Hot Damn...Those guys at Mazda Finance are Fast!

[SomeGuyFromNYC]

If any of you actually believe you have to wait to pay off your loan because the dealer said you must, you are being bamboozled to the highest degree. I think by LAW they can't do this, and in the fine print on all of your financial paperwork, it will say there is NO penalty if you pay it off sooner. My Mazda is financed through CAPITAL ONE AUTO FINANCE, and it says there is NO penalty. My last car, a Ford, financed through Ford Financial also said there is NO penalty to pay it off sooner.

Do yourselves all a favor and if you can pay it off on the first payment, do it. Or else you're only throwing money away.

 

[AllezDada]

Paid mine off as soon as I got my statement (2 weeks after buying the car). Paid $9 interest.

 

[mnm]

If any of you actually believe you have to wait to pay off your loan because the dealer said you must, you are being bamboozled to the highest degree. I think by LAW they can't do this, and in the fine print on all of your financial paperwork, it will say there is NO penalty if you pay it off sooner. My Mazda is financed through CAPITAL ONE AUTO FINANCE, and it says there is NO penalty. My last car, a Ford, financed through Ford Financial also said there is NO penalty to pay it off sooner.

Do yourselves all a favor and if you can pay it off on the first payment, do it. Or else you're only throwing money away.

I agree with what you are saying. It seems that the dealer wants you to hold the loan for 3 payments because as others stated above they get some type of commission if that occurs. There certainly is nothing in the finance paperwork that indicates you must do so and does state you can do prepayment without penalty. I've dealt with my dealer on a couple of cars now and they have been pretty fair so will probably do the 3 payments with the first one though almost entirely paying off the loan in order to reduce the overall finance charges.

 

[GP 2004]

Do yourselves all a favor and if you can pay it off on the first payment, do it. Or else you're only throwing money away.

Eh...Maybe - maybe not. Depends on individual circumstance. I would have to withdraw money from my retirement account that is earning around 6% to pay off a loan on the first payment that charges me 3%. Even I can do that math.

 

[SomeGuyFromNYC]

Eh...Maybe - maybe not. Depends on individual circumstance. I would have to withdraw money from my retirement account that is earning around 6% to pay off a loan on the first payment that charges me 3%. Even I can do that math.

Obviously it varies from person to person. If however, the only reason a person is NOT paying it off immediately, when it would benefit them, is because the dealer told them they could not - that is a lie.