topic Re: I signed an auto loan with Ally Financial and just found out that I would have to pay a penalty in Auto Loans

I signed an auto loan with Ally Financial and just found out that I would have to pay a penalty if..

Anonymous — Fri, 25 Jan 2019 00:11:51 GMT

I signed an auto loan with Ally Financial and just found out that I would have to pay a penalty if I paid additional payments on top of my standard monthly payment and if i decided to pay it off, I would be forced to pay an unknown amount in penalties.

I was rushed at the dealership and the Finance guy was a quick talker and a distracter, as he worked hard to sell me an extended warranty, knowing I had every intention of paying this car off quickly.

Now, i know most of you are asking, "Idiot, did you read the contract?"

But, keep in mind I had spent nearly nine hours negotiating a decent deal and was intentionally distracted from reading the contract, as he was pushing for and explaing the benefits of an extended warranty.

Plus, I read a ton of reviews, after the fact that Ally Finacial is one of the worst out there, as they aren't customer friendly.

I live in Florida and don't know the law, but is there a way to cancel the contract and go with a lender, who doesn't punish you for paying extra or paying the car off early?

Or are the majority of leanerds like this?

Thanks in advance.

Re: I signed an auto loan with Ally Financial and just found out that I would have to pay a penalty

Anonymous — Fri, 25 Jan 2019 01:13:04 GMT

This is odd. We just paid off a car loan with ally (4 years early).... we didn't pay anything extra. Actually we overpaid them by one payment on accident and they promptly refunded the overpayment.

Re: I signed an auto loan with Ally Financial and just found out that I would have to pay a penalty

Anonymous — Fri, 25 Jan 2019 04:26:26 GMT

What exactly does your note say? I would be very surprised if Ally had a prepayment penalty.

Re: I signed an auto loan with Ally Financial and just found out that I would have to pay a penalty

Anonymous — Fri, 25 Jan 2019 16:55:49 GMT

Well, to paraphrase it stated that "Additional, Double and principal Only Payements could incur a penalty."

Re: I signed an auto loan with Ally Financial and just found out that I would have to pay a penalty

Anonymous — Fri, 25 Jan 2019 20:26:55 GMT

Don’t paraphrase be exact. But could does not mean will! They may be talking about some payment methods may have additional costs. There is not enough information here to answer.

Keep your questions to one post not 5.

Re: I signed an auto loan with Ally Financial and just found out that I would have to pay a penalty

Anonymous — Fri, 25 Jan 2019 20:36:10 GMT

@Lgh97
We have to keep this FSR. 👍

Re: I signed an auto loan with Ally Financial and just found out that I would have to pay a penalty

bigpoppa09 — Fri, 25 Jan 2019 21:45:20 GMT

I had a Loan with Ally in 2016 paid it off early didn't incur a penalty.

Re: I signed an auto loan with Ally Financial and just found out that I would have to pay a penalty

MakeItAMudLight — Sat, 26 Jan 2019 15:46:45 GMT

I've never seen an Ally loan with a prepayment penalty. Doens't mean it isn't possible though. Did you get any sort of incentive to finance through Ally? If so you may have to wait 3-6 months to refinance to prevent any chargebacks.

Re: I signed an auto loan with Ally Financial and just found out that I would have to pay a penalty

Anonymous — Sat, 26 Jan 2019 20:41:08 GMT

No incentives just an approval after Capital One Auto Finance turned me down.

My interest is 9%

I've watched a ton of YouTube videos and read several blogs that states, waiting six months to refinance is a myth.

Re: I signed an auto loan with Ally Financial and just found out that I would have to pay a penalty

Anonymous — Sat, 26 Jan 2019 20:43:29 GMT

Yes, but did your contract actually state: "Additional payments and/or Principle Only Payments" will incur a Prepayment Penalty?

Re: I signed an auto loan with Ally Financial and just found out that I would have to pay a penalty

Anonymous — Sat, 26 Jan 2019 20:47:24 GMT

Thanks,

I'm hoping I'm being overly cautious as I've yet to hear from Ally Auto Finance, because the loan is only ten days old.

Maybe that section in the contract is default by the "Dealer" and not Ally and maybe Ally will allow me to pay addition payments and Priciple only payments without a penalty and/or fee.