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Hi! I am new to the forum, so I hope I posted this in the right place.

Just recently purchased a Pacifica and took the Chrysler Capital Financing (and its higher interest rate) to get the bonus cash.

How soon can I pay off this loan? Does an early payoff do anything to the bonus cash received?

Thanks!
 

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The way I understood it there is no penalty for paying the loan early. The dealership may lose their incentive if the loan is paid off before the third or fourth payment installment but I don't think that the loan holder is penalized. As a courtesy to the dealership and the verbal agreement we are waiting for the 3rd or 4th payment prior to paying off our Chrysler Capital loan.
Maybe someone more familiar can update us too, but that is the way we understand the scenario at present. Still ahead in the end incentive wise with this approach.

Welcome to the forum btw. This is a fun family vehicle.
 

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There is no requirement to have the loan for a minimum length of time. I paid mine off less than a week after it was opened. Some dealers do ask customers if they will wait a few months so that they don't lose whatever incentive the dealer gets for selling the loan, but my dealer never mentioned anything like that.
 

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Finance guy at my dealership said I needed to make 3 payments. After that I could pay it off. No penalty for the borrower but the dealership will get back charged for some amount if the borrower does not make the 3 payments. I was planning on buying all cash this time but took the minimum financing ($5K for 36 months) to get the $1,000 rebate. Figure I'll spend $60 bucks or less in interest to get $1000. I did have to reduce my deductible from my standard $1,000 to $500 for the loan. Not sure yet how much that will cost me before I up it back to $1000 after the loan is paid off.


For what its worth, I found Chrysler Finance to not be that good. I received the first statement about 7 days before it was due. Not a huge deal as I knew it was coming. Just surprised it took so long to get to me. I planned on just paying online but they wanted to charge $2.75 even as a direct withdrawal from my checking account. Ended up sending them a check via mail and watched my account to make sure the payment was recorded on time. It was.


The Finance guy was not that keen on Chrysler Finance. He was practical when he commented that they give with one hand ($1,000 rebate) while taking with the other (higher than market interest rate). It worked well for my situation but I can see it is not the best deal out there.
 

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For what its worth, I found Chrysler Finance to not be that good. I received the first statement about 7 days before it was due. Not a huge deal as I knew it was coming. Just surprised it took so long to get to me. I planned on just paying online but they wanted to charge $2.75 even as a direct withdrawal from my checking account. Ended up sending them a check via mail and watched my account to make sure the payment was recorded on time. It was.
Had to lol with this. Found the same thing that the documents took some time to arrive, then a science fair project to simply make a payment. Will not be disappointed to be done away with this loan company.
Thanks to Shawne for the clear description, which upon reflection was how the scenario was described to us as well.
 

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I specifically asked this question to the finance guy. He stated that I can refinance at any time, however, the dealership gets hit with a "fee" of sorts. I forget the amount exactly but it was around $300 or more. Something about the difference of the $500 rebate and the time it took to refinance. It takes 3 payments before the dealership is free of that fee. At no point will you lose your $500 rebate!

My own thoughts was that I picked this dealership to support them as much as how they supported me, which was extremely positive. I calculated the loss of higher interest rate over the $500 rebate and came to the conclusion that I would still save about $275 (ish) as opposed to going to another bank with a lower interest rate. Chrysler Capital knows this (assumption) and are banking on people getting lost in the paperwork and not going through with the refinancing... at any time. I WILL refinance after the third payment.
 

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I've had dealers tell me the minimum to finance is $7,500 and others have told me $10,000 in order to get the rebate. I've yet to have one say $5,000 which is weird because everyone on here has been told $5,000.
 

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I've had dealers tell me the minimum to finance is $7,500 and others have told me $10,000 in order to get the rebate. I've yet to have one say $5,000 which is weird because everyone on here has been told $5,000.
The minimum loan amount required by Chrysler Capital is indeed $5000. Dealers may get a bigger kickback with larger loans.
 

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I've had dealers tell me the minimum to finance is $7,500 and others have told me $10,000 in order to get the rebate. I've yet to have one say $5,000 which is weird because everyone on here has been told $5,000.
Every dealer I asked about the financing said the minimum was $7,500 and that I could get rid of it on the 3rd payment.
 

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Every dealer I asked about the financing said the minimum was $7,500 and that I could get rid of it on the 3rd payment.
Maybe it varies by state? My loan was for $5000 and I paid it off after 6 days.
 

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Pay it off when you want.

Maybe it varies by state? My loan was for $5000 and I paid it off after 6 days.

I recently purchased a 2017 Jeep Cherokee and borrowed 5000 dollars to get the extra 500 dollars off the price. When signing the papers they brought in a paper that they said" I had to sign that it and it said I had to make payments for a minimum of 100 days or "they" would lose some of their rebate. This was after I had already signed the loan paper that says there is "no prepayment penalty" so I am going to pay it off as soon as I can find it on the Internet and pay it all off the same day. I gave the dealer a good review, but if they mess with me about this, I can soon change that too . By the way, I was told by another dealer a year or so go that $7500 was the minimum I could borrow and it was more than my difference between my trade, so the dealer had to send me a check of 1500 (since I only paid a difference of 6000 dollars) and then when it came on the Internet I paid it all off anyhow. Every time I read about all the rules and stuff about Chrysler Capital it makes me wish I just paid cash anyhow, but 500 dollars is 500 dollars and believe me they make a lot more than that on the deal and will not go bankrupt if I pay it off as soon as possible. I wish I could have paid mine off in 6 days, but it has been 9 days already and it is not on their accounts yet. I call every day to 855-563-5635 (phone number from memory so hopefully correct_) to see if it is on the books yet.
 

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I recently purchased a 2017 Jeep Cherokee and borrowed 5000 dollars to get the extra 500 dollars off the price. When signing the papers they brought in a paper that they said" I had to sign that it and it said I had to make payments for a minimum of 100 days or "they" would lose some of their rebate. This was after I had already signed the loan paper that says there is "no prepayment penalty" so I am going to pay it off as soon as I can find it on the Internet and pay it all off the same day. I gave the dealer a good review, but if they mess with me about this, I can soon change that too . By the way, I was told by another dealer a year or so go that $7500 was the minimum I could borrow and it was more than my difference between my trade, so the dealer had to send me a check of 1500 (since I only paid a difference of 6000 dollars) and then when it came on the Internet I paid it all off anyhow. Every time I read about all the rules and stuff about Chrysler Capital it makes me wish I just paid cash anyhow, but 500 dollars is 500 dollars and believe me they make a lot more than that on the deal and will not go bankrupt if I pay it off as soon as possible. I wish I could have paid mine off in 6 days, but it has been 9 days already and it is not on their accounts yet. I call every day to 855-563-5635 (phone number from memory so hopefully correct_) to see if it is on the books yet.
They won't mess with you as there is nothing that says you have to make the 100 day of payments other than a typed document on Word. "They" the dealer would be charged a penalty pro rated to the amount of rebate would be at time of payoff.
 

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I was recently told that my credit union will only let you refinance as a new car loan within the first 90 days. It would seem like these two numbers line up as a way to force one or the other but not both. :frown2:

I know that other banks are more lenient. I have another credit union and may also consider USAA. I will have to confirm with them what their policy is regarding "new" vs "used" care refinancing. Heck, sometimes when they are doing promotions, the used car rate is just as good as the new. And, even my primary credit union has offered refinance of auto loans based on a rate reduction and unrelated to the duration after the initial purchase.

I, too, believe in trying to support a dealer who was fair and worked with me. I already had the conversation with the general manager at my local dealer. If/when I decide to make this purchase, we will look at all incentives available to me (Costco/TrueCar, USAA, FCA affiliates, Chrysler financing, the list goes on....) and figure out which one gives us both the best final numbers. I really don't care which ones we use but as an informed buyer, want to look at all aspects of the transaction. This includes stuff like this 90 day/3 payment discussion.

I did a Ford Motor Credit short term loan on my truck. I tried to pay off in the first week. My credit union claimed that they could not get a firm payoff amount (apparently they don't think Ford uses the same amortization as everyone else....) until after Ford processed the loan. So, instead of paying off in 6 days, it was closer to a full month. I still never made a payment to Ford, but definitely accrued most of the first month of interest. I also recall them needing the loan number. Either way, I was not happy. I was at the CU with bill of sale the first business day after the transaction and they would not touch it for a couple weeks.

I realize that some of this does not apply for those paying cash. My hat is off to you if you can do that.
 

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I bought my touring l with Chrysler capital because of the promotional money. There was no early payment penalty and I discussed my intention to rapidly pay it off with the dealer and they raised no concerns. It took me a couple of months to pay it off as I was surprised to see a low fee credit card payment option from Chrysler. Using my 2% cash back credit card to pay off with the maximum allowed 2k payments saved me almost another $600 off the vehicle.


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Mine told me I can pay off after 3 months but didn't mention if they would take a hit if I paid early. They gave me a $9K discount and I got a touring (power lift gate, UC 8.4) for $23,580 so I was willing to help them out by financing for 3 months.
 

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Resurrecting this thread 9 months later, but want to confirm: If I finance with FCA to get the bonus cash for a Pac purchase, can I legally move it over to my credit union loan in the 1st month? Looking for some confirmation on this, thanks.
 

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Resurrecting this thread 9 months later, but want to confirm: If I finance with FCA to get the bonus cash for a Pac purchase, can I legally move it over to my credit union loan in the 1st month? Looking for some confirmation on this, thanks.
Yes. There are no laws requiring you to keep the loan.
 

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Yes. There are no laws requiring you to keep the loan.
so the only reason to stay in it for, say 3 months, is to help the dealer get their kick back, is that right?
 

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so the only reason to stay in it for, say 3 months, is to help the dealer get their kick back, is that right?
Correct. Though, my dealer never said anything about a kickback and didn’t bat an eye when I told them I was going to pay it off immediately.
 

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Correct. Though, my dealer never said anything about a kickback and didn’t bat an eye when I told them I was going to pay it off immediately.
Thank you, General Sir!!!
 
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