I can pay cash, but the dealer offers $1,000 off if I finance through Hyundai. Is there any reason not to do it and just pay it off after a few weeks?
Check the numbers. When I did this, financing was the better deal. Your experience may vary, but 0% interest is like free money.
HyundaiAnn said:
Check the numbers. When I did this, financing was the better deal. Your experience may vary, but 0% interest is like free money.
Exactly. Put the cash in a high-yield savings account at 4% and you’ll still come out ahead while making payments.
I went for it since they offered me $2,500 off if I financed. They told me I had to keep the loan for three months, so I’m sticking with that. My minimum finance amount was $7,500.
Rowland said:
I went for it since they offered me $2,500 off if I financed. They told me I had to keep the loan for three months, so I’m sticking with that. My minimum finance amount was $7,500.
They can suggest keeping the loan for three months, but they can’t enforce it. They only say that because their commission from the bank kicks in after 90 days.
Rowland said:
I went for it since they offered me $2,500 off if I financed. They told me I had to keep the loan for three months, so I’m sticking with that. My minimum finance amount was $7,500.
Yeah, they get a cut if you keep it for 90 days. Just finance it, and then pay it off once the account shows up. They can’t do anything about it.
@MotorMan
Or you could call them and say, ‘If you want me to wait 90 days, maybe toss me a few hundred bucks…’
Adam said:
@MotorMan
Or you could call them and say, ‘If you want me to wait 90 days, maybe toss me a few hundred bucks…’
That sounds like extortion.
Adam said:
@MotorMan
Or you could call them and say, ‘If you want me to wait 90 days, maybe toss me a few hundred bucks…’
That sounds like extortion.
That’s not what extortion means… try again.
@MotorMan
And they might refuse to sell you a car in the future.
Rowland said:
I went for it since they offered me $2,500 off if I financed. They told me I had to keep the loan for three months, so I’m sticking with that. My minimum finance amount was $7,500.
I did the same thing at Kia. The finance manager actually told me to pay it off right away since there’s no profit for the dealership on a $7,500 loan.
I financed mine, then paid it off in under a month. I think I paid around $20 in interest.
It might ding your credit slightly, but if you’re eligible for low or zero interest, it’s likely worth it.
From what I’ve read in other discussions, Hyundai financing doesn’t seem to have any prepayment penalties. You can pay it off as soon as the loan is set up.
The claims about waiting a minimum of a few months seem to be related to dealership commissions. Other than a small impact on your credit score due to the inquiry, it seems like a smart way to take advantage of the incentive.
I financed and paid it off after six weeks. I was told to wait until I received my DMV card for the plates before paying it off. Apparently, paying it off before the DMV processes everything can cause delays. I’m not sure how true that is, but I waited just in case.
@jameshenderson
That’s not an issue. Once the finance company clears your obligation, they’ll send you a letter and the title. Take those to the DMV, and you’re good to go. I’ve done this multiple times.
If the interest is low or zero, you’re better off financing and investing the cash in something like an S&P 500 index fund.
In the UK, this is pretty common. Salespeople even recommend it sometimes. I financed £3,000, paid the rest upfront, and got a £2,000 discount. I paid it off a week later and only spent about £1 in interest.
I plan to pay mine off after getting my plates. I asked the finance manager directly if there were penalties for early repayment, and he said there weren’t. It’s always good to ask and double-check the paperwork.