Can you early payoff gm finance loan w/out penalty ?

[homesick]

Just purchased my (new) 2018 one week ago, with the GM financing deal. Finance guy advised I should make the first 3 months payments, and then can payoff after 3rd payment with no penalty. He advised extra payment to the principal can be as much as I want for those first 3 payments to lower the interest being paid. That's the plan.

That's what I was thinking. Pay all but a token amount, then just wait for the 'finish line' to make the last payment. You need, also, to write "apply to principal" (or something similar) on your extra payment check(s). I learned that lesson when my own brother cheated me on a business deal.

I think I'd also make the salesman show me that rule on paper. I wouldn't necssarily believe a guy in a plaid sport jacket.

joe

 

[Rdr854]

I recently paid a vehicle off at the first payment. Look at your finance contract. If it is simple interest and says “NO PREPYMENT PENALTY”, you can pay the loan off when you want without penalty.

The finance manager at the dealer is “asking” you to wait for a specified period of time so that the dealer does not lose its commission for originating the loan.

 

[PG01]

I recently paid a vehicle off at the first payment. Look at your finance contract. If it is simple interest and says “NO PREPYMENT PENALTY”, you can pay the loan off when you want without penalty.

The finance manager at the dealer is “asking” you to wait for a specified period of time so that the dealer does not lose its commission for originating the loan.

You’re right, i just looked, it expressly states just that right on top.

 

[PwrdbyM]

I've done this multiple times where I had cash to pay in full but wanted to take advantage of an incentive only available if financing through them. You can ask all the forum questions you want but in the end the answer is to read your contract as it will be spelled out in it. No one on this forum, despite prior experience, can say for sure what it says. I can tell you that auto loan contracts from auto maker financial institutions do not NORMALLY have a penalty, but no guarantee. Also, don't take the finance guys word for it because he likely doesn't know. He makes a commission on each loan and will tell you want you want to hear to push it through.

 

[DCP2000]

We paid ours off when we received notice that the first payment was due. We did not incur any penalties and they sent us the title very quickly.

 

[Mad Maxx]

My salesperson just tells me pay on it until I get the Title in the Mail, then pay it off. Here in NY, that's anywhere from 1-3 Months.

 

[msrvpeig]

Ended up paying it off as soon as I received the account number, which was about 1 week before the first payment was due. No penalty and less than $100 interest. Considering I got a $1,500 rebate on the purchase price for financing thru GM Finance, I'm happy. Just waiting on the title now.

 

[BG1988]

Ended up paying it off as soon as I received the account number, which was about 1 week before the first payment was due. No penalty and less than $100 interest. Considering I got a $1,500 rebate on the purchase price for financing thru GM Finance, I'm happy. Just waiting on the title now.

you mean 1400 rebait

 

[08HoeCD]

Guys, if you don’t fully understand the terms and payoff options of any loan or financing agreement BEFORE you sign it, you’re doing it wrong.

What’s more, never enter into any financing agreement other than a simple interest loan, meaning a loan that allows you to make additional payments (beyond the minimum payment installment amount/frequency) and to pay it off early at any time in order to reduce or eliminate interest accrual.

 

[petethepug]

The correct answer is in the paperwork you signed. If none of the ppwk you signed states there’s a prepayment penalty, than there’s no penalty.

All they grey area is out there because every loan has a chargeback period to the F&I (finance/insurance) guy. Ask him and he’ll tell you how long to wait before he loses some or all his commission.


Sent from my iPhone using Tapatalk