Refinancing truck?

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
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KHI Guy
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1/28/2020 7:49am
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...
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
Something is amiss if "almost perfect credit" netted you a 7.99% interest rate. PNC is offering 3.79% - 4.09% for a 60 month refinance on a 2017 vehicle in your zip code right now. Regardless, shop different banks just like you were buying a new car.
3
seth505
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1/28/2020 7:50am Edited Date/Time 1/29/2020 9:08am
Funny, I bought a 17 Ram back in 2017 as well and financed through Ram to get the deal I wanted. The rate was high but not that high. I think you have a period where you have to make the payments (3 months from what I remember) then you are free to refinance with whoever you want. I went to my credit union and got a much lower rate after making the 3 payments on my truck. So in short, just go to a credit union with a great rate and inquire with them, it is pretty painless.
yz133rider
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1/28/2020 8:31am Edited Date/Time 1/28/2020 8:32am
I wouldnt worry about the rate, and just focus on putting more towards it each month. Get it paid off. The rate wont much matter if you intensely focus on getting it paid off. Stop giving any money to lenders (in interest and fees) and watch how much money piles on in your account.
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Falcon
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1/28/2020 9:12am
yz133rider wrote:
I wouldnt worry about the rate, and just focus on putting more towards it each month. Get it paid off. The rate wont much matter if...
I wouldnt worry about the rate, and just focus on putting more towards it each month. Get it paid off. The rate wont much matter if you intensely focus on getting it paid off. Stop giving any money to lenders (in interest and fees) and watch how much money piles on in your account.
This is true, but if it takes him a year to pay it off, the difference in the interest rate may be significant. His first year of financing $23,000 at 7.99 cost him $1,800. At 3.79% it would have been less than $900.

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.
5

The Shop

1/28/2020 10:10am
yz133rider wrote:
I wouldnt worry about the rate, and just focus on putting more towards it each month. Get it paid off. The rate wont much matter if...
I wouldnt worry about the rate, and just focus on putting more towards it each month. Get it paid off. The rate wont much matter if you intensely focus on getting it paid off. Stop giving any money to lenders (in interest and fees) and watch how much money piles on in your account.
Falcon wrote:
This is true, but if it takes him a year to pay it off, the difference in the interest rate may be significant. His first year...
This is true, but if it takes him a year to pay it off, the difference in the interest rate may be significant. His first year of financing $23,000 at 7.99 cost him $1,800. At 3.79% it would have been less than $900.

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.
Yeah the guy told me Not to Refinance for a year, who knows if that’s a tally true or not. I don’t know the ins and outs of buying vehicles. My last vehicle was through a credit union and way lower
1/28/2020 10:12am
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...
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
KHI Guy wrote:
Something is amiss if "almost perfect credit" netted you a 7.99% interest rate. PNC is offering 3.79% - 4.09% for a 60 month refinance on a...
Something is amiss if "almost perfect credit" netted you a 7.99% interest rate. PNC is offering 3.79% - 4.09% for a 60 month refinance on a 2017 vehicle in your zip code right now. Regardless, shop different banks just like you were buying a new car.
Yeah idk dealer said everybody was buying so I guess they can raise rates? Not sure, gonna look into this week though for sure
yz133rider
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1/28/2020 10:13am
If your truly worried about saving stop financing them is your best bet. Get after it, pay it down early asap. Then once its paid off, start saving for the next one and when it comes time youll be able to pay cash for the next one and pay zero in interest.
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2
1/28/2020 10:18am
yz133rider wrote:
If your truly worried about saving stop financing them is your best bet. Get after it, pay it down early asap. Then once its paid off...
If your truly worried about saving stop financing them is your best bet. Get after it, pay it down early asap. Then once its paid off, start saving for the next one and when it comes time youll be able to pay cash for the next one and pay zero in interest.
That’s true, I put a decent amount down so I’m at least not upside down on the loan from the get go, I see people do that all the time
Brad460
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1/28/2020 2:29pm
KHI Guy wrote:
Something is amiss if "almost perfect credit" netted you a 7.99% interest rate. PNC is offering 3.79% - 4.09% for a 60 month refinance on a...
Something is amiss if "almost perfect credit" netted you a 7.99% interest rate. PNC is offering 3.79% - 4.09% for a 60 month refinance on a 2017 vehicle in your zip code right now. Regardless, shop different banks just like you were buying a new car.
Agreed- poor credit gets you 7.99%...Unless you're easily scammed..
1/28/2020 6:24pm
KHI Guy wrote:
Something is amiss if "almost perfect credit" netted you a 7.99% interest rate. PNC is offering 3.79% - 4.09% for a 60 month refinance on a...
Something is amiss if "almost perfect credit" netted you a 7.99% interest rate. PNC is offering 3.79% - 4.09% for a 60 month refinance on a 2017 vehicle in your zip code right now. Regardless, shop different banks just like you were buying a new car.
Brad460 wrote:
Agreed- poor credit gets you 7.99%...Unless you're easily scammed..
770 credit score 🤷🏼‍♂️
Brad460
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1/28/2020 6:42pm Edited Date/Time 1/28/2020 6:43pm
770 credit score 🤷🏼‍♂️
I am curious then...Why in the world would you have accepted a loan at such a high interest rate? Did you even bother checking your own bank or local credit union?

7.99% is absolutely absurd...
1/28/2020 7:17pm
770 credit score 🤷🏼‍♂️
Brad460 wrote:
I am curious then...Why in the world would you have accepted a loan at such a high interest rate? Did you even bother checking your own...
I am curious then...Why in the world would you have accepted a loan at such a high interest rate? Did you even bother checking your own bank or local credit union?

7.99% is absolutely absurd...
No I didn’t, the dealership called several banks on speaker phone with me right there but It was almost An impulse buy, live and learn, won’t let that happen again, I’ll be making some calls tomorrow. my last truck was through a credit union my mom had me refinance through after a few payments now that I think of it.
1
500guy
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1/28/2020 7:28pm
Here's some advice, never ever take out a loan and not read the contract, the salesman will blow smoke up your ass but the contract holder knows exactly whats in it and will enforce it on you.

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.
1
AJ565
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1/28/2020 8:27pm
That’s almost buy here pay here dealer interest rates. I have a similar credit score and I think the highest rate I’ve had is 2.9%
1/29/2020 4:53am
500guy wrote:
Here's some advice, never ever take out a loan and not read the contract, the salesman will blow smoke up your ass but the contract holder...
Here's some advice, never ever take out a loan and not read the contract, the salesman will blow smoke up your ass but the contract holder knows exactly whats in it and will enforce it on you.

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.
Yup they got me, lesson learned
500guy
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1/29/2020 7:34am
Yup they got me, lesson learned
it's not the end of the world, read all your paperwork and develop a plan to refinance or get it paid off, You are headed in the right direction.
KennyT
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1/29/2020 7:55am
Dealers will always try and scam a buyer on interest rates. As others have said a 2.99 would have been the appropriate rate for a 770 score. I’m a car nut and usually buy one every 1-3 years. If I need financing the first thing I tell them when I sit down is what I’ll pay for the car and what rate I will accept. It saves them screwing with me going back n forth with banks. The dealer probably had you on speaker phone with his cousin 😂

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
Brad460
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1/29/2020 3:58pm
500guy wrote:
Here's some advice, never ever take out a loan and not read the contract, the salesman will blow smoke up your ass but the contract holder...
Here's some advice, never ever take out a loan and not read the contract, the salesman will blow smoke up your ass but the contract holder knows exactly whats in it and will enforce it on you.

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.
Yup they got me, lesson learned
I would file a complaint....if in fact your credit score is 770, this was unethical.

I blast their management, finance manager, complain to the manufacturer of the car dealer, blast them on Facebook, compaint to the BBB..
1
reded
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1/29/2020 4:15pm
500guy wrote:
Here's some advice, never ever take out a loan and not read the contract, the salesman will blow smoke up your ass but the contract holder...
Here's some advice, never ever take out a loan and not read the contract, the salesman will blow smoke up your ass but the contract holder knows exactly whats in it and will enforce it on you.

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.
Yup they got me, lesson learned
Brad460 wrote:
I would file a complaint....if in fact your credit score is 770, this was unethical. I blast their management, finance manager, complain to the manufacturer of...
I would file a complaint....if in fact your credit score is 770, this was unethical.

I blast their management, finance manager, complain to the manufacturer of the car dealer, blast them on Facebook, compaint to the BBB..
He had to have it and willingly signed on the dotted line, no sense in crying foul. We all learn that lesson at some point. I’ve seen car dealers bury people so deep that a fucking backhoe couldn’t get them right side up again. “A fool and his money will soon part.”
plowboy
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1/29/2020 5:20pm
My credit score sucks. Turns out not having credit cards, not owing anybody anything, saving and paying cash for stuff makes you a risk. My Grandad lied to me.Silly
1/29/2020 5:47pm
Went to pnc today and questioned why my interest was so high given the fairly large down payment, and 770 score They agreed it’s to high, but the dealer gets a kick back from that finance rate. It’s my own fault, they know I wanted that truck and I walked in there blindly, they know my type. I’m mad I have been paying so much in interest but I can only learn from this mistake. I got in touch with a local credit union today and will be refinancing at a Much lower rate soon. Thanks everyone
6
Brad460
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1/29/2020 6:04pm
Went to pnc today and questioned why my interest was so high given the fairly large down payment, and 770 score They agreed it’s to high...
Went to pnc today and questioned why my interest was so high given the fairly large down payment, and 770 score They agreed it’s to high, but the dealer gets a kick back from that finance rate. It’s my own fault, they know I wanted that truck and I walked in there blindly, they know my type. I’m mad I have been paying so much in interest but I can only learn from this mistake. I got in touch with a local credit union today and will be refinancing at a Much lower rate soon. Thanks everyone
Glad you have a plan to get out of this raw deal.

Regardless, look at it as good lesson learned- this will make you a better person financially.
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reded
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1/29/2020 6:07pm
Lesson learned. Good job!
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Yzf916
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1/29/2020 10:40pm
Yep. Just purchased a ‘19 GMC. 2.69% from my local credit union. With a 783 score. Good job at least noticing now rather than later. And lesson learned you’ll be a smarter consumer next time.
1
500guy
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1/30/2020 10:16am
Went to pnc today and questioned why my interest was so high given the fairly large down payment, and 770 score They agreed it’s to high...
Went to pnc today and questioned why my interest was so high given the fairly large down payment, and 770 score They agreed it’s to high, but the dealer gets a kick back from that finance rate. It’s my own fault, they know I wanted that truck and I walked in there blindly, they know my type. I’m mad I have been paying so much in interest but I can only learn from this mistake. I got in touch with a local credit union today and will be refinancing at a Much lower rate soon. Thanks everyone
Good job! You are headed down the right road now
SweetDaddy
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1/30/2020 10:23am
I bought a new F150 in sept. In order to get the lowest otd price I had to finance thru ford credit. The interest rate was 7% and I have 850 credit score. Paid the truck off when I got the first bill with no penalty.
OldPro277
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1/30/2020 11:33am
Went to pnc today and questioned why my interest was so high given the fairly large down payment, and 770 score They agreed it’s to high...
Went to pnc today and questioned why my interest was so high given the fairly large down payment, and 770 score They agreed it’s to high, but the dealer gets a kick back from that finance rate. It’s my own fault, they know I wanted that truck and I walked in there blindly, they know my type. I’m mad I have been paying so much in interest but I can only learn from this mistake. I got in touch with a local credit union today and will be refinancing at a Much lower rate soon. Thanks everyone
There is a lot of mis-information in this thread. I'll try to clear up some of these misconceptions. I've been an auto dealer for over 35 years, and specialize in financing. There is much more to getting a good interest rate than just a FICO score. For example, if you are a 770 with only 5 tradelines versus a "real" 770 with 25+ tradelines--who do you think is getting a better rate ? Also, debt-to-income plays a big role, as does loan-to-value , (but with 10k down ,you should have that covered), and the year of the vehicle and term of the loan all play big parts in determining rate. . Also, there are state/federal laws stating how much mark-up a dealer is permitted to make. Here in Pa. its 2 points, meaning the bank may have charged your dealer 5.99, but they are within their legal rights to charge you 7.99 and keep the spread---known as "reserve".Most lenders now keep 25% of the reserve amount while the dealer only makes 75%. Also, most lenders provide "open-ended" loans, meaning you can pay extra or pay off early without any penalties whatsoever. However , the lenders guidelines with the dealer states that the dealer loses their "reserve" if the customer pays off within 180 days or goes REPO . Thats known as a "chargeback" . That's why the salesman or F&I manager will tell you to please keep your loan for X number of days, if you hint about refinancing.
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.
2
peelout
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1/30/2020 12:26pm
a lot of dealerships will give incentives for getting the loan through them with a usually higher interest rate, after 30-60 days you can refinance. i saved almost $5k doing this on my current truck, got the rebate then refinanced elsewhere.
1
1/30/2020 5:44pm
Went to pnc today and questioned why my interest was so high given the fairly large down payment, and 770 score They agreed it’s to high...
Went to pnc today and questioned why my interest was so high given the fairly large down payment, and 770 score They agreed it’s to high, but the dealer gets a kick back from that finance rate. It’s my own fault, they know I wanted that truck and I walked in there blindly, they know my type. I’m mad I have been paying so much in interest but I can only learn from this mistake. I got in touch with a local credit union today and will be refinancing at a Much lower rate soon. Thanks everyone
OldPro277 wrote:
There is a lot of mis-information in this thread. I'll try to clear up some of these misconceptions. I've been an auto dealer for over 35...
There is a lot of mis-information in this thread. I'll try to clear up some of these misconceptions. I've been an auto dealer for over 35 years, and specialize in financing. There is much more to getting a good interest rate than just a FICO score. For example, if you are a 770 with only 5 tradelines versus a "real" 770 with 25+ tradelines--who do you think is getting a better rate ? Also, debt-to-income plays a big role, as does loan-to-value , (but with 10k down ,you should have that covered), and the year of the vehicle and term of the loan all play big parts in determining rate. . Also, there are state/federal laws stating how much mark-up a dealer is permitted to make. Here in Pa. its 2 points, meaning the bank may have charged your dealer 5.99, but they are within their legal rights to charge you 7.99 and keep the spread---known as "reserve".Most lenders now keep 25% of the reserve amount while the dealer only makes 75%. Also, most lenders provide "open-ended" loans, meaning you can pay extra or pay off early without any penalties whatsoever. However , the lenders guidelines with the dealer states that the dealer loses their "reserve" if the customer pays off within 180 days or goes REPO . Thats known as a "chargeback" . That's why the salesman or F&I manager will tell you to please keep your loan for X number of days, if you hint about refinancing.
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.
Great info thanks! Appreciated
mikec265
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Edinboro, PA US
1/30/2020 7:25pm
I bank at PNC but get my loans at a smaller bank. PNC and other large banking chains always had higher rates whenever I checked. Some people swear by credit unions for better rates, but I have no experience with them.
1

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