Must make three payments then you can refinance?

[GFK51]

I recently purchased a 21 Longhorn Limited 10 year anniversary edition. When I went to the finance office they told me that there was a problem with my Social Security Number. I have a 861 credit rating and wanted the 0% financing that Chrysler Capital was offering. I was not able to get that rate because of the so called problem with my Social Security Number. I had to settle for a 4.49% rate and when I balked at that rate the finance office told me that I had to make three payments and then I could refinance. Has anyone had this situation happen to them? Do you have to make three payments and then you can refinance?

 

[GadgetMason]

I recently purchased a 21 Longhorn Limited 10 year anniversary edition. When I went to the finance office they told me that there was a problem with my Social Security Number. I have a 861 credit rating and wanted the 0% financing that Chrysler Capital was offering. I was not able to get that rate because of the so called problem with my Social Security Number. I had to settle for a 4.49% rate and when I balked at that rate the finance office told me that I had to make three payments and then I could refinance. Has anyone had this situation happen to them? Do you have to make three payments and then you can refinance?

I'm not hip on ‘prob with SSN!’ sounds like bait and switch to me.

 

[Snofire]

Typically to be nice to dealers you'd wait 3-6 months but for that I'd switch as soon as possible. What can they come back at you with? Absolutely nothing.

 

[Willwork4truck]

I was told the same thing on the 90 days, others on here say you can pay off/switch financing anytime it's just the dealer that loses their kickback.
I personally think you got hosed by the dealer on the credit as you have described the process, I doubt you can get that reversed but you probably could call regional and try to make a stink about it.

 

[Scap]

You should be able to move it as soon as they assign an account number.
It used to be the "3" payments was so that the dealer got their kick...

 

[Willwork4truck]

Typically to be nice to dealers you'd wait 3-6 months but for that I'd switch as soon as possible. What can they come back at you with? Absolutely nothing.

Sounds like advice from the singer Edwin Starr: (War song lyrics from 1969 for you young folk)
'uh
Yeah!
(What is it good for?)
Absolutely (nothin) uh-huh, uh-huh

 

[arod412]

Yikes...sounds super fishy to me. If there was an issue with your SSN, you would not be able to get ANY loan. Then they give you this crap of 4% apr.

I'm thinking they got you with that apr....but I hope you got a better price on the truck to make up for the thousands they just made in financing.

Owner of a 2020 Ram Laramie (leveled with 2" rc struts and 1" rear spacer on 33.5" toyo open country) , 16 Dodge Charger scat pack and my wife 21 Jeep Wrangler Unlimited Sahara (2.5" rc lift with 35" duratracs)

 

[UnloosedChewtoy]

Yup, the whole 3 payments (or months) until refinance is just for them to get their kickback, as stated. I wonder if the fee/kickback is less under the 0% offer?

Review your contract, make sure they didn't add any language that states you will be hit with penalties for refinancing early. I've heard its very rare for them to do this, but it sometimes happens. If nothing in there about prepayment/early repayment penalties, I'd call corporate and make a stink about it, and if that did no good, blast it on social media and refinance ASAP.

But that is probably the almost-nuclear option. If you don't want to make a big stink, but still stick it to 'em, just do the last step (after reviewing the contract) and refinance ASAP.

 

[V509]

I purchased my 21 Laramie the end of December, they told me there was an extra $500 discount if I finance through Chrysler and that I could refinance with whoever I wanted after three payments and not lose the $500 discount

 

[UnloosedChewtoy]

I purchased my 21 Laramie the end of December, they told me there was an extra $500 discount if I finance through Chrysler and that I could refinance with whoever I wanted after three payments and not lose the $500 discount

If there is no language in the contract stating they can come after you for that discount/rebate, then there is nothing they can actually do if you refinance early. I read and am told its usually an honor system. If you like the dealership, they treated you well; wait until after the 3rd payment clears before refinancing. If you were treated poorly, review the contract and (assuming no negatives are found) refinance early.

Thats what I'd do, anyway, assuming I hadn't walked out for being treated poorly.

 

[KCViper]

You should push to get to the bottom of the "issue with your SSN" and have the dealer explain, in detail, exactly what the "issue" is!! Our credit ratings are almost identical and no way i'd pay 4% with the economy like it is. Did you seek alternative financing? Sounds like games to me!

 

[cj7]

I have not seen a loan that really had a 3 payment requirement. Extremely likely that their spiff is earned after the third payment. Given rates available today, refi ASAP (or sooner) - they don’t deserve their commission. There was nothing wrong with your SSN...

i financed to get the rebate, was told the same thing, double checked (no early repayment penalty) and refi’d in 10 days, right after I got an account number and before the 1st payment.

 

[Burnzie]

When we bought our Rebel in July of 20 we didn't have to finance with Chrysler Capital but if we did we got a lifetime power train warranty if we kept it with them for 6 months, so we did and just refinanced in February.

 

[Rick J]

I'm not hip on ‘prob with SSN!’ sounds like bait and switch to me.

I financed my truck to get the $1000.00 rebate they were giving at the time. I paid it off after the first payment.

 

[Aseras]

You can refi as soon as you have an account number. The 3 payments or 90 days is to prevent the dealer from getting a "chargeback" of their referral fee they are paid to herd you into captive financing.

Don't lose money to save someone else money, they don't care about you.

 

[Aseras]

I recently purchased a 21 Longhorn Limited 10 year anniversary edition. When I went to the finance office they told me that there was a problem with my Social Security Number. I have a 861 credit rating and wanted the 0% financing that Chrysler Capital was offering. I was not able to get that rate because of the so called problem with my Social Security Number. I had to settle for a 4.49% rate and when I balked at that rate the finance office told me that I had to make three payments and then I could refinance. Has anyone had this situation happen to them? Do you have to make three payments and then you can refinance?

always ask for the denial in writing. if they won't give it to you, it is a lie. If your SSN was an issue NO ONE would give you credit. Its AML and KYC law.

 

[ElkoNV]

My dealer is honest, straight up says $2000 off if you finance. They ask you to make 6 payments, just ask. I am sure some people don't but I appreciate their upfront approach. My credit is 810 I will see what the rate is next month when I pick up the truck and decide. If I take the discount then I will make the 6 payments just because I appreciate honesty and will return it.

 

[ExtinctBird]

I agree with many of the posts above. In my most recent purchase, I was not thrilled with the bank financing rate provided for a used car. I asked the finance guy if there was any reason I could not refinance immediately with my own credit union. (I just didn't have the time to chase financing for the purchase.) He told me there was none, except they (the dealer) got some preferred treatment (i.e. kickbacks) from the banks if I stayed for at least 3 months. This was a dealer that I respect and used before, so I am going to refi after the 3rd payment.

Similarly on my Longhorn purchase last year, I used FCA credit to qualify for some rebates. The dealer treated me well, and they also asked me to make 3 payments before paying it off. That is what I did.

In the OP's instance, it does not sound like there is much cause to go out of your way to help them out. I would refi immediately.

 

[jdmartin]

You can refi as soon as you have an account number. The 3 payments or 90 days is to prevent the dealer from getting a "chargeback" of their referral fee they are paid to herd you into captive financing.

Don't lose money to save someone else money, they don't care about you.

Exactly. The dealer's job is to sell trucks for as much money as possible, your job is to get the best deal for yourself. The dealer's not going to give you anything you don't work for in negotiations. If they want me to hold financing so they can get their cut, then they better give me a piece of that cut and be straight with me that it exists, and the cut better be more than I'm going to pay in interest.

In any case, I did just like the guy above . I took the financing to get the rebate, transferred it to my credit union a week or two later and then paid it off the next month. I think i ended up getting $1500 rebate for the financing and paid about 50 bucks in interest and fees.

Sorry for the dealer but I don't care 5 cents about their profit margin. I look out for numero uno and let the dealer figure it out for themselves.

 

[DevinB]

the "something wrong with your SSN" crap was a sleazy bold-face lie. I wouldn't do business with bottom-feeders like that. As others have said, if there was an issue with your SSN, you wouldn't have qualified for the loan amount. And the 3 or 6 month requirement or request is so the dealership can get their referral-fee/kickback/spiff on the loan. Nothing wrong with that if they're upfront about it.

About refinancing that early, keep in mind, on any amortized loan, the early payments will have the front-loaded interest (proportion of each payment is some part principal and some part interest). When you refinance, the amortization schedule starts all over again and you'll 'lose' that front loaded interest you paid. Your APR would need to be significantly better or enough to offset what you've lost in interest payments.