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Chrysler Capital Interest rates and refi questions

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Chrysler Capital Interest rates and refi questions

Looking at getting a new Jeep shortly for my college graduation gift for myself. I've started doing some research and it seems like most of the rebates are only available if you finance through Chrysler Capital. Does anyone know roughly want they're financing at? My score is about 720, a local credit union will give me a 5 year loan at 3.74%. The dealers won't even discuss interest rates without saying "fill out an application". 

 

Obviously with the rebates they're likely making up the difference with raising the interest rate. That makes me wonder what about getting the loan through Chrysler, then after having it for 6 months (the minimum time to get the rebate) refinance it? I have two main concerns... 

1. Would having two inquires on my credit look bad in this short of time look bad? (last one was about 13 months ago)

2. Do they usually structure the loan so that you can pay the principal off and save on the interest for an early pay off? Or do they fix the interest amount and you pay the same no matter when you pay it off? 

 

Thanks for all the help! I'm a finance major so I really enjoy the details. 

Message 1 of 10
9 REPLIES 9
Valued Member

Re: Chrysler Capital Interest rates and refi questions

I believe the rebates should apply with any lender. I think its usually something like get the rebate or get the special/promotional financing rate. You should be able to go on their website and they usually will advertise their best rates or promo rates. Then call the dealership and ask for a finance manager. They should be able to tell you what score you need to qualify for the best rate. Also which bureau they will pull.

As for the multiple pulls on your credit, are you saying you applied recently with your bank and plan to apply again in 13 months? If so, then I'm sure your going to get another HP regardless of who you go with. Your bank and the dealer will both want a credit report. When you do go to apply you should be able to have your credit pulled for a car loan multiple times without it impacting your credit. So long as its within a specific time frame. Not sure exactly what that window is, a month I think?

I Want to say most lenders will allow you to make payments to the principal to pay off early and save on interest. Just double check with them before you sign anything.

The promotional financing is usually better rates than what the bank offers but I think in a lot of cases it's for shorter terms. I have seen cases of low interest rates for longer terms though.

I think your score should be fine to get you approved if you have the income for it. Those jeeps can get pricey.

Goodluck!
Message 2 of 10
Frequent Contributor

Re: Chrysler Capital Interest rates and refi questions

You will lose bonus cash for financing with Chrysler Capital.. The others you will get.
Message 3 of 10
Regular Contributor

Re: Chrysler Capital Interest rates and refi questions

legally theres no prepayment penalty and no minimum time to refinance..now it may be a jerk move to do that if you got great service, but legally you can. if you do it too soon dealer has to pay back bank.

Message 4 of 10

Re: Chrysler Capital Interest rates and refi questions


@Masteringmyscore wrote:
I believe the rebates should apply with any lender. I think its usually something like get the rebate or get the special/promotional financing rate. You should be able to go on their website and they usually will advertise their best rates or promo rates. Then call the dealership and ask for a finance manager. They should be able to tell you what score you need to qualify for the best rate. Also which bureau they will pull.

As for the multiple pulls on your credit, are you saying you applied recently with your bank and plan to apply again in 13 months? If so, then I'm sure your going to get another HP regardless of who you go with. Your bank and the dealer will both want a credit report. When you do go to apply you should be able to have your credit pulled for a car loan multiple times without it impacting your credit. So long as its within a specific time frame. Not sure exactly what that window is, a month I think?

I Want to say most lenders will allow you to make payments to the principal to pay off early and save on interest. Just double check with them before you sign anything.

The promotional financing is usually better rates than what the bank offers but I think in a lot of cases it's for shorter terms. I have seen cases of low interest rates for longer terms though.

I think your score should be fine to get you approved if you have the income for it. Those jeeps can get pricey.

Goodluck!

I meant to say I have one pull from a year ago for a credit card. The 3.74% was just an estimate from the credit union. 

 

I didn't know one HP would good for multiple lenders...that's good to know. 

I'll have to look at the rebates...the one dealer I talked to said I'd have to finance it through them. 

Message 5 of 10
Valued Contributor

Re: Chrysler Capital Interest rates and refi questions


@elwoodblues27 wrote:
...the one dealer I talked to said I'd have to finance it through them. 

Sometimes the dealers speak untruths. Check it out.

And good luck.

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Message 6 of 10
Valued Contributor

Re: Chrysler Capital Interest rates and refi questions

There are very often rebates tied to financing with the automaker's capitve finance arm.  

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Message 7 of 10

Re: Chrysler Capital Interest rates and refi questions

Thanks for all the help guys! 

Does any one have any ideas what restrictions there might be on the refi? Like if I refi right away do I risk loosing the rebate? 

 

Message 8 of 10
Established Member

Re: Chrysler Capital Interest rates and refi questions


@elwoodblues27 wrote:

Thanks for all the help guys! 

Does any one have any ideas what restrictions there might be on the refi? Like if I refi right away do I risk loosing the rebate? 

 


If you finance with Chrysler Capital there usually is some sort of bonus, such as $1,000. Once the loan is yours, the rebate/bonus is yours. Refinancing would not effect that $1,000 bonus. However, read the fine print just in case. 

Message 9 of 10
Frequent Contributor

Re: Chrysler Capital Interest rates and refi questions

Just a pointer here, if you end up using Chrysler Capital for financing and the interest rate is higher than what you can get elsewhere, often it is beneficial to still take the captive financing to get the rebates then re-finance later. In addition, mentioning to the F&I mgr before you do paperwork, that the rate is too high and you will be refinancing almost immediately afterward's to a better rate through your CU could net you a better rate through Chrysler Capital.

 

Dealer's have reserve agreement's set up with bank's, and typically they are set up in a 75/25 split fashion (dealer keeps 75% of increased finance charge from marking up the rate over what the bank approved), with this split set up they are usually held on a 90-180 day chargeback schedule. Meaning if a customer buy's a vehicle, finances with the dealer, dealer marks up the rate and receives dealer reserve income, and then the customer immediately refinances through their CU, the dealer will be charged back 100% of the reserve they earned due to early payoff. So when a F&I Mgr in notified of this, they will probably do one of three things, 1) they will just hope you don't actually refi so soo in hopes to keep 100% of their reserve profit, 2) they will lower the interest rate to something that you are OK with (they can only lower the rate so much), and finally..3) they will lie to you and say you aren't eligible for rebates, or that you can't payoff the loan that early with some BS reason which is false.

 

So essentially by taking the rebates and financing through Chrysler Capital, and telling the F&I mgr that you plan to refinance right away due to the higher rate than you expected, they may decrease the rate charged to you in order to hopefully keep some reserve profit.

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