I signed an auto loan with Ally Financial and just found out that I would have to pay a penalty if I paid additional payments on top of my standard monthly payment and if i decided to pay it off, I would be forced to pay an unknown amount in penalties.
I was rushed at the dealership and the Finance guy was a quick talker and a distracter, as he worked hard to sell me an extended warranty, knowing I had every intention of paying this car off quickly.
Now, i know most of you are asking, "Idiot, did you read the contract?"
But, keep in mind I had spent nearly nine hours negotiating a decent deal and was intentionally distracted from reading the contract, as he was pushing for and explaing the benefits of an extended warranty.
Plus, I read a ton of reviews, after the fact that Ally Finacial is one of the worst out there, as they aren't customer friendly.
I live in Florida and don't know the law, but is there a way to cancel the contract and go with a lender, who doesn't punish you for paying extra or paying the car off early?
Or are the majority of leanerds like this?
Thanks in advance.
Message 1 of 11
This is odd. We just paid off a car loan with ally (4 years early). we didn't pay anything extra. Actually we overpaid them by one payment on accident and they promptly refunded the overpayment.
Message 2 of 11
What exactly does your note say? I would be very surprised if Ally had a prepayment penalty.
Message 3 of 11
Well, to paraphrase it stated that "Additional, Double and principal Only Payements could incur a penalty."
Message 4 of 11
Don’t paraphrase be exact. But could does not mean will! They may be talking about some payment methods may have additional costs. There is not enough information here to answer.
Keep your questions to one post not 5.
Message 5 of 11
I had a Loan with Ally in 2016 paid it off early didn't incur a penalty.
I've never seen an Ally loan with a prepayment penalty. Doens't mean it isn't possible though. Did you get any sort of incentive to finance through Ally? If so you may have to wait 3-6 months to refinance to prevent any chargebacks.
Message 8 of 11
No incentives just an approval after Capital One Auto Finance turned me down.
My interest is 9%
I've watched a ton of YouTube videos and read several blogs that states, waiting six months to refinance is a myth.
Message 9 of 11
Yes, but did your contract actually state: "Additional payments and/or Principle Only Payments" will incur a Prepayment Penalty?
Message 10 of 11† Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.
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