Can i use a car loan from my credit union to pay off the dealership?
I purchased a new honda accord and decided to finance through the dealership, I had already been pre-approved for an auto loan by my credit union at a slightly lower APR. Can I use my check from the credit union to pay off the dealership? I mostly accepted to finance through Honda because they offered me a $500 rebate.
As the others have said, check to see if there's a penalty for paying off early. Then do the Math, compare the interest rates and factor in any penalties and go with what ever costs you less.
If they offered you $500 rebate, I would suspect you might have to give that back or something.
But, I'm not sure. Call the lender & ask. You didn't borrow from the dealer, you borrowed from a lender.
Typically there's no penalty to paying off a car loan early but if you got a kickback, there probably is.
(Fine print that says something like you forgo the $500 if the loan is paid off early)
Dealers are sneaky and most of their offers are not good for you.
There's probably a penalty - loan officers make money by securing you into a full term loan. Breaking those terms usually costs more than it's worth.
Yes just check that there's no early payoff penalty
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