were all giving gift cards away to refi your vehicle. Ended up with a better rate and $800 in VGCs. Just have to make sure the lenders you're refinancing to don't require the title. The last one I hit did, so I planned accordingly.
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