07-27-2018, 12:04 PM | #1 |
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Drives: F22 M240i / E46 330Ci ZHP
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Will refinancing too soon ding credit / lose incentives
Hey folks,
Seeing if anyone had some advice abotu refinancing a loan. I JUST got my M240i and used BMWFS to get the related incentives. My credit union has me pre approved for a loan with a better rate, but I was concerned that if I refinanced that it would impact my credit score. Anyone have any experience with this? I'm also still trying to figure out if I NEED to make a certain amount of payments to not have to pay back the incentives. I've heard 3 months, 6 months. But from what it appears to me, there is nothing stopping me from doing it, but the dealer won't get THEIR cut if I do it too soon. |
07-27-2018, 04:49 PM | #3 |
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Usually, any inquiries for auto or home financing grouped within a 30 day window only count as a single inquiry, so it may not impact your scores at all. The FICO model has been tweaked to reflect that, since no one should be penalized for shopping for the best deal. It's what smart consumers do, and smart consumers usually have higher credit scores.
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09-17-2018, 02:02 PM | #4 |
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Incentive penalty for early loan payoff
Hello,
I have a similar question as the OP. I purchased a 2019 X3 and financed through BMWFS (USA) to get the APR incentive ($2,000). I would like to pay off the loan on the first payment, but the dealer said I had to make 6 payments before paying it off to be eligable for the incentive, but nothing is in writing. BMWFS, and my contract say the loan can be paid off anytime without penalty. It sounds like BS to me, what is the dealer gonna do, send me a bill for the incentive...???? Has oneone had any experience with this??? Thanks in advance!! |
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09-17-2018, 06:04 PM | #5 |
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Usually these financing deals are open loans where the interest is baked into the whole and it's just spread out over the term.
i.e. there is no savings to paying it off sooner so it shouldn't matter how quickly you pay the balance off. However, rather than ask a bunch of internet armchair financial advisors like myself, the best way is to just call them. No one is going to yell at you. |
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09-18-2018, 04:45 PM | #6 | |
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09-18-2018, 05:35 PM | #7 | |
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10-05-2018, 11:12 AM | #8 | |
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To the OP - if you don't want to screw the dealer, make the first 3 payments and do the payoff. If you don't like the dealer and don't plan on going there again, pay it off right away.
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