Nitin

iTrader: (1)

Anyone know how soon you can pay off? Salesman here is saying not for a few months. Is that true?

thoiboi

Read your contract and see if there's a prepayment penalty

Nitin

iTrader: (1)

Thanks. Brother is filling out the credit paperwork now so will see what it says.

KaMLuNg

iTrader: (5)

normally cars don't have a prepayment penalty...

YeuEmMaiMai

State side there is no pre payment penalty. It is illegal to charge one in most if not all states. The reason the dealer most likely said wait was they won't get their kick back from the financing company if you used them.

juniorbean

iTrader: (5)

I've worked out deals with dealerships before where they give me a better deal if I finance versus paying cash. In those cases I had to make two payments before paying off the loan to ensure they got their commission from the bank for the loan.

So YeuEmMaiMai is likely correct... the odds are there's no pre-payment penalty, the salesman just wants to make sure he gets his commission.

Booya4139

Did the same thing when i bought my CPO TL. I was fighting out trade in value and car cost, dealership was playing both sides while i was simply negotiating the delta between the two and had a check in hand to write out the difference. Got to my number by agreeing to finance. Took the smallest loan they offered and paid it off the second month.