MAC Financing early payoff
#1
Registered
Thread Starter
MAC Financing early payoff
Hi
Soon to buy a new 06.
If you do some financing thru MAC in order to get the extra $1000 current rebate, and pay it off early, exactly how is the interest treated? Do you still pay what the full interest would have been if you paid it off normally?
Thanks.!
Soon to buy a new 06.
If you do some financing thru MAC in order to get the extra $1000 current rebate, and pay it off early, exactly how is the interest treated? Do you still pay what the full interest would have been if you paid it off normally?
Thanks.!
#3
Registered User
Join Date: Oct 2006
Location: 562 area code
Posts: 132
Likes: 0
Received 0 Likes
on
0 Posts
hey wishbone, did the same thing, I took advantage of their MAC loan with the rebate. no you don't pay the full interest. Also keep in mind that there is NO early payoff penalty. Incase the dealership tells you something like, you can't pay it off within the first 3 months, as they did with me. I found out when I refinanced on the second month. So, if you plan on refinancing, do it early. Good luck with your purchase.
#4
Registered
Join Date: Jul 2004
Location: los angeles, ca
Posts: 463
Likes: 0
Received 0 Likes
on
0 Posts
I was told it can't be paid off before 3 months today too. What's in it for the dealer when we wait 3 months? There has to be some reason they want that even though it's not really necessary (it's not in writing anywhere right?).
#5
The dealer tell you this so they dont lose on the finance side of things. I used to work for Mazda and I would do the same thing.....especially with a cash buyer to convert to finance. But what I would say is that as a courtesy to the dealer, please dont pay off for 90 days. The small amount of interest paid on the first 3 payments is negligible.....especially if a cash buyer was going to pull $$ out of an investment. He would be losing money otherwise.
If you like your dealer (which most of our customers did) let them get there $$ at hardly any cost to you. If they are jerks....screw 'em. But remember these finance guys have a job just like you and me.....you wouldn't like some one to take $$ from you.
I know I will probably get flamed for this....especially being my first post, but there's the answer to the question.
If you like your dealer (which most of our customers did) let them get there $$ at hardly any cost to you. If they are jerks....screw 'em. But remember these finance guys have a job just like you and me.....you wouldn't like some one to take $$ from you.
I know I will probably get flamed for this....especially being my first post, but there's the answer to the question.
#6
Registered
Join Date: Jul 2004
Location: los angeles, ca
Posts: 463
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by tbomb887
The dealer tell you this so they dont lose on the finance side of things. I used to work for Mazda and I would do the same thing.....especially with a cash buyer to convert to finance. But what I would say is that as a courtesy to the dealer, please dont pay off for 90 days. The small amount of interest paid on the first 3 payments is negligible.....especially if a cash buyer was going to pull $$ out of an investment. He would be losing money otherwise.
If you like your dealer (which most of our customers did) let them get there $$ at hardly any cost to you. If they are jerks....screw 'em. But remember these finance guys have a job just like you and me.....you wouldn't like some one to take $$ from you.
I know I will probably get flamed for this....especially being my first post, but there's the answer to the question.
If you like your dealer (which most of our customers did) let them get there $$ at hardly any cost to you. If they are jerks....screw 'em. But remember these finance guys have a job just like you and me.....you wouldn't like some one to take $$ from you.
I know I will probably get flamed for this....especially being my first post, but there's the answer to the question.
#7
RX-8 dreamer
Join Date: Oct 2004
Location: Bellevue, WA & Portland, OR
Posts: 557
Likes: 0
Received 0 Likes
on
0 Posts
The interest piles up quick. I refinanced about 4 or 5 weeks after I bought and ended up paying over $300 in interest already. That's 1/3rd of the $1000 rebate I had bought the car with. Refinance as soon as you drive that thing off the lot otherwise you lose the entire rebate in that whole 90 days scam.
#8
Its hardly a scam. As far as the what amount the dealer gets out of it...its usually a flat payout. And no, its not the $1000. Usually around $200+very small % of the rate given. This is the case at every dealership for every manufacturer, if you finance through the dealer. Regardless which bank they use. This is just extra incentive for you to use mazda's bank. They make they're money back, or close to it. There rates are somewhat competitive....especially for middle of the road credit. My brother bought a 6 from me awhile back and used the MAC rebate. Refinanced about a year later. Wife works at a credit union so his rate was about 4 points lower.
As far as $300 in interest in 3 months....that could be the case with 0 down and a 10% or higher rate. This usually isnt the case for most RX8 buyers.
As far as $300 in interest in 3 months....that could be the case with 0 down and a 10% or higher rate. This usually isnt the case for most RX8 buyers.
#9
Registered User
Join Date: Jan 2007
Location: Missouri
Posts: 7
Likes: 0
Received 0 Likes
on
0 Posts
![Talking](https://www.rx8club.com/images/icons/icon10.gif)
I did the MAC financing in Nov 06 and paid it off in 2-3 wks without any problems. They honored the rebate & only paid a few bucks on their high interest (2-3 wks worth). No problems seen.
Awesome car so far!
Nergal
Awesome car so far!
Nergal
#10
Originally Posted by wishboneracing
Hi
Soon to buy a new 06.
If you do some financing thru MAC in order to get the extra $1000 current rebate, and pay it off early, exactly how is the interest treated? Do you still pay what the full interest would have been if you paid it off normally?
Thanks.!
Soon to buy a new 06.
If you do some financing thru MAC in order to get the extra $1000 current rebate, and pay it off early, exactly how is the interest treated? Do you still pay what the full interest would have been if you paid it off normally?
Thanks.!
BUT . . . You must make 3 payments to get the MAC cash. ( cash back/$1000 off )
There is no prepayment penalty as long as you give them 3 months payments, then you can pay it off in full. So you only have to pay interest for 3 months.
Simple interest loans make for happy customers
#11
Registered
Join Date: Jul 2004
Location: los angeles, ca
Posts: 463
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by rglbegl
Simply put. NO. You pay no interest.
BUT . . . You must make 3 payments to get the MAC cash. ( cash back/$1000 off )
BUT . . . You must make 3 payments to get the MAC cash. ( cash back/$1000 off )
#12
Originally Posted by tbomb887
The dealer tell you this so they dont lose on the finance side of things. I used to work for Mazda and I would do the same thing.....especially with a cash buyer to convert to finance. But what I would say is that as a courtesy to the dealer, please dont pay off for 90 days. The small amount of interest paid on the first 3 payments is negligible.....especially if a cash buyer was going to pull $$ out of an investment. He would be losing money otherwise.
If you like your dealer (which most of our customers did) let them get there $$ at hardly any cost to you. If they are jerks....screw 'em. But remember these finance guys have a job just like you and me.....you wouldn't like some one to take $$ from you.
I know I will probably get flamed for this....especially being my first post, but there's the answer to the question.
If you like your dealer (which most of our customers did) let them get there $$ at hardly any cost to you. If they are jerks....screw 'em. But remember these finance guys have a job just like you and me.....you wouldn't like some one to take $$ from you.
I know I will probably get flamed for this....especially being my first post, but there's the answer to the question.
So if the paperwork does not say you can't pay it off early, sign it, and pay it off as soon as you can or want to. If the dealer and/or MAC do not like it, then they should not offer you the loan and the rebate (or not charge such a rip off high rate).
Dennis
#13
Originally Posted by map
Now I'm confused. Wasn't it just established that the only thing contingent on 3 months of payments is a bank to dealer payoff? The $1000 is good no matter when it's paid off.
Dennis
#14
Registered User
Join Date: Aug 2005
Location: Archdale, NC
Posts: 11
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by dwynne
The first thing wrong with your post is "The small amount of interest paid on the first 3 payments is negligible" - wrong. On a simple interest loan the first payments have a LOT of interest in them. The percentage of interest goes down with each payment, but it is still a lot of money to leave on the table. For example, if you borrowed $25,000 at 7% for 60 months, your payments would be $496.06 per month. In the first payment, $145.83 would be interest, in the second it would be $143.80, in the third $141.75. So if you wait "90 days" from the day you buy the car and have made 2 payments you will be out $289.63 in interest just for being nice to the dealer? The more you borrow, the higher the rate, the longer the term the worse it gets. $30k at 8% for 72 months would be $397.83 in interest in just two payments.
So if the paperwork does not say you can't pay it off early, sign it, and pay it off as soon as you can or want to. If the dealer and/or MAC do not like it, then they should not offer you the loan and the rebate (or not charge such a rip off high rate).
Dennis
So if the paperwork does not say you can't pay it off early, sign it, and pay it off as soon as you can or want to. If the dealer and/or MAC do not like it, then they should not offer you the loan and the rebate (or not charge such a rip off high rate).
Dennis
#16
Registered
Join Date: Jul 2004
Location: los angeles, ca
Posts: 463
Likes: 0
Received 0 Likes
on
0 Posts
Well I just refinanced. Did it two weeks after purchase, as soon as i could basically. Hope MAC doesn't come after me!
I went through email and called MAC directly, through both channels they confirmed that I can pay off with no penalty and will not lose the rebate. There is nothing in my paperwork that says otherwise either. Dealer was insisting MAC would come after me if I didn't make 3, 4, or 5 payments (yes, 3 different people at the dealer gave me 3 different numbers). Screw them in the butt I say. They gave me a **** rate and lied to me. If they had been upfront and given me a reasonable rate in the first place I'd have stayed with them, but they gave me 10.4% even when I already knew I had good credit. On my refi I got the tier 1 rate and walked out with 5.69%.
![Smilie](https://www.rx8club.com/images/smilies/smile.gif)
I went through email and called MAC directly, through both channels they confirmed that I can pay off with no penalty and will not lose the rebate. There is nothing in my paperwork that says otherwise either. Dealer was insisting MAC would come after me if I didn't make 3, 4, or 5 payments (yes, 3 different people at the dealer gave me 3 different numbers). Screw them in the butt I say. They gave me a **** rate and lied to me. If they had been upfront and given me a reasonable rate in the first place I'd have stayed with them, but they gave me 10.4% even when I already knew I had good credit. On my refi I got the tier 1 rate and walked out with 5.69%.
Thread
Thread Starter
Forum
Replies
Last Post
Shankapotamus3
Series I Trouble Shooting
28
03-14-2021 03:53 PM
Touge
Canada Forum
1
09-23-2019 06:45 PM
Touge
Canada Forum
0
09-01-2015 10:47 PM