I currently have a chance to be a new Ioniq 5 at a favourable price. Unfortunately, the dealer insists that I must finance with Hyundai Motor finance.
Dealer Disclosure: Price does not include loan charges, dealer document preparation fees, emission testing expenses, or government fees and taxes. Five-star cars with 80,000 miles or less and nine years or less in age."
Can you guys please bring your input on:
a) Assuming a $40K pricing, what is the upfront cost of financing?
b) I can buy it outright because I have the money. Can I pay it back in seven days?
Before you take the deal, know that you typically get a better price on the car if you finance through the dealer because they expect to get interest on your loan. Therefore, financing and then paying it off early is a great way to go. Just don’t let on that this is what you are planning to do. Also as the other poster said check to make sure there is nothing in the contract about early fees or restrictions and circumstances that may affect your paying it off early.
I did exactly this and surprisingly my dealer was disappointed because they didn’t get their extra commission on the loan. But I have no issue because it isn’t my problem.
Yeah, that is actually correct. The guys said the same thing to me too. I called Hyundai Finance to confirm there was no penalty for me, and I knew they were lying. I paid it off that day.
The case is not the same everywhere because some loan holders will charge an early pay-off fee although most won’t. Confirm that before you sign off on the deal to avoid any surprises.
Follow the other posts in this thread and call Hyundai Motor Finance which is a different company from the dealership to double-check your questions. Is it possible for me to pay early? What costs come with making an early payment?
Try to acquire their responses in writing.
Go over your contract again and again. The contract would need to specifically address any early payment penalties. You would be free to pay the whole amount due at any time under any contract that does not expressly state that there is an early payment penalty.
I have only ever been offered one contract containing an early payment penalty in my forty years of car ownership, and I simply refused to sign it until they removed that particular condition. Not an issue. It is imperative that you thoroughly study any contract before signing it.
I have done exactly the same with Hyundai Finance on three cars now. Usually, it happens after the first payment (since occasionally it takes some time to set up the loan account). However, there have never been any limitations or fines.
This is not a new thing to me coz I have seen this happen with other car companies too. For my brother to be eligible for her EV additional incentives, he had to take out the smallest loan. It is just a sucking joke.
I was thinking about making my cash payment. However, I have decided to invest that $60,000 in a 10% yield fund. I will save roughly $7k on the automobile purchase if I pay the interest over three years. Or perhaps nearly 10,000 over five years. It seems like a better course of action. However, according to my dealer, you can use an open loan to pay it off the next month.