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I’ve been wondering if you could tell the dealer that you’d like to finance and then just pay the loan off in the short term, whether it be immediately or in a
by 7speter 4y ago
I’ve been wondering if you could tell the dealer that you’d like to finance and then just pay the loan off in the short term, whether it be immediately or in a matter of months, or if there are normally provisions in car loans that prevent that?
- I_dev_outdoors 4y agoRead the contract, mine didn't have it though (2020).
- jcampbell1 4y agoPrepayment penalties are rare outside of subprime/pay-and-go loans. When I worked at Ford Credit the max dealer markup on financing was 2%, and the dealer got their commission on the rate markup up front. Taking a crappy interest rate and prepaying is a sound negotiation tactic because it is the financing company that takes the hit.
- woobar 4y agoUsually not. I've once financed a car just to get an additional rebate (few extra grands to finance through manufacturer) and paid it off next month.
- gnicholas 4y agoI’ve done this. They asked me to leave the loan outstanding for two months and I ran the numbers on the interest that would accrue. They agreed to deduct that amount (several hundred dollars) from the purchase price. Of course, this was pre-supply chain crunch, so now you’d probably be best off not saying you’d prepay and just doing it ASAP