Refinancing - a couple of questions

[PivotalRex]

I have a good deal on a Yukon Denali. The problem is that there's a 2500.00 rebate attached that requires GM financing. For 72 months the best they can offer is 3.99%. Can someone suggest a credit union or bank for refinancing? Navy Federal has 2.79 or 3.49 depending on the term.

For those that have experience with refinancing is it even worth it at 3.99%?
Also, is it better to refinance right away or wait 6 months to a year?

 

[David Smith]

I have a good deal on a Yukon Denali. The problem is that there's a 2500.00 rebate attached that requires GM financing. For 72 months the best they can offer is 3.99%. Can someone suggest a credit union or bank for refinancing? Navy Federal has 2.79 or 3.49 depending on the term.

For those that have experience with refinancing is it even worth it at 3.99%?
Also, is it better to refinance right away or wait 6 months to a year?

I have always been told it is better to refinance sooner than later. The longer you wait, the more interest you are paying...But I have also been told that when buying new that your vehicle depreciates most in the first year or two and that could impact your refinanced interest rate...

 

[nv6425]

3.99% for 72 months is a good rate. You may find cheaper at Navy Federal or PenFed, but probably not worth the hassle.

 

[JayceeP]

I don't understand how banks in the US are offering auto loans sub-4% unless through a dealer at time of brand new purchase (in which case cost of borrowing is really built into the price).

 

[LI Tahoe]

I thought GM Financial was doing 0% for 72 months on 2017's.

Is that promo over?

 

[sickk23]

3.99% for 72 months is a good rate. You may find cheaper at Navy Federal or PenFed, but probably not worth the hassle.

I disagree. Basically 4% on a new vehicle, if his credit is good, isn't a good rate. Especially at the end of the year. Unless this is a 2018.

In April I refinanced my 2017 suburban, two months after I got it. My original rate from the dealer was 3.4% through Ally for 72mo for about $63k. I refinanced with State Farm and have 2.19% interest for 60mo.

 

[PivotalRex]

I thought GM Financial was doing 0% for 72 months on 2017's.

Is that promo over?

Denali has 0% for 60 but no rebates so I lose 4500.00 in pricing. GM is offering 2500.00 rebate on Denali's but only with their financing. I have excellent credit which is why I thought I would get a better rate than 3.99% for 72. Being told there is no better rate with that term (72 months) and the rebate.

 

[S33k3r]

Denali has 0% for 60 but no rebates so I lose 4500.00 in pricing. GM is offering 2500.00 rebate on Denali's but only with their financing. I have excellent credit which is why I thought I would get a better rate than 3.99% for 72. Being told there is no better rate with that term (72 months) and the rebate.

Look at how much you will save in interest vs. the $2500 you are losing on rebate. Also, look at the opportunity cost -- if you go for 3.99% + $2500 rebate, you get $2500 up front; if you go with a lower rate, you may save $2500 (or more), but it will be over time.

Once you have figured those things out, you'll know what to do...

 

[YukonCpt]

I just did a refi with American Airlines credit union. Was 3.99 at purchase and refi is at 1.49%.

 

[Illnasty]

3.99% for 72 months is a good rate. You may find cheaper at Navy Federal or PenFed, but probably not worth the hassle.

What! That's a terrible rate on a new car.

 

[cardude2000]

What! That's a terrible rate on a new car.

Not really. Pretty average right now for a 72 month loan.

 

[cbuckeye20]

I got 2.8% over 60 via https://www.lightstream.com/auto-loans

 

[Coalhat]

As a dealership employee I can tell you definitively that cash offers tied to GM Financial will not be the most competitive rate, but it's worth it for the additional rebate. Frankly I'm surprised it's not 5.99. Take the offer and stay with GM Financial for 6 months, then refi at best available. Check your local credit unions. There's no cost to refi a car and the paperwork is pretty simple, so ANY rate savings is worth the effort.

 

[cardude2000]

FWIW I got 1.5% for 36 months with AAA. They went out and shopped rates and got a loan through a local credit union.

 

[PivotalRex]

As a dealership employee I can tell you definitively that cash offers tied to GM Financial will not be the most competitive rate, but it's worth it for the additional rebate. Frankly I'm surprised it's not 5.99. Take the offer and stay with GM Financial for 6 months, then refi at best available. Check your local credit unions. There's no cost to refi a car and the paperwork is pretty simple, so ANY rate savings is worth the effort.

Thanks, I took their offer because of the rebates. Going to refinance with Navy Federal since I'll be able to get their new car rate for refinancing. Car has to be 2016,2017,2018 and under 7500 miles at the time of refinancing to qualify as a new car.

Most of the companies that refinance consider it used once you drive off the lot.

 

[S33k3r]

Thanks, I took their offer because of the rebates. Going to refinance with Navy Federal since I'll be able to get their new car rate for refinancing. Car has to be 2016,2017,2018 and under 7500 miles at the time of refinancing to qualify as a new car.

Most of the companies that refinance consider it used once you drive off the lot.

+1 for NFCU. Best financial institution with whom I have EVER had the opportunity to do business. And the employees are really awesome, too.

 

[jac1304]

Seems interest rates have been climbing...