Can you early payoff gm finance loan w/out penalty ?

Discussion in 'General Discussion' started by Tim mcleod, Dec 30, 2018.

  1. homesick

    homesick Full Access Member

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    That's what I was thinking. Pay all but a token amount, then just wait for the 'finish line' to make the last payment. You need, also, to write "apply to principal" (or something similar) on your extra payment check(s). I learned that lesson when my own brother cheated me on a business deal.

    I think I'd also make the salesman show me that rule on paper. I wouldn't necssarily believe a guy in a plaid sport jacket. ;)

    joe
     
    Miami-Dade, Tonyrodz and Beagleman like this.
  2. Rdr854

    Rdr854 Full Access Member

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    I recently paid a vehicle off at the first payment. Look at your finance contract. If it is simple interest and says “NO PREPYMENT PENALTY”, you can pay the loan off when you want without penalty.

    The finance manager at the dealer is “asking” you to wait for a specified period of time so that the dealer does not lose its commission for originating the loan.
     
  3. Galante

    Galante Elite Member Supporting Member

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    You’re right, i just looked, it expressly states just that right on top.
     
  4. PwrdbyM

    PwrdbyM TYF Newbie

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    I've done this multiple times where I had cash to pay in full but wanted to take advantage of an incentive only available if financing through them. You can ask all the forum questions you want but in the end the answer is to read your contract as it will be spelled out in it. No one on this forum, despite prior experience, can say for sure what it says. I can tell you that auto loan contracts from auto maker financial institutions do not NORMALLY have a penalty, but no guarantee. Also, don't take the finance guys word for it because he likely doesn't know. He makes a commission on each loan and will tell you want you want to hear to push it through.
     
  5. DCP2000

    DCP2000 TYF Newbie

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    We paid ours off when we received notice that the first payment was due. We did not incur any penalties and they sent us the title very quickly.
     

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