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rated:
~~I bought a car 12 days ago, got financing through Hyundai at 5% in order to get a $750 rebate.†3k down
13,552 loan @5% = 256 a monthI want to refinance right away to save some money since I know I can do better than 5%. I called penfed and got approved for 2.99% apr, and the10 day payoff from Hyundai will be $13592.† Penfed has asked me to get a 15 day payoff sent to them, and that will start the process, they are aware I donít even have the title yet as I bought it 12 days ago.My questions..
1.†Is this unusual for a company to refinance a loan when I donít even have the title yet?† They said they will get the title from Hyundai and send it to me with their name on it.† Will this cause me any problems down the road?† Other credit unions have said I need to wait to have the title in hand to use them to refinance.
2.†There is no prepayment penalty, but how is the payoff $13,592 when the loan is 12 days old and was originally $13,552?† $40 bucks already, is this interest?
3.†Any idea why penfed wants a 15 day payoff instead of a 10 day?† Im guessing that will be higher than the 10 day?
4.†In going from 5% to 2.99%, my payments will drop from $256 to $244 per month (based on the payoff amount as my new starting loan).† Would you do this, or keep shopping around?† Doesnít seem like that much a difference considering the high interest rate I was initially given.

Member Summary
Most Recent Posts
Hey Ops,
I am just curious how your refinance turns out.
Since you had refinanced before 1st payment presumably,
did Hyun... (more)

yupkisama (Nov. 06, 2016 @ 7:33p) |

I've refinanced loans with Hyundai and Nissan before making the first payment and they've never clawed back the incentiv... (more)

polaris (Nov. 07, 2016 @ 9:46a) |

Verify by reading, not asking. †Basically no prepayment penalty (standard) means you're ok. †You ask the dealer and they... (more)

Bend3r (Nov. 07, 2016 @ 6:57p) |

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rated:
vansville said:   ~~I bought a car 12 days ago, got financing through Hyundai at 5% in order to get a $750 rebate.†3k down
13,552 loan @5% = 256 a monthI want to refinance right away to save some money since I know I can do better than 5%. I called penfed and got approved for 2.99% apr, and the10 day payoff from Hyundai will be $13592.† Penfed has asked me to get a 15 day payoff sent to them, and that will start the process, they are aware I donít even have the title yet as I bought it 12 days ago.My questions..
1.†Is this unusual for a company to refinance a loan when I donít even have the title yet?† They said they will get the title from Hyundai and send it to me with their name on it.† Will this cause me any problems down the road?† Other credit unions have said I need to wait to have the title in hand to use them to refinance.
2.†There is no prepayment penalty, but how is the payoff $13,592 when the loan is 12 days old and was originally $13,552?† $40 bucks already, is this interest?
3.†Any idea why penfed wants a 15 day payoff instead of a 10 day?† Im guessing that will be higher than the 10 day?
4.†In going from 5% to 2.99%, my payments will drop from $256 to $244 per month (based on the payoff amount as my new starting loan).† Would you do this, or keep shopping around?† Doesnít seem like that much a difference considering the high interest rate I was initially given.


1. Not sure how else this would work. The lienholder (Hyundai) should hold the title until your balance is paid off. When it is paid off the title will be sent to you.
2. You likely started accumulating interest as soon as you signed the docs. I just bought a new car and refinanced it last month and paid ~$50 in interest after a couple of weeks.
3. Absolutely, 15 days worth of interest will cost more than 10 days of interest.† You will be refunded any excess payment by Hyundai once your loan is paid off.
4. Is this a new car?† If so, I would have expected a lower rate.† Try DCU†and Alliant†($100 bonus†if you are a new member) for better rates.
††

rated:
Thanks for the reply.

1. I live in Maryland. For my last car, I still owed capital one $8,500. But I have always had the title. When I sold it to CarMax, I brought in the title, signed it, and they sent the check to capital one to pay it off. I was told by the dealer that I will get the title in about 45 days in the mail (they know I am financing through Hyundai). Maybe different states work different and your state you are not given the title if you owe on the car?
2. Surprised it accumulates that fast, esp since my first payment isn't due till October.

4. It is brand new, it had 20 miles on it when I bought it from Hyundai. I have now put 900 more on it. It is called a "new vehicle refiance" according to pen-fed. The rates I was given when I shopped at local Credit Unions were 3.15$, 3.49%, and 4.5%. This was with a 705 credit score (they told me that after I applied). I eventually just used Hyundai Finacing at 5% because they gave a 750$ rebate if I used them, so the payments ended up being slightly lower with that option, and now I will just refiance and get a lower rate anyway.

rated:
I'm in Massachusetts, so I guess it works differently.† I've never received a title for any car I've owned until it was paid off.

I just refinanced for 60 months @ 1.99% with Alliant (800+ FICO score) after originally financing through the dealer @ 3.99% for a $500 incentive.

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polaris said:   
The lienholder (Hyundai) should hold the title until your balance is paid off. When it is paid off the title will be sent to you.
††

As mentioned, this varies by state.† In some states, the lienholder is named on the title, but the owner of the vehicle has possession of the title.† In other states, the lienholder has possession of the title.

OP - Interest on your loan is about $1.85 a day, so yes, a 12 day old loan, plus the 10 day payoff period, will amount to around forty bucks.† As mentioned though, if the payoff arrives earlier, Hyundai will send you a refund check.†

rated:
I just logged into my account with penfed, I see yesterday they got met a 685 with Equifax, maybe 2.99% is the best I can get on a new car refinance but I will check the others. They also do not require any sort of direct deposit to keep my account free which is nice. They said my state Maryland is a 2 title state and I do infact hold the title even if I am paying on a loan.

rated:
DCU has a reputation for giving their best auto loan rates at a score of 680.

I believe they use the Equifax FICO 04 score, which is most commonly associated with mortgage origination. The Equifax FICO 04 is often lower for many consumers than the more common FICO 08 because the 04 has a lower top end.

https://www.dcu.org/loans/auto-choices.html

If you look at their rates, it's worth a phone call.

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Thank you, I will check out DCU. Just curious, where do you guys get this information as to who has the best rates? is there a thread on the board or is it just personal knowledge?

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vansville said:   Thank you, I will check out DCU. Just curious, where do you guys get this information as to who has the best rates? is there a thread on the board or is it just personal knowledge?
††
www.bankrate.com

rated:
do you have NAVY CU or can qualify? you can refi there and get a $200 credit then refi again to a lower rate else where

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vansville said:   Thank you, I will check out DCU. Just curious, where do you guys get this information as to who has the best rates? is there a thread on the board or is it just personal knowledge?
††
Friends come to me for advice on this kind of stuff, and I help them research options.

rated:
vansville said:   Thank you, I will check out DCU. Just curious, where do you guys get this information as to who has the best rates? is there a thread on the board or is it just personal knowledge?
Some threads pop up from time to time, but IMO Penfed is typically a good barometer for the better auto loan rates out there.† I've found Alliant, DCU, and the rates offered locally by AAA to be pretty similar.† For my purchase in July I was approved for 60 months @ 1.99% by both Penfed and Alliant.† Three years ago I believe it was 1.99% for Penfed and 1.49% for Alliant.

rated:
I did a refinance on a new car a few months ago. I can't guarantee the accuracy, but enjoy the fruits of my labor. Most was found right within fatwallet. Some have membership requirements and banking requirements, I opted for 4 years at 1% with Senate.

https://www.ussfcu.org/rates2.php - 1% - 4 year, 1.75% - 5 years
https://www.penfed.org/new-auto-loan/?WT.ac=1853 - 1.9% - 5 years
https://www.dcu.org/loans/auto-loans.html#rates - 1.75% - 65 mos.
https://www.aurgroup.org/66-uncategorised/81-rates.html - 2.24% - 5 years
Truliant - as low as 1.75% - 5 years
Nefcu 5 years 1.49%
Lightstream 1.99%

rated:
talonesi said:   I did a refinance on a new car a few months ago. I can't guarantee the accuracy, but enjoy the fruits of my labor. Most was found right within fatwallet. Some have membership requirements and banking requirements, I opted for 4 years at 1% with Senate.

https://www.ussfcu.org/rates2.php - 1% - 4 year, 1.75% - 5 years
https://www.penfed.org/new-auto-loan/?WT.ac=1853 - 1.9% - 5 years
https://www.dcu.org/loans/auto-loans.html#rates - 1.75% - 65 mos.
https://www.aurgroup.org/66-uncategorised/81-rates.html - 2.24% - 5 years
Truliant - as low as 1.75% - 5 years
Nefcu 5 years 1.49%
Lightstream 1.99%

††
Good call on USSFCU ("Senate"). †0.99% (with hoops) is hard to beat. †I recommend them a lot. †I'm not sure what their credit requirements are to get that rate.

rated:
WOW! USSFCU .99% on used cars up to 10 years old! With open field of membership with a small contribution to another entity! That is an amazing rate, I'm in the market for a new car and I will be using them for sure. As another point of reference, independent used car dealers typically have rate charts for all the local credit unions that service the local area therefore being in their field of membership, that they may disclose if you ask nicely.

rated:
Light stream is 1.99% for 60 with no lien

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I just closed on a 0.99% USSFCU loan to buy out a lease. The membership requirement was a one-time $50 contribution.

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what scores and rates are people getting with USSFCU? I called, since im doing 5 years, the lowest I can get is 1.75. right now I am already approved at PenFed for 2.99. The thing is, in order to join USSFCU I would need to donate $50 (they will not let me apply as I am not a member).

So the question is, should I spend $50 to find out if I can get a 1.75 rate when I already know I can get a 2.99 somewhere else. The drop in rate would save me about $260 (Im taking a 5 year loan, but plan on trading in the car and paying it off in 2 years).

Im thinking if 2.99 is the best rate I can get from Penfed with a 685 score, the chances of USSFCU beating that aren't high enough for me to risk just throwing away $50 to findout

rated:
vansville said:   what scores and rates are people getting with USSFCU? I called, since im doing 5 years, the lowest I can get is 1.75. right now I am already approved at PenFed for 2.99.

† Really?† You'd pay an extra 3/4% just to stretch the loan another 12 months, when you plan to pay it off in half the term anyways?

You have much bigger issues if you need that extra year to reduce the monthly payment to something you can afford.

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superdrew said:   Light stream is 1.99% for 60 with no lien
† The bar is fairly high to qualify, but that's my favorite auto financing offer. †Can't beat unsecured debt at <2%.

rated:
Anybody else reading this: You can generally refi an auto loan the next day. Take the rebate and high interest rate and redo it ASAP. The only people who can't are the ones with poor credit to begin with. Dealerships like to bend the truth and tell you that you must wait 3 months. Not true. Line up your Credit Union ahead of time. They will still consider it a new car loan with new car rates unless you wait too long.

rated:
Apologies if this is covered elsewhere but I'm a bit new to this. Looking to buy a 25k car used from a private party. My understanding is I can't use Lightstream as that has to be through a dealer, but I can use the rest? How does that work exactly - do they just send me the money and then I pay the private party?

Credit score of 800, so shouldn't have a problem qualifying for the good rates (I think anyway). Would the best strategy be to just call around and take the lowest rate? I would like to get the funds somewhat quickly as I have the car I want to buy already picked out.

Thanks in advance.

rated:
Some states are title states and some are lien states. In one, if you owe money, the lender holds the title, in others you get the title, but it has a lien to the lender recorded on it.

http://allabouttitles.com/legal_legislative/title-holding-states...

Also, some states now have e-titles. Some are for all cars others are just for cars where you owe money. Some are voluntary and some are mandatory. There is more info on another page of the website above.

rated:
Hey Ops,
I am just curious how your refinance turns out.
Since you had refinanced before 1st payment presumably,
did Hyundai or Dealership had charged back any of rebate amount ($750 rebate)?
I purchased a new Ford last night, and I want to refinance because their rebate contingent APR seems too high (4.09% over 60M)

Thanks,

rated:
I've refinanced loans with Hyundai and Nissan before making the first payment and they've never clawed back the incentives I financed with them to get.† I would verify the terms of the financing and incentive before pulling the trigger though.

rated:
polaris said:   I've refinanced loans with Hyundai and Nissan before making the first payment and they've never clawed back the incentives I financed with them to get.† I would verify the terms of the financing and incentive before pulling the trigger though.
† Verify by reading, not asking. †Basically no prepayment penalty (standard) means you're ok. †You ask the dealer and they'll lie to you saying you'll get a charge.

The†dealer†is the one who receives the clawback. †And they deserve it for the sales tactics. †(Sale price is not supposed to be contingent on third party financing with kickbacks for them).

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