Using Rebate on 2018 Yukon-Finance Question for Forum

[Amanda4461]

Hello folks,
I just purchased a 2018 Yukon Denali from my local dealer. Traded in my 2010 Tahoe after almost 9 years of great service. The web shows the details of accepting the Rebate, which amounts to 9% off MSRP. In addition to the 9% off MSRP, the dealer reduced the price another $2,493 and then subtracted my trade-in's value. Compared to other dealers in the area, he offered a better price on my trade-in and the additional $2,493 was negotiated and seemed much better than I could find elsewhere. I understood from the GMC finance advertisements that I had to finance through GM Financial, and I did. My question is, do I have a set time period that I must maintain the GM financing in order to keep the rebate? The dealer's finance guy told me that I must maintain the loan for 1 year, at which time I can refinance the vehicle through my credit union at a lower price. I didn't see this mentioned in the advertisement from GMC, and the Retail Installment Contract doesn't make any mention of it, The contract just states that I can prepay it at any time without penalty. Sort of leaves me feeling like the Finance guy is scamming me to keep the higher interest rate flowing. Any ideas?
Thanks!
BTW- The Denali is a tremendous improvement over the 9-year old Tahoe. Achieving 25mpg with the 6.2liter set on cruise at 72mph is quite a feat, considering the best the weak old 5.3liter ever did was 18mpg, and it wouldn't pull a greasy string out of a pig's butt

 

[jlbags]

I am in a similar situation. Just bought a similar rig as well and financed through GM to get the additional rebate. My dealer asked me to not refinance until after 90 days and 3 payments. When I was shopping for this deal, another dealer based the deal using GM for financing as well and also asked to not refinance for 90 days.
In reading my contract, it is like yours with no prepayment penalty as well.
Anyone have any insight on this topic??

 

[Twn7575]

There no pre-payment penalty from the bank. The dealers get paid on the financing and if you refi within a certain time the bank will charge them back their commission.


Sent from my iPad using Tapatalk

 

[Fatrusty]

Yep they get the commission if you make three payments.

 

[jpcortese]

Yep they get the commission if you make three payments.

I too just bought a 2018 Denali and I financed a portion through GM Financial. I was told I could pay it off after 3 months by the dealer's finance manager. I assume that that is correct.

 

[Jettix2]

My guess is you won’t have a penalty if you re-fi in a week, the dealer just gets a kickback if you maintain the loan 90 days.....

 

[Amanda4461]

I talked to my old Texas sales manager about this. He said that most folks understand that they have to accept GM Financial to get the car. However, most that have credit scores above 700 also refinance immediately if they can get a better rate. Considering the fact that I can get a 2.5% versus a 5.99% loan using my credit union, and don't make a payment for 3 months, I'll be using the credit union. If the Finance guy had been above board, and given me a decent interest rate from GM financial, I would eat a 1% difference. He didn't, so I won't. I just hope a bunch of 20-something years old kids don't get burned up by this guy.

 

[CummingYukon]

I'm in a similar situation except the finance guy told me to refinance right away. He was embarrassed about the GM rate and knew I could do better.

 

[jpcortese]

I too just bought a 2018 Denali and I financed a portion through GM Financial. I was told I could pay it off after 3 months by the dealer's finance manager. I assume that that is correct.

An additional question for those that know the answer. My first payment is due later this month and my wife has suggested that we make a larger payment than what is due. If my monthly payment is $200 and I write a check for say $1,000, what affect would that have? Would the difference reduce my principal and pay off my loan faster? In an extreme example, if my loan amount is $10,000 and my monthly payment is $200, what would happen if I make a payment of $10,200?

 

[Amanda4461]

An additional question for those that know the answer. My first payment is due later this month and my wife has suggested that we make a larger payment than what is due. If my monthly payment is $200 and I write a check for say $1,000, what affect would that have? Would the difference reduce my principal and pay off my loan faster? In an extreme example, if my loan amount is $10,000 and my monthly payment is $200, what would happen if I make a payment of $10,200?

jp-
If you send additional money to your bank, you should specify that you want the additional funds used to reduce the Principal. This will reduce the payoff amount that you owe, effectively reducing the number of months owed on your loan. Your extreme example may or may not cover the actual Payoff amount due at the time you send it. If you overpay, the bank refunds the difference. If you underpay, you get stuck paying interest on the remaining balance until it is paid off.