Are there any drawbacks to refinancing after I get dealer incentives from a car loan?

The salesperson at the dealership is willing to knock $2,000 off the price of a Honda Accord if I finance through them. She told me that I can refinance after four months. Are there any drawbacks to getting these incentives on a car loan and then refinancing?

Answer
“You shouldn’t have any problems with this arrangement. In actuality, you don’t even have to wait four months to refinance.
Unless your loan contract specifically states that you need to wait four months or there are prepayment penalties, you should be fine to refinance whenever you want.
Before agreeing to the car loan, review all the terms and conditions. You’ll also have to budget for car insurance on this loan, so make sure to factor that into your monthly pricing.
Whether or not you refinance, your lender will require full coverage.
Full coverage can be pricey, especially if you use the lender’s insurance, but you can save money by comparing rates. Jerry does all the hard work for you, pulling quotes from the top 50 companies and delivering the best deals to your phone in minutes. Jerry even does all the paperwork for you so you can just relax and enjoy your new car.”
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Eric Schad
Answered on Aug 10, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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