steph280

We decided to finance through mbusa because of the $1500 kickback they offer. We plan to either pay it off or find somebody with rate lower than mbusa's 5.9%. But since we're paying most interests only in majority of the payments toward the beginning, doesn't that eat into the $1500 kickback? I wonder if there are any penalty to pay it off in the first 2 months?

Suggestions are appreciated.

LeaseCompare

Not sure. Have you asked the dealer what your options are?

revstriker

I always ask when financing if there is any penalty for early payment. I would rather not finance this way if possible. With interest rates being low, plus never knowing what will happen in the next 4-5 years, the ability to re-finance is valuable to me.

I recently purchased a SUV and financed it through GMAC in order to get the rebate. Interest rate was around 8.5%. One month later, I refinance to a much lower interest rate. No penalty. Always good to go over all of your finance options when buying a car, and crunch the numbers each way to see what works best for your situation.