Anyone ever pay off your truck early and get threatened by dealership that you are responsible for a penalty?

[Lungs414]

So I decided to pay off truck before 6 months and dealer is threatening me with a penalty. On the finance contract , it clearly states no penalty for early payoff, but dealer is threatening with a penalty. I told them I would probably payoff early, and apparently I signed something one of many pages I signed saying I wouldn't. NYS is a no prepayment penalty state. Wondering if they slip that in if it's legal to sign my rights away.
Anyone with experience in this?

 

[Willwork4truck]

So I decided to pay off truck before 6 months and dealer is threatening me with a penalty. On the finance contract , it clearly states no penalty for early payoff, but dealer is threatening with a penalty. I told them I would probably payoff early, and apparently I signed something one of many pages I signed saying I wouldn't. NYS is a no prepayment penalty state. Wondering if they slip that in if it's legal to sign my rights away.
Anyone with experience in this?

Cant help you with NY state but here in NC one of the incentives was a $500 Chrysler Corp financing deal, had to keep the financing with them for 90 days or lose the $500.
I paid off after like 6 months, never heard a peep from anyone other than what I expected, the payment confirmation.

 

[derp]

have them write out the exact number for the penalty and the specific cause/supporting document reference.

if they do at least you will have concrete information to make your next actions on.

 

[Lungs414]

Wasn't Chrysler, Private bank but contract says no pre pay penalty. I am a little worried about other paper I signed.

 

[Lungs414]

Anyway it sucks but I do love the truck.

 

[WW2]

Im in NC and took advantage of the $500 rebate....I plan to pay it off in 60 days or so..... Im curious to see if there is any backlash... what can they do ??? not release the title ??? doubt it.....shall see

 

[RJS]

So I decided to pay off truck before 6 months and dealer is threatening me with a penalty. On the finance contract , it clearly states no penalty for early payoff, but dealer is threatening with a penalty. I told them I would probably payoff early, and apparently I signed something one of many pages I signed saying I wouldn't. NYS is a no prepayment penalty state. Wondering if they slip that in if it's legal to sign my rights away.
Anyone with experience in this?

Back in August when I bought my 19 Laramie Sport, I opted for the $500 rebate and used Chrysler Capital set up by the Dealership. There finance guy said that I would need to make 6 payments to not have an early payoff penalty. He did instruct me to pay all but the last five payments initially to keep the interest down. I did that on the first payment to Chrysler Capital but noticed there was a place on the website that said I could request a quote to pay off the loan, which I did. They said I could pay it all off in one lump sum and the number they gave me was the last 5 payment total plus about $10 which I assumed would have been the accrued interest on that amount.

I wrote Chrysler Credit a check for the total amount they requested ( 5 payments + $10 ) and three weeks later, 11/1/19 I received a letter in the mail releasing my title to me as the loan was paid in full. I haven't heard anything from the dealer and don't expect to. If I due, they can go pound sand as I own the truck free and clear.

So bottom line, I made two payments and my truck is paid for with a clear title. I think I could have done it in one payment if I had paid closer attention to the documents on the Website.

Note - I did all of my transactions with Chrysler Capital on there website and sent the two checks directly to them, no involvement with the dealership or anyone personally at CC.

 

[KRField]

Dealerships use this as a scare tactic to ensure they get their commission check from the lending agency. Once the contract is done with the lender the dealership has nothing more to do with the financing. They have their money from the lender for the truck.


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[TWRam]

Sounds like more ignorant dealer BS to me. What does the dealer care if you pay off your loan early that you obtained through a 3rd party bank.....unless the dealer finance guy sourced the financing and the bank owes them a commission after XXX number of days?

 

[Raylan GIvens]

I'm not a lawyer, but "apparently I signed something one of many pages I signed saying I wouldn't" sounds like an important detail from a legal perspective. What exactly did you sign saying you would not payoff the loan early?

 

[MFALRAM]

I’m from NY and I went through the dealership for loan after a few months I refinanced to my bank. The dealership is mad because most of their profit on a new truck is from the deals they have going on with the banks on the loans . They will lose profit if you pay off early and if they have you a great deal off the truck they will be really hurting. They got mad I refinanced to bad for them. I didn’t get hit with any fee .

 

[klail]

So I decided to pay off truck before 6 months and dealer is threatening me with a penalty. On the finance contract , it clearly states no penalty for early payoff, but dealer is threatening with a penalty. I told them I would probably payoff early, and apparently I signed something one of many pages I signed saying I wouldn't. NYS is a no prepayment penalty state. Wondering if they slip that in if it's legal to sign my rights away.
Anyone with experience in this?

They always threaten with an early payoff penalty but 99% of loans don't have them. They just don't like to the chargebacks they receive due to the early payoff. If your loan document says no prepayment penalty, pay that sucker off! What a great feeling!

 

[Klute]

I got $1K rebate to finance with Chrysler. Finance Mgr told me I had to wait 6 months. I looked over the finance contract and the early payoff box was checked meaning I could payoff/refi w/o any problems! I refi'd and never made a payment to Chrysler finance. That's been 6 months ago.

 

[Maconi]

The problem with this thread is you're admitting that you signed documents that you didn't fully read/understand. Then you take the word of someone (dealership) who does not have your best interest in mind when they say you'll be penalized for paying off early.

Either read through the documents you signed yourself to see if such a penalty exists, scan/post it here for us to look over (personal information censored), or find an attorney who is willing to look into it for cheap.

If I had to guess, they're lying for their own benefit. The last car I financed (through a dealership) I remember the finance manager telling me I was crazy to pick a 3 year loan and that I should just go with a 4-5-6 year one (he said, multiple times, that I wasn't going to get a better interest rate than he was offering for the 4 year). Of course once I got the final offer on the 3 year loan the interest rate was much lower than he was pitching on the 4 year loan. Never trust a stealership.

 

[Lungs414]

Genius . Why didn't I think of that.

 

[drstein]

Dealerships use this as a scare tactic to ensure they get their commission check from the lending agency. Once the contract is done with the lender the dealership has nothing more to do with the financing. They have their money from the lender for the truck.


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Exactly.

 

[StuartV]

I don't get y'all.

You get financing through a dealership. They tell you you can't pay it off in less than 6 months (or whatever). You do it anyway.

Of course YOU don't get hit with a penalty. The dealer loses commission. So, you made a deal with the dealer that included them getting part of their compensation on the back end, from the finance company. And then you renege on the deal you made and you cost the dealer some money.

How do you figure that is right?? It may be legal, but how is it right? And then you want to call them a stealership??

I really like that idea that @RJS posted. Pay them all but the last 5 payments right up front. Then make the next 5 payments, so it's paid off in 6 months, and the amount of interest paid is virtually nothing. Total chump change. And the dealer still gets the commission check that you agreed to letting them get.

Paying it off early is literally taking money back from the dealer. Money that you agreed to doing your part to let them get when you signed the deal up front. Money that they get that costs you virtually nothing (if you do it the way RJS posted).

 

[Klute]

I don't get y'all.

You get financing through a dealership. They tell you you can't pay it off in less than 6 months (or whatever). You do it anyway.

Of course YOU don't get hit with a penalty. The dealer loses commission. So, you made a deal with the dealer that included them getting part of their compensation on the back end, from the finance company. And then you renege on the deal you made and you cost the dealer some money.

How do you figure that is right?? It may be legal, but how is it right? And then you want to call them a stealership??

I really like that idea that @RJS posted. Pay them all but the last 5 payments right up front. Then make the next 5 payments, so it's paid off in 6 months, and the amount of interest paid is virtually nothing. Total chump change. And the dealer still gets the commission check that you agreed to letting them get.

Paying it off early is literally taking money back from the dealer. Money that you agreed to doing your part to let them get when you signed the deal up front. Money that they get that costs you virtually nothing (if you do it the way RJS posted).

IF it is in the contract, then yes. If they are just 'telling' you to pay 6 months, then that means nothing, it's not legally binding. I won't feel sorry for the dealership. They are already making their money.
If they were not making money THEY WOULD NOT SELL YOU THE TRUCK, simple.

 

[19ramsport]

Mine asked me to wait until 3 months until I refinanced, and I did.

 

[VaderRebel]

I don't get y'all.

You get financing through a dealership. They tell you you can't pay it off in less than 6 months (or whatever). You do it anyway.

Of course YOU don't get hit with a penalty. The dealer loses commission. So, you made a deal with the dealer that included them getting part of their compensation on the back end, from the finance company. And then you renege on the deal you made and you cost the dealer some money.

How do you figure that is right?? It may be legal, but how is it right? And then you want to call them a stealership??

I really like that idea that @RJS posted. Pay them all but the last 5 payments right up front. Then make the next 5 payments, so it's paid off in 6 months, and the amount of interest paid is virtually nothing. Total chump change. And the dealer still gets the commission check that you agreed to letting them get.

Paying it off early is literally taking money back from the dealer. Money that you agreed to doing your part to let them get when you signed the deal up front. Money that they get that costs you virtually nothing (if you do it the way RJS posted).

And any of us are supposed to feel sorry for the Dealers? Buddy, give your head a shake... they'll be fine. I say take every advantage and save every penny you can when buying a new vehicle, it's cat and mouse when doing the deal, I like being the cat.