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I live in the US in Massachusetts I have been approved for a TFS loan, along with the student incentive and the $900 incentive for a RAV4 Hybrid. But The rate for the loan is 4.39% for 60 months which is high compared to my bank. I was ok moving forward until the dealer told me I would need to make 6 payments before I could refinance. On the TFS website they don’t list 6 payments as a requirement that I can find at least. Does anyone else know if this is a real thing or is the dealer just covering themselves from a TFS penalty or chargeback for one of the incentives?
 

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I live in the US in Massachusetts I have been approved for a TFS loan, along with the student incentive and the $900 incentive for a RAV4 Hybrid. But The rate for the loan is 4.39% for 60 months which is high compared to my bank. I was ok moving forward until the dealer told me I would need to make 6 payments before I could refinance. On the TFS website they don’t list 6 payments as a requirement that I can find at least. Does anyone else know if this is a real thing or is the dealer just covering themselves from a TFS penalty or chargeback for one of the incentives?
I live in Massachusetts also.
I took the TFS financing to get the incentive when I bought my RAV4. At the time, the rate was 5.99%.
I made 3 payments, then refinanced. No issues at all.
 

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Ask the dealer to show you exactly where in the TFS finance contract it says you must make a minimum of 6 payments before you can refinance. Either the wording is in there or it isn’t.

If it’s some made-up condition by the dealer, rather than TFS, you can just tell them “No”.
 

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I'm wondering the same thing. I'm also in Massachusetts but they told me I need to make 3 payments (Boch Toyota). I'm going to do a little reading in the agreement tonight.

How does the "TFS cash" come back to you? Is it taken out of the loan amount show up on your bill as a credit?
 

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I believe they are telling you that because it takes 6 payments for them to get whatever commission is coming there way if you make 6 payments. I don't see an issue with refinancing as soon as possible if your credit is good.
 

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I just looked at my loan docs and the $900 TFS Cash is already taken out of the car price, right next to my down payment.

It also says right on the front of the loan docs that there is no penalty for prepayment of the loan. I agree that they are just bullshitting us on the minimum number of monthly payments to make more money on their end.
 

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As soon as I got my account number I refinanced. There’s no penalty, no payments required, no nothing. I saved 1250$ with their TFS promo and refinanced 2% lower at my credit union. Don’t listen to dealers about that stuff.
 

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Mine was refinanced a week after delivery. Read the contract, it can be payed off at any time.
This. I called my bank the next day and had the loan fully refinanced in a couple weeks, all said and done. The dealer loses a bit, but that is their gamble to take.
 
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