Refinancing Experiences

[kooz21]

There are several posts talking about using FCA financing to get a rebate, then refinancing some time later at a better rate. I'm just wondering if any of you can speak from experience on whether or not it was worth it. Right now the rebate is $500 (I think), which is nice, but not if it's going to be a PITA. I would be more inclined if it was $1000. Anyway, just wanting to hear if these experiences are generally smooth or difficult. Thanks!

 

[NorthStar]

Back in September I financed with FCA for the rebate and then refinanced a month later with my credit union. I knew the rate they shot me was well above the rate I was qualified for at my CU (and showed it to the dealer who could not match it) but decided to bite for the $500 and then refinance ASAP. It was the easiest thing I've ever done as I simply took all the loan paperwork provided by the dealer in to my CU when I closed with them a month later. They paid off the FCA loan and provided the interest rate I previously qualified for plus a discount for automatic withdrawal from my checking account. Of course, the Finance Manager asked me to hold the FCA loan for at least three to six months whereupon I stated I'd be happy to oblige provided he or the dealer made my payments for those months. He just smiled and moved onto the next piece of paper I was to execute.

(I say a month later...it may have been 35 days later...waited for the letter from FCA indicating my account was set up and the account number...then off to the CU.)

 

[cj7]

Was worth it for me. Financed thru FCA, got the incentive, got the account number the following week, next day applied thru my Credit Union online, and had the refi done (all remotely) before the first FCA payment was due. Hardly any work for a couple hundred bucks...

 

[jdmartin]

I did it. I think I got $1000 for using FCA's financing. The dealer told me I had to keep it 6 months to keep the rebate. That was BS as I refinanced about 2-3 weeks later through my credit union just to get it off FCA's books and I paid no penalty. Then I promptly paid it off from my credit union. I ended up paying $50 in fees and interest to finance out of FCA and go to my credit union, which was a tax write-off for my business, and I got the incentive. It took me about 30 seconds to sign the paperwork at my credit union.

Because I had no plans to keep it as a loan I didn't care one way or the other about interest rates. If you are going to keep a payment, then you need to take that into account.

 

[Gitter]

Back in September I financed with FCA for the rebate and then refinanced a month later with my credit union. I knew the rate they shot me was well above the rate I was qualified for at my CU (and showed it to the dealer who could not match it) but decided to bite for the $500 and then refinance ASAP. It was the easiest thing I've ever done as I simply took all the loan paperwork provided by the dealer in to my CU when I closed with them a month later. They paid off the FCA loan and provided the interest rate I previously qualified for plus a discount for automatic withdrawal from my checking account. Of course, the Finance Manager asked me to hold the FCA loan for at least three to six months whereupon I stated I'd be happy to oblige provided he or the dealer made my payments for those months. He just smiled and moved onto the next piece of paper I was to execute.

(I say a month later...it may have been 35 days later...waited for the letter from FCA indicating my account was set up and the account number...then off to the CU.)

I pretty much did the same thing. Didn't care about the horrible APR. About 30 days later, I had my account number, and the payoff amount, went to my CU, and they cut a check to FCA the same day. Super easy and no penalties like some dealers try to tell you.

My dealer was actually up front about it since I was being very up front but friendly with them (and I was their first customer of the day). Basically, they were only worried if they got audited by FCA.

 

[nburd]

Worth it to me as well. 810 credit score, FCA was 6.49% as I learned at the dealer on pick up day. Internet sale, I am sure some of that percentage went to them and I was 250 miles from home. I was shocked but did it knowing my bank was much lower. Went to my credit union 5-10 days later and refinanced to 3.25%. Never even made an FCA payment. No fees, no nothing. BTW the dealer told me there was a penalty if I refinanced before 90 days. It was not in the FCA contract and a call to FCA confirmed it was a lie.

 

[cj7]

Worth it to me as well. 810 credit score, FCA was 6.49% as I learned at the dealer on pick up day. Internet sale, I am sure some of that percentage went to them and I was 250 miles from home. I was shocked but did it knowing my bank was much lower. Went to my credit union 5-10 days later and refinanced to 3.25%. Never even made and FCA payment. No fees, no nothing. BTW the dealer told me there was a penalty if I refinanced before 90 days. It was not in the FCA contract and a call to FCA confirmed it was a lie.

The dealer didn’t completely lie, just “forgot”’to mention that the penalty was on them - their spiff is penalized if the note is canceled before the 90 days.

 

[Burnzie]

We bought new truck in end of July, had to finance through Chrysler Capital for 6 months to get a Free Lifetime Warranty. Crappy interest rate and higher monthly payments ( 7.8% and $715.00) @ our CU we have been quoted many times the same (3.7% and approximately $650.00 or lower) .We decided it's worth it for 6 months and will refinance in March.

 

[NorthStar]

Worth it to me as well. 810 credit score, FCA was 6.49% as I learned at the dealer on pick up day. Internet sale, I am sure some of that percentage went to them and I was 250 miles from home. I was shocked but did it knowing my bank was much lower. Went to my credit union 5-10 days later and refinanced to 3.25%. Never even made and FCA payment. No fees, no nothing. BTW the dealer told me there was a penalty if I refinanced before 90 days. It was not in the FCA contract and a call to FCA confirmed it was a lie.

FCA interest rate was 5.99% and my preapproved rate from my CU was 2.69%.

I took my $500 FCA rebate and ran to the credit union to refinance to 2.69%.

 

[iLikeRamsnow]

I didn’t take the 500, I didn’t think it was worth it but I pushed for a bit more on the trade


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[gpbst3]

My dealer got me the lowest interest rate with FCA which was the same as my credit union. It was below FCA posted rate.

 

[kooz21]

Thanks everyone. Good info here. Seems like it’s pretty straightforward.

 

[Mr. Hindsight]

I’m leasing my Ram but saw this thread and wanted to post my local CU’s new & used auto rates. Auto rates as low as 1.59% up to 72 months. I have been with them almost 20 years. They are great!

Rates - American 1 Credit Union

Loan and Savings Rates offered through American 1 Credit Union

www.american1cu.org