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668
Joined
2/1/2019
Location
Ijamsville, MD
US
I bought a $33k ish truck October 2018, almost perfect credit, $10k down and got a %7.99 rate. I jumped on the purchase because it was almost exactly what I was looking for. How would I go about refinancing? Will it hurt my credit? I just Feel 7.99 is a lot. Not struggling to make the payment just want to get it paid off quicker. 2017 ram 1500 financed through pnc bank
Luke, you can refinance your loan at any time with no penalty, as long as there isn't a stipulation in your contract which specifically forbids it. The car dealership makes a little money off your loan from the bank, too; it's called Participation. They often only earn that if you keep your loan at least three months, which is where the 3-month period comes from. Those three months won't hurt you if you choose to refi the truck; only the dealership. (Again, read your contract carefully to avoid any written-in penalties.)
Paying one loan off to refinance with another won't hurt your credit. In fact, it may raise your score thanks to a "paid off" loan. When you pay off that second loan, your credit will rise again.
The Shop
7.99% is absolutely absurd...
Go get your paper work and read it now, not later
Also if you have good credit you should have never agreed to that rate, next time shop your financing and be prepared don't let them play on your emotions.
The truck was exactly what you wanted and they knew it and played you for it.
I’d def refinance with a credit union if I were you. Now that the truck is used you may need to pay 3.99-5.99 but it’s still better than what you have. Good luck
I blast their management, finance manager, complain to the manufacturer of the car dealer, blast them on Facebook, compaint to the BBB..
Pit Row
Regardless, look at it as good lesson learned- this will make you a better person financially.
Now all that being said, there is a movement within the third party automotive finance arena where a lot of lenders are going to a 'flat" reserve. Meaning no more mark up allowed from their dealer rate,however they will pay us a "flat" percentage of the amount financed. Example-- you finance a 30,000 loan with me ,The bank charges me 4.99, You get the 4.99 , but they still pay us 5% of the amount financed (in this case 1,500). It has been working favorably for us and our customers so far, but in general the rates have crept up a bit to cover those payouts.
And AJ-- not sure where you're coming up with the idea that the OP's rate is a "buy here--pay here" rate,lol. All the "sub prime" poor credit lenders I know of, are writing their approvals at State max, which is 21% here in Pa. and "buy here-pay here" are always at state max as well. A lot of states have a much higher Maximum rate than even that !! We don't do a bunch of Subprime deals at my store (maybe 10/mo) with various Nationally known lenders ,and rarely do I get one under the 21% mark. Also note-- on subprime deals there is zero markup or reserve made.
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