Saying hello and.. I have a question already
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Saying hello and.. I have a question already
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Aug 31 2014, 05:46 PM
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Club Newbie Group: Members Posts: 12 Posts Per Day: 0.00 Thanks Received: 0 Trader Stats: 0 (0%) Joined: 31-August 14 Member No.: 18,621 |
Hello all. I just bought a Hyundai Elantra GT 6speed. Just thought I'd join this cool forum to learn more.
I have a question already, but it's not anything related to the Elantra. It has to do with auto loans and such. If this is the wrong spot or if there's a better subforum for this, I'd really appreciate some help. I financed a new car with my brother as cosigner. There were some rebates and discount for my car and I took out a first time buyer loan. When I asked the finance person if it's ok to pay off my loan early, she says I have to wait 6 months before doing that or else I will void my rebate and will have to pay back the money which is about $2700. This sounds kind of fishy to me. I was wondering if anyone else heard of this before, or am I getting scammed here. -------------------- A proud member of the club.
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Aug 31 2014, 07:12 PM
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GT for life! Group: VIP Members Posts: 6,303 Posts Per Day: 0.90 Thanks Received: 478 Trader Stats: 2 (100%) Joined: 27-January 05 From: Greenville, SC Member No.: 34 Mood: Optimistic |
First, welcome to the club!
Did you finance through Hyundai? There are often times certain rebates associated with financing through Hyundai which it is very possible you need to keep it there for a certain period of time before paying off or refinancing with someone else. -------------------- Please consider helping keep the club online and independent. Donate here to help the club.
Current Car: 2013 Hyundai Elantra GT, 6 spd manual w/ the style and tech packages Previous Hyundai's: 2011 Hyundai Sonata SE in Venetian Red; 2006 Hyundai Sonata GLS, 3.3L V-6 in Ebony Black; 2004 Elantra GT, 5 spd manual in tidal wave blue |
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Aug 31 2014, 07:22 PM
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Club Newbie Group: Members Posts: 12 Posts Per Day: 0.00 Thanks Received: 0 Trader Stats: 0 (0%) Joined: 31-August 14 Member No.: 18,621 |
I got the loan from Garden Grove Hyundai which is the dealer I bought from. There's nowhere it on the contract it states what rebates is what. It just says "Manufacturer rebate" 2750$.
-------------------- A proud member of the club.
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Sep 1 2014, 11:42 AM
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Club Founder Group: Admin Posts: 21,359 Posts Per Day: 3.04 Thanks Received: 2809 Trader Stats: 16 (100%) Joined: 23-December 04 From: Maryland Member No.: 1 Mood: Okay |
Doesn't seem unreasonable having to pay off the loan after a minimum of 6 months. Are you in a position to actually do that?
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Sep 1 2014, 12:20 PM
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Club Newbie Group: Members Posts: 12 Posts Per Day: 0.00 Thanks Received: 0 Trader Stats: 0 (0%) Joined: 31-August 14 Member No.: 18,621 |
I'm in a position to pay within the first month.
Wow I went back to ask the same finance person some questions. She's now saying she recommends 6 months, but now the minimum is 3 months. WTH. Something is up! -------------------- A proud member of the club.
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Sep 1 2014, 03:32 PM
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Unrustled Jimmy Group: Lifetimer Posts: 13,717 Posts Per Day: 1.96 Thanks Received: 166 Trader Stats: 1 (100%) Joined: 28-January 05 From: neither here nor there, va Member No.: 165 Mood: Forgotten |
its about collateral and debts... if you care to research how the credit game is played..
in simplist terms, your loan is a product with a projected value. they dont really care about the goods (car) but what that debt means to them. your 16k-20k car is a 30k Asset (product) that will transfer thru a dozen or so hands and you wont even know it. i know from working at a used car broker that every purchase had at least 4 different banks involved before the first physical payment is ever made... even with a zero percent interest rate the picture becomes so much bigger they can actually make investments based on a guaranteed percentage of defaults and penaltys.. in addition recovery of a $10000 balance asset becomes $14000 magically EVEN after the vehicle is sold -------------------- Oh no, I'm so sorry... the correct answer is The Moops.
The packaging clearly stated '100'. I'm short ONE luft balloon. |
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Sep 1 2014, 06:52 PM
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GT for life! Group: VIP Members Posts: 6,303 Posts Per Day: 0.90 Thanks Received: 478 Trader Stats: 2 (100%) Joined: 27-January 05 From: Greenville, SC Member No.: 34 Mood: Optimistic |
I'm in a position to pay within the first month. Wow I went back to ask the same finance person some questions. She's now saying she recommends 6 months, but now the minimum is 3 months. WTH. Something is up! I wouldn't start jumping to conclusions just yet. Do some research here to figure out what rebates you received. There are normally certain rebates just for folks that finance with HMFC. Based on the amount of rebates you received, it seems quite likely that you received rebates for financing through HMFC. I would assume in order to retain those rebates you need to finance for a certain period of time. 3 months (90 days) seems like it would be the minimum term to keep the rebates, so I don't sense anything fishy there. But what if someone paid it off in 89 days and now lost their rebates. Now they are pissed off and come in to scream at the dealership as its "their fault" that the individual paid it off a day too early. So in order to avoid that possibility, they tell the consumer that they recommend waiting 6 months. This way they help to avoid the potential of someone voiding certain rebates by paying it off before the 90 day period. Personally, unless I'm proved otherwise, I tend to assume people are honest. So unless there is a reason for you to distrust this lady, I would assume she is telling the truth. -------------------- Please consider helping keep the club online and independent. Donate here to help the club.
Current Car: 2013 Hyundai Elantra GT, 6 spd manual w/ the style and tech packages Previous Hyundai's: 2011 Hyundai Sonata SE in Venetian Red; 2006 Hyundai Sonata GLS, 3.3L V-6 in Ebony Black; 2004 Elantra GT, 5 spd manual in tidal wave blue |
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Sep 2 2014, 05:50 AM
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J.Electron-Elantra 2013 GT Group: Lifetimer Posts: 594 Posts Per Day: 0.14 Thanks Received: 120 Trader Stats: 1 (100%) Joined: 24-September 12 From: Delaware Member No.: 13,648 Mood: Happy |
I always pay my car loan off early but not that fast. To help your credit you should always wait 12 months at least anything less will not help but might hurt your credit. As far as losing the rebates, I agree with Alex. The have very to gain by misleading you.
-------------------- A proud member of the Elantra club.
2013 Elantra GT 6-Sp M/T w/Style 2008 Nissan Versa SL |
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Sep 2 2014, 12:49 PM
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Club Newbie Group: Members Posts: 12 Posts Per Day: 0.00 Thanks Received: 0 Trader Stats: 0 (0%) Joined: 31-August 14 Member No.: 18,621 |
yeah thanks I'll take your advice for it and keep the loan for a bit.
What if for the first payment I dump a big amount of money. Let's say I owe $10000. If I pay $8000 the first month, would that lower the total interest I would have to pay? I figure instead of them charging interest on 10000$ it'll be just 2000$. I wouldn't have a problem with holding onto a loan that's only 2000$ for a long time. I did not know that paying off a loan early can hurt your credit. -------------------- A proud member of the club.
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Sep 2 2014, 09:14 PM
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GT for life! Group: VIP Members Posts: 6,303 Posts Per Day: 0.90 Thanks Received: 478 Trader Stats: 2 (100%) Joined: 27-January 05 From: Greenville, SC Member No.: 34 Mood: Optimistic |
What if for the first payment I dump a big amount of money. Let's say I owe $10000. If I pay $8000 the first month, would that lower the total interest I would have to pay? I figure instead of them charging interest on 10000$ it'll be just 2000$. I wouldn't have a problem with holding onto a loan that's only 2000$ for a long time. Yes, if you pay off a big chunk that would reduce the principal amount which would in turn reduce the interest you are paying. Out of curiousity, what is the interest rate? Car loans should be at a fairly low rate so the interest may not be all that much. -------------------- Please consider helping keep the club online and independent. Donate here to help the club.
Current Car: 2013 Hyundai Elantra GT, 6 spd manual w/ the style and tech packages Previous Hyundai's: 2011 Hyundai Sonata SE in Venetian Red; 2006 Hyundai Sonata GLS, 3.3L V-6 in Ebony Black; 2004 Elantra GT, 5 spd manual in tidal wave blue |
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Sep 2 2014, 11:50 PM
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Club Newbie Group: Members Posts: 12 Posts Per Day: 0.00 Thanks Received: 0 Trader Stats: 0 (0%) Joined: 31-August 14 Member No.: 18,621 |
I got hit with the 9.99% even with a cosigner. They said that's the standard for first time buyers, so being the trusting guy I am, I think I got screwed with that one. Or maybe I didn't. I just know that 9.99% is a really high interest rate. However I just took it because I figure I was going to pay the car off early anyways.
-------------------- A proud member of the club.
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Sep 3 2014, 02:48 AM
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Unrustled Jimmy Group: Lifetimer Posts: 13,717 Posts Per Day: 1.96 Thanks Received: 166 Trader Stats: 1 (100%) Joined: 28-January 05 From: neither here nor there, va Member No.: 165 Mood: Forgotten |
never heard of a first time buyers rate... must be new.
i think mine with the focus was like 14 iirc my wife's edge was 7.9 and her credit was impeccable i understand why they do it, but it just seems messed up charging more interest to ppl with less money/bad credit history is it a punishment to the poor guy that fell on hard times, or a reward for the others who can drop $6k as a down payment? i know risk and all that... but how does the poor guy end up paying thousands more make sense... credit trustworthyness i guess... wish he could recoup at end of term lol -------------------- Oh no, I'm so sorry... the correct answer is The Moops.
The packaging clearly stated '100'. I'm short ONE luft balloon. |
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