Refinancing - a couple of questions

[PivotalRex]

I have a good deal on a Yukon Denali. The problem is that there's a 2500.00 rebate attached that requires GM financing. For 72 months the best they can offer is 3.99%. Can someone suggest a credit union or bank for refinancing? Navy Federal has 2.79 or 3.49 depending on the term.

For those that have experience with refinancing is it even worth it at 3.99%?
Also, is it better to refinance right away or wait 6 months to a year?

 

[David Smith]

I have a good deal on a Yukon Denali. The problem is that there's a 2500.00 rebate attached that requires GM financing. For 72 months the best they can offer is 3.99%. Can someone suggest a credit union or bank for refinancing? Navy Federal has 2.79 or 3.49 depending on the term.

For those that have experience with refinancing is it even worth it at 3.99%?
Also, is it better to refinance right away or wait 6 months to a year?

I have always been told it is better to refinance sooner than later. The longer you wait, the more interest you are paying...But I have also been told that when buying new that your vehicle depreciates most in the first year or two and that could impact your refinanced interest rate...

 

[nv6425]

3.99% for 72 months is a good rate. You may find cheaper at Navy Federal or PenFed, but probably not worth the hassle.

 

[JayceeP]

I don't understand how banks in the US are offering auto loans sub-4% unless through a dealer at time of brand new purchase (in which case cost of borrowing is really built into the price).

 

[LI Tahoe]

I thought GM Financial was doing 0% for 72 months on 2017's.

Is that promo over?

 

[sickk23]

3.99% for 72 months is a good rate. You may find cheaper at Navy Federal or PenFed, but probably not worth the hassle.

I disagree. Basically 4% on a new vehicle, if his credit is good, isn't a good rate. Especially at the end of the year. Unless this is a 2018.

In April I refinanced my 2017 suburban, two months after I got it. My original rate from the dealer was 3.4% through Ally for 72mo for about $63k. I refinanced with State Farm and have 2.19% interest for 60mo.

 

[PivotalRex]

I thought GM Financial was doing 0% for 72 months on 2017's.

Is that promo over?

Denali has 0% for 60 but no rebates so I lose 4500.00 in pricing. GM is offering 2500.00 rebate on Denali's but only with their financing. I have excellent credit which is why I thought I would get a better rate than 3.99% for 72. Being told there is no better rate with that term (72 months) and the rebate.

 

[S33k3r]

Denali has 0% for 60 but no rebates so I lose 4500.00 in pricing. GM is offering 2500.00 rebate on Denali's but only with their financing. I have excellent credit which is why I thought I would get a better rate than 3.99% for 72. Being told there is no better rate with that term (72 months) and the rebate.

Look at how much you will save in interest vs. the $2500 you are losing on rebate. Also, look at the opportunity cost -- if you go for 3.99% + $2500 rebate, you get $2500 up front; if you go with a lower rate, you may save $2500 (or more), but it will be over time.

Once you have figured those things out, you'll know what to do...

 

[YukonCpt]

I just did a refi with American Airlines credit union. Was 3.99 at purchase and refi is at 1.49%.

 

[Illnasty]

3.99% for 72 months is a good rate. You may find cheaper at Navy Federal or PenFed, but probably not worth the hassle.

What! That's a terrible rate on a new car.