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rated:
Hello all,

I bought a new Hyundai Sonata Sport with Value Pack last Tuesday, 5/29/17, and the paperwork was submitted by the dealership the next day, 5/30/17. 

I financed with HMF (Hyundai Motor Finance) at 5.99% for $1,150 rebates. ($750 rebate + $400 new grad). My first due date is on 6/28/17 so I should be receiving payment information from HMF this week regarding my loan and what not. I plan to refinance ASAP for a lower rate.

I've read that the dealership won't get their kick back if I refinance before 90 days, which I don't really care because I didn't have a good experience with them anyways. If I felt more welcome during the process, I wouldn't have mind waiting 90 days so they get their money. 

I was approved through BofA for %2.49 at 48 months or 2.54% at 60 months so I know I'm able to get lower rates. I saw Penfed offering 1.99% and that would be lovely if I'm able to refinance with Penfed for that rate. 

Here's my question: Has anyone refinanced weeks after financing with HMF or other manufacturers' financing service? And if so, did you have to pay any penalty and what was the process like?

Edit: are these two the contracts? Sorry for my ignorance.

http://imgur.com/Pko66BG 

http://imgur.com/2cfx1iG



 

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rated:
100% depends on what's written on your contract with HMF.

If you're eligible for penfed, also consider navy federal. They often run promos for $200 back if you refi a new car loan with them.

rated:
I refid about 30 days into my hmf term.

No problems. But I remember that I called them to make sure and request a payoff letter. You might want to do the same. Don't go by what I'm saying.

rated:
I believe the FWF way is to take the dealer financing to get the rebate incentive. Then refinance with the bank of your choice on the next day.

rated:
Some require at least one payment to be made. Like previously posted you need to read what the contract says.

rated:
By "contract," are you guys referring to the purchase contract?

http://imgur.com/Pko66BG
http://imgur.com/2cfx1iG

The two links are above are all I can find in the stack of paperwork I signed in the finance office. If those are not it, could you guys point me to where I can find the contract terms? Thank you very much. 

rated:
1d) you may prepay all or part of the unpaid part of the amount financed at any time.

rated:
imbatman said:   1d) you may prepay all or part of the unpaid part of the amount financed at any time.
  
Oh wow, it's as simple as that?

I thought it'll have a separate section that talks about refinancing. Haha, sorry about that. This is my first time buying a car on my own so I'm still learning.

And it does say something about the charge I have to pay in the amount of $25, $50, or $75. Could you explain that to me?
Thanks a lot for your help!
 

rated:
I also financed with HMF at a lousy rate to get incentives and refinanced with Alliant Credit Union as soon as I got my loan "welcome" packet.  Alliant needed a payoff quote letter (available at HMF web site) and a copy of the sales contract to start the process.  As long as your loan doesn't have a prepayment penalty, you should be in good shape.  I also didn't care if the Hyundai dealer got their kickback because of the way I was treated.  Based on some great info I got from a member here I knew they were dishonest/incompetent and wanted to stick it to them any way I could.  In the end, their ignorance about the Motozuma/BoostUp program also ended up costing them $500 despite my attempts to do the right thing. Jerks. :p

rated:
polaris said:   I also financed with HMF at a lousy rate to get incentives and refinanced with Alliant Credit Union as soon as I got my loan "welcome" packet.  Alliant needed a payoff quote letter (available at HMF web site) and a copy of the sales contract to start the process.  As long as your loan doesn't have a prepayment penalty, you should be in good shape.  I also didn't care if the Hyundai dealer got their kickback because of the way I was treated.  Based on some great info I got from a member here I knew they were dishonest/incompetent and wanted to stick it to them any way I could.  In the end, their ignorance about the Motozuma/BoostUp program also ended up costing them $500 despite my attempts to do the right thing. Jerks. :p
  
I posted two pictures of my contract. Do you mind taking a look and point me to which part has the clause regarding prepayment penalty? I tried reading it and saw something at 1d, would that be it? Thanks a lot 

rated:
acrohtruong said:   
imbatman said:   1d) you may prepay all or part of the unpaid part of the amount financed at any time.
  
Oh wow, it's as simple as that?

I thought it'll have a separate section that talks about refinancing. Haha, sorry about that. This is my first time buying a car on my own so I'm still learning.

And it does say something about the charge I have to pay in the amount of $25, $50, or $75. Could you explain that to me?
Thanks a lot for your help!

1a) tells you how they will calculate the finance charge.
1b) tells you how they will apply payments the finance charge.
1c) says how a and b are impacted by late payments
once you're there. If your finance charge is less than $75, but your borrowed amount is more than $2,000, then you'll pay $75. If your finance charge is more than $75, then you'll pay the finance charge.

In order to understand all of that, I'd reach out to HMF and ask for a payoff quote letter. It'll outline all the specific numbers for your loan.

If that calculation says the finance charge is less than $75

rated:
imbatman said:   
acrohtruong said:   
imbatman said:   1d) you may prepay all or part of the unpaid part of the amount financed at any time.
  
Oh wow, it's as simple as that?

I thought it'll have a separate section that talks about refinancing. Haha, sorry about that. This is my first time buying a car on my own so I'm still learning.

And it does say something about the charge I have to pay in the amount of $25, $50, or $75. Could you explain that to me?
Thanks a lot for your help!

1a) tells you how they will calculate the finance charge.
1b) tells you how they will apply payments the finance charge.
1c) says how a and b are impacted by late payments
once you're there. If your finance charge is less than $75, but your borrowed amount is more than $2,000, then you'll pay $75. If your finance charge is more than $75, then you'll pay the finance charge.

In order to understand all of that, I'd reach out to HMF and ask for a payoff quote letter. It'll outline all the specific numbers for your loan.

If that calculation says the finance charge is less than $75

  
Thank you, I will read your response and my contract terms more carefully when I get home later today. 

When I request a pay off quote, HMF gives me different options:

1. Purchase
2. Refinance

3. Trade in
4. Sale

5. Other 


Would kind of affects would picking refinance vs purchase have? If you happen to know.

Thanks a lot!

rated:
acrohtruong said:   
polaris said:   I also financed with HMF at a lousy rate to get incentives and refinanced with Alliant Credit Union as soon as I got my loan "welcome" packet.  Alliant needed a payoff quote letter (available at HMF web site) and a copy of the sales contract to start the process.  As long as your loan doesn't have a prepayment penalty, you should be in good shape.  I also didn't care if the Hyundai dealer got their kickback because of the way I was treated.  Based on some great info I got from a member here I knew they were dishonest/incompetent and wanted to stick it to them any way I could.  In the end, their ignorance about the Motozuma/BoostUp program also ended up costing them $500 despite my attempts to do the right thing. Jerks. :p
  
I posted two pictures of my contract. Do you mind taking a look and point me to which part has the clause regarding prepayment penalty? I tried reading it and saw something at 1d, would that be it? Thanks a lot 

  
Your contract has a similar format with a more verbose prepay section than mine (from 2013).  IANAL, but I don't see anything about a prepayment penalty even though it doesn't explicitly say you won't pay one.  It does appear to set a minimum floor of $75 in interest (from 1d of your doc above) that mine did not.

Mine said:
d. You may prepay. You may prepay all or part of the unpaid part of the Amount Financed at any time without penalty. If you do so, you must pay the earned and unpaid part of the Finance Charge and all other amounts due up to the date of your payment.

My payoff quote had a per diem of $3.09 per day, so I could have gone 3+ weeks before hitting $75 in interest.  It looks like I ended up paying $117.39 in interest to HMF, which means this took 38 days to settle after my initial purchase.  What do the numbers on your payoff quote from the HMF website look like?
 

rated:
acrohtruong said:   
imbatman said:   
acrohtruong said:   
imbatman said:   1d) you may prepay all or part of the unpaid part of the amount financed at any time.
  
Oh wow, it's as simple as that?

I thought it'll have a separate section that talks about refinancing. Haha, sorry about that. This is my first time buying a car on my own so I'm still learning.

And it does say something about the charge I have to pay in the amount of $25, $50, or $75. Could you explain that to me?
Thanks a lot for your help!

1a) tells you how they will calculate the finance charge.
1b) tells you how they will apply payments the finance charge.
1c) says how a and b are impacted by late payments
once you're there. If your finance charge is less than $75, but your borrowed amount is more than $2,000, then you'll pay $75. If your finance charge is more than $75, then you'll pay the finance charge.

In order to understand all of that, I'd reach out to HMF and ask for a payoff quote letter. It'll outline all the specific numbers for your loan.

If that calculation says the finance charge is less than $75

  
Thank you, I will read your response and my contract terms more carefully when I get home later today. 

When I request a pay off quote, HMF gives me different options:

1. Purchase
2. Refinance

3. Trade in
4. Sale

5. Other 


Would kind of affects would picking refinance vs purchase have? If you happen to know.

Thanks a lot!

  insurance probably? I'm not sure

rated:
polaris said:   
acrohtruong said:   
polaris said:   I also financed with HMF at a lousy rate to get incentives and refinanced with Alliant Credit Union as soon as I got my loan "welcome" packet.  Alliant needed a payoff quote letter (available at HMF web site) and a copy of the sales contract to start the process.  As long as your loan doesn't have a prepayment penalty, you should be in good shape.  I also didn't care if the Hyundai dealer got their kickback because of the way I was treated.  Based on some great info I got from a member here I knew they were dishonest/incompetent and wanted to stick it to them any way I could.  In the end, their ignorance about the Motozuma/BoostUp program also ended up costing them $500 despite my attempts to do the right thing. Jerks. :p
  
I posted two pictures of my contract. Do you mind taking a look and point me to which part has the clause regarding prepayment penalty? I tried reading it and saw something at 1d, would that be it? Thanks a lot 

  
Your contract has a similar format with a more verbose prepay section than mine (from 2013).  IANAL, but I don't see anything about a prepayment penalty even though it doesn't explicitly say you won't pay one.  It does appear to set a minimum floor of $75 in interest (from 1d of your doc above) that mine did not.

Mine said:
d. You may prepay. You may prepay all or part of the unpaid part of the Amount Financed at any time without penalty. If you do so, you must pay the earned and unpaid part of the Finance Charge and all other amounts due up to the date of your payment.

My payoff quote had a per diem of $3.09 per day, so I could have gone 3+ weeks before hitting $75 in interest.  It looks like I ended up paying $117.39 in interest to HMF, which means this took 38 days to settle after my initial purchase.  What do the numbers on your payoff quote from the HMF website look like?

  
I haven't requested my payoff quote yet because I stupidly bought the service contracts the finance guy was selling me. The day after I signed the contract, I requested to have those contracts cancelled. The finance guy had me fill out two cancellation forms and he told me he received it when I sent it over email to him.

I called HMF today to ask if they've received the refund for those service contracts and they said no. So, I have to get in touch with the finance guy tomorrow and see where I am in the process of getting my refund. I really want to refinance so I get lower my monthly payment and pay less interest. 

rated:
request payoff quote... HMFC will send you a refund of the service contract amount once cancelled. FYI, the Dealer cost on a 7/100 wrap was around $750ish 6 years ago.

rated:
acrohtruong said:   I haven't requested my payoff quote yet because I stupidly bought the service contracts the finance guy was selling me. The day after I signed the contract, I requested to have those contracts cancelled. The finance guy had me fill out two cancellation forms and he told me he received it when I sent it over email to him.

I called HMF today to ask if they've received the refund for those service contracts and they said no. So, I have to get in touch with the finance guy tomorrow and see where I am in the process of getting my refund. I really want to refinance so I get lower my monthly payment and pay less interest.


I don't know how long the refund would take to trickle through the system, but I wouldn't necessarily wait for it before starting the refi. Right now you're paying 5.99% interest on the borrowed money when you could potentially cut the rate by 2/3 at a place like DCU (link ). In the worst case you can always make an additional principal payment if you get the refund in the form of a check.
  

rated:
polaris said:   
acrohtruong said:   I haven't requested my payoff quote yet because I stupidly bought the service contracts the finance guy was selling me. The day after I signed the contract, I requested to have those contracts cancelled. The finance guy had me fill out two cancellation forms and he told me he received it when I sent it over email to him.

I called HMF today to ask if they've received the refund for those service contracts and they said no. So, I have to get in touch with the finance guy tomorrow and see where I am in the process of getting my refund. I really want to refinance so I get lower my monthly payment and pay less interest.


I don't know how long the refund would take to trickle through the system, but I wouldn't necessarily wait for it before starting the refi. Right now you're paying 5.99% interest on the borrowed money when you could potentially cut the rate by 2/3 at a place like DCU (link ). In the worst case you can always make an additional principal payment if you get the refund in the form of a check.
  

  
So if I refinance and the refinance process is completed before the refund is received by HMF, once HMF receives the refund check from the dealership, they're going to mail that refund check to me?

I'm just worried that if the dealership pulls a quick one on me and doesn't refund me the money, I will never see that money again. 

rated:
superdrew said:   request payoff quote... HMFC will send you a refund of the service contract amount once cancelled. FYI, the Dealer cost on a 7/100 wrap was around $750ish 6 years ago.
  
Please excuse my ignorance, but what do you mean by a "7/100 wrap"? Haha

rated:
acrohtruong said:   So if I refinance and the refinance process is completed before the refund is received by HMF, once HMF receives the refund check from the dealership, they're going to mail that refund check to me?

I'm just worried that if the dealership pulls a quick one on me and doesn't refund me the money, I will never see that money again.


After being a very knowledgeable and helpful resource for me when I bought my Hyundai, I wouldn't hesitate to trust superdrew's advice. I would personally trust HMF to do the right thing after my dealings with them, but you never know what a crooked salesperson/dealer will try to pull. I would definitely keep a paper trail of your cancellation request and any followup correspondence in case the dealer drags their feet and you need to escalate the issue.

rated:
polaris said:   
acrohtruong said:   So if I refinance and the refinance process is completed before the refund is received by HMF, once HMF receives the refund check from the dealership, they're going to mail that refund check to me?

I'm just worried that if the dealership pulls a quick one on me and doesn't refund me the money, I will never see that money again.


After being a very knowledgeable and helpful resource for me when I bought my Hyundai, I wouldn't hesitate to trust superdrew's advice. I would personally trust HMF to do the right thing after my dealings with them, but you never know what a crooked salesperson/dealer will try to pull. I would definitely keep a paper trail of your cancellation request and any followup correspondence in case the dealer drags their feet and you need to escalate the issue.

  
Thanks for your comment. I will look into refinancing today after work.

Emailed he finance guy to find out it takes 6 to 8 weeks for the refund to happen. That's a VERY long time to wait for a refund.

Should I refinance now or make two payments and wait for the refund to process to be safe?


Edit: Just got off the phone with HMF:

 I asked about the pay-off scenario with a pending refund and the person I spoke to said that if I plan to pay-off, it's best to pay off the loan ASAP so I incur less interest. When the check gets sent to HMF from the dealer and my loan had been paid off, they'll mail that check to me within 15 days. 

Did you lose the rebates you got for financed with HMF when you refinanced?

Anything else I've missed?


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