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Discussion Starter · #1 ·
Hi All,

So I recently purchased a new 2018 Santa Fe SE Ultimate. In order to get the best deal price wise the dealer told me I needed to go through Hyundai Finance at a higher rate of 6.99 percent and that I needed to keep the loan for 6 months then I can go refinance at my own credit union etc.

Well my initial conversation was well I don't like that higher interest rate, I want to go with my own credit union now and they say well the price of the car is $1000 more.

So in other words, Hyundai Finance is giving my dealer $1,000 to write this loan at that rate.

I just called Hyundai Finance and was asking about this new loan and there is NO penalty to refinance at any time.

Can the dealer come back to me for that $1000 if I refinance now?
 

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I'd just walk out the door and find another dealer.
 
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Discussion Starter · #3 ·
I'd just walk out the door and find another dealer.
We have already done the deal. It was the absolute best price we could find on the car we wanted.

I am just wondering if the dealer can come back to us. I am starting to think they cannot.
 

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The House always wins, just enjoy the car. that was my thought process. You'll save a few hundred here and then they'll get you for a few grand there. But in your situation, If the contract is signed, then they can't do anything. You got the car for that price, and it is sold. At that point your hands are clean of the dealer. Just make sure when you take it in for service they put new oil in lol
 

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We have already done the deal. It was the absolute best price we could find on the car we wanted.

I am just wondering if the dealer can come back to us. I am starting to think they cannot.

If you did the deal without adding the $1K on, great. But I still wouldn't trust them since they are saying this now.
 

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I had the same deal when I purchased my car. I think it is a pretty standard Hyundai offer to get you to finance with them. Nothing shady from your dealer.

I was going to pay cash but financed it for the deal and paid it off a week later. Never heard from the dealer and its been over 2 years.
 

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I got the same deal last fall (different rate, though). The dealer would prefer that you do not pay it off right away, because it is to their benefit for you to keep the loan for at least six months. But really, you can refinance it anytime you want.


If you like the dealer otherwise, and want to extend the courtesy, then wait.
 

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Most people won't ever qualify for their 0% financing. First of all the credit score they pull is always lower than your actual score, so you'd need 820-840 to even be in the ball park of "well qualified".

6.99% is what I was financed at also.... also told to refinance in 6 months. Same for my wife's car, was told 6 months. It's some kind of standard line they use, I guess. Of course they get commissions for selling the financing to you in the first place and for the length of the term you keep their financing.

Don't know if it's just a coincidence but I tried to refinance after 2-3 months with Capital One Auto and was denied, did it again at approximately the 6 month mark and was instantly approved. Perhaps I would have had a quicker solution dealing with my credit union or some other local option but at the time Capital One was advertising the lowest rates.

Once you signed the papers and the car was yours, the dealer has nothing else to do with it. You can refinance or whatever else and they can't come back to you for any more money. The sale price was the sale price, that's all.
 

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yeah, the guy gave me a "great" deal because he was able to talk to the bank and got me 6.7% it's all the same mallarcky that you won't even know to the cent how much your REALLY paid until all is said and done. Their main goal is to put you in a car every 3 to 4 years. It's why they hate cash deals
 

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My understanding is that once the loan is “booked” you can refinance anytime

If you go to the Hyundai Finance site it should show the status of the loan and you can get the payoff in the event you just wanted to liquidate the loan and get a clean title in your name.

I recently purchased a new Tucson with a balloon payment at the end of 36 months. The balloon was approximately $16,100 in 2021. I’m paying $111 a month right now @6.39%.

I checked with State Farm today about refinancing it and their rate as 3.49%. But my payment will go up as the loan will be fully liquidated at the end of loan contract.

I talked to the salesman who has a banking background and he said I might reconsider after three months. Otherwise Hyundai doesn’t like early payoffs as the rebates are higher than the ultra low intra rates of .99%. They also like automatic payments and I do not.

I got a total of $4,750 in rebates but it would have been less had I taken the lower rates.

Bottom line, there is always a gimmick.

Considering just paying it off out of my savings. I’m torn.

Another alternative is to lease the vehicle. The rates may be more competitive. Check the residual at the end of the lease. The higher the residual the lower the lease payment.
 

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Discussion Starter · #14 ·
I ended up getting a 3.99 percent rate with my local Credit Union for 6 years. The payoff is being FedEx'ed overnight
 

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Unless your region is different, there's not $1000 tied to financing with Hyundai and that dealership lied to you. The poor competition is pretty rampant today. Sad. I'd never work at a dealership that did that to it's customers.
 

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From my experience and what I've read, you can refinance anytime you want to after originally financed with the manufacturer for a rebate as long as there is no pre-payment penalty - on the same day of the deal if you wanted to. The reason to wait for 3-6 months before refinancing is the dealer gets a "kickback" only if you keep your loan for that period of time. If you refinance before that time period, they do not get their bonus.

So, if you liked the dealer and your experience, keep the loan. If not, refinance.

I refinanced after two months as soon as I got my warranty refund last year. I didn't like my refund request experience so I didn't care if the dealer got their bonus or not.

P.S. Please correct me if I'm wrong.
 

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From my experience and what I've read, you can refinance anytime you want to after originally financed with the manufacturer for a rebate as long as there is no pre-payment penalty - on the same day of the deal if you wanted to. The reason to wait for 3-6 months before refinancing is the dealer gets a "kickback" only if you keep your loan for that period of time. If you refinance before that time period, they do not get their bonus.

So, if you liked the dealer and your experience, keep the loan. If not, refinance.

I refinanced after two months as soon as I got my warranty refund last year. I didn't like my refund request experience so I didn't care if the dealer got their bonus or not.

P.S. Please correct me if I'm wrong.
No that is pretty much spot on. The only way they could come after you is if your contract or
Paperwork dictated this time frame. Worked for Hyundai in sales for a while. The 6.99 is the given rate but I’m sure the buy rate was 4.99%

The dealer was keeping the 2% and getting a kickback on the loan of the difference. They only get this after 2-3 months of payment.

If your terms do not state you had to keep it, you can refinance now without an issue.
 

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Unless your region is different, there's not $1000 tied to financing with Hyundai and that dealership lied to you. The poor competition is pretty rampant today. Sad. I'd never work at a dealership that did that to it's customers.
Often there is a choice between special financing and cash. Put another way, you can finance at the standard rate (say, 4.9%), and get $1,000 off the price, or you can finance at the special rate (say, 0% or 0.9% for example) and not get the $1,000.
 

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I bought a Kona last week. It's always smart to go into the dealer with a financing option you can fall back on instead, and I did that in my case. I told the sales manager I had an offer from Capital One for 3.89% but wanted to see if Hyundai Finance could beat it. He came back offering me the same rate with Hyundai Finance using the $500 rebate or said I qualified for the 1.99% promotion but would lose the rebate (which I knew was the case). I opted for the lower rate, but the numbers in terms of monthly payment were about the same.

It's too bad some dealers take advantage of people. I know I've had dealers before cherry pick on the credit rating that makes them the most money so I always make sure I know what my ratings are. Most credit cards now will give you a free monthly FICO score based on one of your credit scores and that's an easy way to know where you are at before you start applying for credit.
 
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