Paying off on next day after financing

[yearn]

Hi folks,

I saw hyundaiusa.com offers bonus cash on 2011 Genesis:

•Special APR financing. As low as 0% for 36 mos, 0.9% for 48 mos PLUS $1,000 Bonus Cash (8/2/2011 - 8/31/2011)

My question is...

what if I finance and pay it off on the next day?

This way I can save $1,000 sub a marginal interest (for a day,) can't I?

Any penalty for early payment? Guess it wouldn't hurt my credit score.

Just being curious...

 

[mikec]

The way the paperwork was written when I bought my 2009 basically said the $1000 is forfeit if you pay off the loan prior to the 3rd payment. Or was it 3 payments and then pay it off? Something like that. So if you get a loan and then rapidly pay it off... I guess a new $1000 balance would magically re-appear.

I suppose you could put 90% down and have a dinky loan... thus your interest payments for those three months would be almost nothing and you'd net nearly a grand from the process. I don't remember if the paperwork had any words limiting the down payment to values that'd result in >$1000 in interest payments for those three months. Another side benefit though: many states base sales & property taxes on the actual purchase price of the vehicle - so cutting a grand off the price may lower your taxes for a couple of years by a few bucks.

mike c.

 

[nextcar]

i got the 0% for 36 months, so there's no reason to pay it off sooner.
if you get the 0.9% for 4 years, you should ask them about the prepayment penalty.
don't you think you should do the 36 month loan? you could keep your cash in a savings account earning about 1% per yr, which adds up to about $1000.

 

[Rambler16]

at 0 percent or even .9 percent, why would you want to pay it off?

 

[tompass]

I took the loan incentive and paid it off after about 4-5 weeks. I had to wait for the paperwork to process through the lender and get an accurate pay off figure. No penalty.

 

[yearn]

Thanks everyone for helpful comments.

at 0 percent or even .9 percent, why would you want to pay it off?

Not sure if i'm eligible for .9 percent with my mediocre score.

But thought $1,000 is for everyone.