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

Raydar

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My dealer gave me a 5.2% rate through a third party lender. This with a ~800 credit score.
Think I felt bad for re-financing? Not for a millisecond.
My credit union even gave me a "new vehicle" rate. Said that people do this all the time.
And make no mistake... the dealer will bend you over at every available opportunity. I feel exactly zero remorse, getting a break whenever/however I can.
 

StuartV

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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.

I said it's legal. It's about doing what is right - i.e. living up to your word - doing what you said you'd do. Some people will honor their word, even if they are not legally bound to do so. My dealer told me they'll lose their commission from the finance company if I pay it off within 6 months, so I agreed not to do that. I didn't have to sign a paper stating that. I'm not legally bound to it, but I will honor my word, nonetheless.

"Making their money" includes making the commission check from the finance company. If they gave you a REALLY good deal, that commission check that you are taking away might be half the money they were going to make. Or even all of it. But, hey, if you feel okay with lying to the dealer and costing them part of the money they were supposed to make (just so you can save a few dollars on interest), then there is nothing else I can really say.

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.

How much are you saving if you pay it all off today versus if you pay all but 5 payments, and then pay those over the next 5 months? If you agreed to a deal that included not paying it off for 6 months, and then you pay it off early anyway, how much is not living up to what you agreed to worth to you?

People want to b!tch about dealers lying to them and then they turn around and lie to the dealer. "No, I won't pay it off for 6 months." [runs right out and pays it off immediately] It's hard (for me) to get TOO pissed at dealers for lying when I know people are not only lying to them, too, but taking real money out of the dealer's pocket just to save themselves pennies.
 

Klute

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Yep. "Screw any and everybody else, if it helps me." It seems it's a pretty common way of life these days, for a lot of people. :cry:

You must believe that the dealer is going to keep their word if you have any problem with your truck. I assume you have never been screwed over by a dealer. You are a dealer's wet dream.
 

StuartV

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You must believe that the dealer is going to keep their word if you have any problem with your truck. I assume you have never been screwed over by a dealer. You are a dealer's wet dream.

First, I believe in keeping my word, even when other don't.

Second, I have bought at least 7 brand new trucks over the last 20-something years, from at least 4 different dealers. And I used at least 3 Dodge dealers for warranty and service work in the last 10 years that were not my selling dealership. So far, out of all those, 1 dealership turned out to be absolutely terrible - the Dodge dealer in Tallahassee, FL - their service department is AWFUL. They screwed me around more than once and they have also screwed over my dad on his Dodge minivan, too. They are TERRIBLE.

But, every other dealership I have dealt with has been great. Other than the one in Tallahassee, I have been very well taken care of. My '09 RAM had the lifetime MaxCare warranty and I got a ton of stuff fixed over the 10 years I had it, without having any hassle or paying anything but my deductible. And that was mostly by dealers I didn't even buy the truck from. The dealer I bought my '09 from was too far away from where I lived to go to them for service or warranty work. But, when Dodge voided my powertrain warranty because I didn't get the 5 year inspection, my original selling dealer bent over backwards (at the 6 year mark, mind you) to get my warranty reinstated for me (which they were able to do because it was documented in their system that I had had my truck serviced at my local Dodge dealer during the time window when the 5 year inspection was due - that dealer just didn't do the inspection).

Before that, I had Fords. I had an '03 with the (POS) 6.0L PSD. That Ford dealer bent over backwards to eventually get Ford to buy that truck back and I got a brand new '04 out of that deal with no additional out-of-pocket.

Maybe if you're constantly getting screwed over by dealerships, it's got something to do with the karma that you're walking in with...?
 

Willwork4truck

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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
the dealer just said I'd be charged back the $500 if I pd early. Not sure how but that's what they said. What's 30 days wait anyway...
 

WW2

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the dealer just said I'd be charged back the $500 if I pd early. Not sure how but that's what they said. What's 30 days wait anyway...
How could they possibly do that ???? The payoff number is Gospel...they cant just add $500...and do what ??? hold the title until you pay it....no way in hell
 

Willwork4truck

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How could they possibly do that ???? The payoff number is Gospel...they cant just add $500...and do what ??? hold the title until you pay it....no way in hell
No idea. It didnt matter to me cause I waited till day 91 and switched.
 

Raydar

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Yep. "Screw any and everybody else, if it helps me." It seems it's a pretty common way of life these days, for a lot of people. :cry:

FWIW, my refinancing, not refinancing, or paying off early, was never discussed with my dealer. Verbally or contractually.
I was only halfway considering a re-fi (or a payoff) and then the bank showed me a button that said "payoff amount".
If you offer it, I'm going to go for it.
But thanks for being judgmental, just the same. As I said... no remorse.
 

klail

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How could they possibly do that ???? The payoff number is Gospel...they cant just add $500...and do what ??? hold the title until you pay it....no way in hell


Loan Balance: $45,000
Accrued interest: $150 (amount accrued since last payment)
Any accrued fee: $500 (only if there was some type of fee/late charge)
Total Loan Payoff: $45,650

My credit union never charged fees like that but that's how it would alter the loan payoff. The title would not be released if it was completely paid. Once the finance company received their payoff with fee, they would then do a chargeback to the dealership less $500 which the dealership would get to keep.
 

Psyonic64

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My dealer gave me a 5.2% rate through a third party lender. This with a ~800 credit score.
Think I felt bad for re-financing? Not for a millisecond.
My credit union even gave me a "new vehicle" rate. Said that people do this all the time.
And make no mistake... the dealer will bend you over at every available opportunity. I feel exactly zero remorse, getting a break whenever/however I can.

Same - sale price and incentives were dependent upon financing through them. APR was 5.3% despite 826 credit rating. They wouldn't negotiate even though they advertised 0% /72.
I'll have a clear conscience when I re-finance.
 

StuartV

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FWIW, my refinancing, not refinancing, or paying off early, was never discussed with my dealer. Verbally or contractually.
I was only halfway considering a re-fi (or a payoff) and then the bank showed me a button that said "payoff amount".
If you offer it, I'm going to go for it.
But thanks for being judgmental, just the same. As I said... no remorse.

If they didn't discuss with you to not pay it off early, then obviously there is nothing wrong with refinancing it or paying it off immediately. If that shoe doesn't fit you, don't try to put it on...

You were the one who said:

I feel exactly zero remorse, getting a break whenever/however I can.

You get your breaks whenever/however you can. I got some great breaks from my dealer when I bought mine. AND, they told me that if I refinanced (or paid off early) within 3 months, they would lose their commission from the finance company - so I told them I wouldn't do that. I try to be a man of my word, so even though I COULD give myself a break and refinance it sooner, to save a couple of dollars in interest, I don't take my breaks whenever/however I can. I keep my word, even though I'm not legally obligated to.

But, you do you.

Same - sale price and incentives were dependent upon financing through them. APR was 5.3% despite 826 credit rating. They wouldn't negotiate even though they advertised 0% /72.
I'll have a clear conscience when I re-finance.

So, you don't LIKE the deal that you agreed to. Did they tell you that you can't refinance or pay it off within a certain timeframe? If that was not part of the discussion, then obviously there is nothing wrong with doing that. If that WAS part of the discussion, then what I'm hearing is that you agreed to a deal, but because you don't LIKE the deal, you feel justified in not holding up your end of it?

Anybody with half a clue understands that when a dealer says "I'll sell you the truck for this price, but it's contingent on financing through us" that what that means is they have to make money somehow or they'll go out of business. So, they are offering to make less on the front end in exchange for making a little more on the back end. If you take that deal, you (should) KNOW that that is what is happening. You're getting a break on the upfront price in exchange for using their financing for 90 days or 6 months or however long they specify - because they are going to make some money later, based on your financing going through them.

If you take the deal and then pay it off early, you are knowingly screwing the dealer out of part of the money that you agreed to let them earn. And why? To save a little bit of money for yourself? Because some other dealer screwed you in the past, so you think that makes it okay to screw a different dealer yourself? If this same dealer screwed you in the past, why are you buying another vehicle from them??

If you were selling lumber and a customer came in and said they want to buy a truckload of lumber every month for the next year, but they were short on cash right now because they are just getting their construction business going, to get that sale, you might say "I'll tell you what, I'll sell you the first 2 loads for 20% off, if you'll agree to buy the next 10 loads at 2% higher."

How would you feel if that customer took the first 2 loads (at 20% off) and then changed to buying their lumber from someone else after that? And they tell you "I'm not legally bound to keep buying from you." And, "my last lumber supplier screwed me over, so I have no remorse in screwing you over."
 

Klute

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Don't feel bad for the dealers, they know the game and hoping you just keep their high-interest rate for rebate.

One barrier noted in the article to refinancing is a prepayment penalty. I can't imagine taking a loan that has one.

 

RSConsulting

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First off - with a 750 score (even though their weird FICO For Car Loans said 680) - I still got jammed with 8.9% APR from Chrysler Capital. I financed $19K on a 47K "out the door" price with my $15K trade ($67K sticker - that they knocked $10K off of).

SCREW CHRYSLER FINANCE and their 8.9%. I would (and could) have paid ALL CASH - but my accountant wanted me to expense 1/2 NEXT YEAR, instead of ALL this year.

Now, my contract says:

You May Prepay: You may pre-pay all or part of your Principal Balance at any time. If the contract is paid in full within six months after the date you sign it, we may impose an acquisition charge, not exceeding $75, for services performed on your behalf for processing this contract. If you pre-pay, you must pay the earned and unpaid part of the finance charge and all other amounts due up to the date of your payment.

Hmmmm.

Similar to the mngr taking off all the rebates - and telling me he's now at a loss - I have ZERO FORNINCATIONS TO GIVE about them losing the points on the finance. My last dealer, told me he was "reducing my interest by 2% (on my Capital One financing)" to entice me to pay MSRP on my Honda Extended Warranty. He didn't have the POWER to lower my notes interest, he PUT 2 POINTS ON THE NOTE, which he gladly gave up to make the margin on the extended warranty.

I find it HIGHLY UNLIKELY my stealership is going to come after me for the $75, if I pay the note off earlier than 6 months, nor do I believe EVEN IF THEY DO - that they will throw it into collections to get it.

Now - how many of us READ EVERY PARAGRAPH OF SMALL PRINT in the closing room? By the time I got done with my deal, and waiting for the finance manager - I was like - "HOW MANY MORE PAPERS DO I HAVE TO SIGN?".

I was already whippin pizzed at 8.9% - which they will MAYBE see 6 payments until it's gone (and maybe even LESS TIME, if I want to get my accountant riled up about it).

Rick
 

d19r93

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Wow. I feel blessed. Chrysler Capital approved a 0%/72 for me, when I was 23 (25 now), and had a ~750 credit score.
 

MQQSE

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So OP, you're willing to sift through the posts here about your issue but you're not willing to read your own contract to see what it says? Sounds like a Millennial to me...

I pay cash for all my vehicles and if you're financing you don't have enough money to buy a new truck. I know facts and the truth hurt so sorry in advance.
 

Ramster

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So OP, you're willing to sift through the posts here about your issue but you're not willing to read your own contract to see what it says? Sounds like a Millennial to me...

I pay cash for all my vehicles and if you're financing you don't have enough money to buy a new truck. I know facts and the truth hurt so sorry in advance.

You must be loaded. I'm guessing you paid cash for your home too?
 

Biga

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When I bought my 2014 the dealer told me I could pay off the loan with Chrysler Capital after 90 days and that's what I did. On my 2019 they didn't say anything but I did pay it off after about 6 months. Neither time was the dealer involved as the loan was between me and the third party bank.
 

AndreiV

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When I bought mine with 10K down and 34K in loan (44k in total after TTL) from dealer all they asked for me is to wait and do at least one payment. In the next two weeks loan changed hands and finally Wells Fargo came up as a winer. I made first payment and the next day paid all outstanding ballance.
 

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