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> Saying hello and.. I have a question already
ttttrigg3r
post Aug 31 2014, 05:46 PM
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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.


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Alex2013GT
post Aug 31 2014, 07:12 PM
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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.


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ttttrigg3r
post Aug 31 2014, 07:22 PM
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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$.


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elantragt
post Sep 1 2014, 11:42 AM
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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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ttttrigg3r
post Sep 1 2014, 12:20 PM
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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!


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trololololo
post Sep 1 2014, 03:32 PM
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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


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Alex2013GT
post Sep 1 2014, 06:52 PM
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QUOTE (ttttrigg3r @ Sep 1 2014, 01:20 PM) *
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.


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FurunoFan
post Sep 2 2014, 05:50 AM
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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.


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ttttrigg3r
post Sep 2 2014, 12:49 PM
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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.


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Alex2013GT
post Sep 2 2014, 09:14 PM
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QUOTE (ttttrigg3r @ Sep 2 2014, 01:49 PM) *
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.


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ttttrigg3r
post Sep 2 2014, 11:50 PM
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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.


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trololololo
post Sep 3 2014, 02:48 AM
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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


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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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