Purchase with Rivian finance and then refinance?

[ozziegt]

Hey all,

Our guide has put us on the calendar to pick up our Rivian on the 30th. The problem is that our lender is not going to be ready until next week or maybe the week after. I was thinking about financing with Rivian and then just refinancing in 3-4 weeks. Is this a bad idea?

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[ozziegt]

Should have googled first, not a good idea because it will affect your credit score and that would affect how good of a rate you can get on the other loan. There is also likely a 2-3 month wait while the title, etc gets transferred to the first lender.

 

[TollKeeper]

Tell your guide something came up, and you need to push your DEL out 1-2 weeks.

 

[ozziegt]

I'm sure the guide won't have a problem pushing out the delivery date. It's my wife that I'm worried about.

 

[Mobius1]

If you refinance, you would have to do it as a used car loan, which tend to have higher rates. Nothing I’ve checked recently but that’s what I have seen historically. Why is your lender taking so long? You have to let the guide know, if your steps aren’t complete online, they will cancel your appointment.

 

[emoore]

I did it and my credit wasn't negatively impacted. Made 1 payment to Rivian (Chase) and refinanced with my credit union for 2% less.

 

[EVTrukHog]

Most lenders will enable you to refinance a new car purchase within 6 months at the new car rates. A refinance should not hurt your credit rating. Rivian may have gotten easier to work with outside lenders, but last year it was much easier to utilize Rivian financing and then either pay it off or refinance with another institution.

 

[ozziegt]

If you refinance, you would have to do it as a used car loan, which tend to have higher rates. Nothing I’ve checked recently but that’s what I have seen historically. Why is your lender taking so long? You have to let the guide know, if your steps aren’t complete online, they will cancel your appointment.

Like said above, it would still be a new car loan. It's taking so long because folks found out about the low rates at this credit union and they are flooded with applicants.

Hmm it sounds like my plan is actually viable.

 

[gregtay]

If you refinance, you would have to do it as a used car loan, which tend to have higher rates. Nothing I’ve checked recently but that’s what I have seen historically. Why is your lender taking so long? You have to let the guide know, if your steps aren’t complete online, they will cancel your appointment.

I have done exactly what the OP wants to do many times with no issues and did it again with my Rivian in June. Many lenders consider any current model vehicle to be "new" with the same rates for refinancing a loan as a "new" purchase. If your lender doesn't allow for this, then find a new lender. My credit union starts the process of refinancing 10 days after I purchase and they take care of everything. Yes ,sometimes it is months before they get the title all figured out, but it doesnt impact me, i let the credit union deal with it. And who cares if it slightly lowers your credit score, it's temporary and really doesn't impact things. The multiple inquires into your credit should be treated as a single inquire(impact wise) because they happen I'm the same time frame. The 1st loan gets paid off and goes away.

 

[Mobius1]

Like said above, it would still be a new car loan. It's taking so long because folks found out about the low rates at this credit union and they are flooded with applicants.

Hmm it sounds like my plan is actually viable.

Good to know. Which credit union, maybe I’ll refi also for a lower rate ?

 

[ozziegt]

Library of congress? I just got my rates from them, and they're not as good as the reddit post. 836 credit score, 4.89 for 4 years was their lowest. 7 years was 5.89.

Still better than Rivian (Chase), but worth shopping around.

Yes. I think they are flooded with Rivian purchasers after the reddit post last week. I think their advertised rates must include the discounts for having a checking account, using autopay etc.

Thanks everyone for the reassurance, I think I am going to go with the Rivian financing and refi. Definitely takes a lot of stress and hassle out of the purchase process.

 

[fr4c]

USSFCU is still 4.99% for 60 months last I checked. Once I was a member, the loan process took only 2 days to process and approve.

 

[Electrified Outdoors]

Its only a few more days. If the rate is better I would wait for your lender. I was out of down and they pushed me out 5 days to accommodate.

 

[Steve A.]

Hey all,

Our guide has put us on the calendar to pick up our Rivian on the 30th. The problem is that our lender is not going to be ready until next week or maybe the week after. I was thinking about financing with Rivian and then just refinancing in 3-4 weeks. Is this a bad idea?

Same thing happened to me. I applied for and got an immediate answer from Rivian financing (Chase) and the rate was ridiculously high, so then I applied to BoA which gave me an immediate answer but still higher than expected (I had just paid off my BoA Audi Q7 auto loan early due to my impending R1S purchase) and I also applied for an auto loan via my credit union which I knew would take too long to give me an answer but I knew would have the lowest rate.

As expected I ended up purchasing my R1S using my approved BoA auto loan, then when my credit union approval came through a couple weeks later, I refied for the lowest rate.

Sure, my credit report shows multiple auto loan requests in a month but also shows I paid off two of them and have a much lower monthly loan payment amount which is a net gain.

 

[Steve A.]

Should have googled first, not a good idea because it will affect your credit score and that would affect how good of a rate you can get on the other loan. There is also likely a 2-3 month wait while the title, etc gets transferred to the first lender.

Just submit applications at the same time and it shouldn't affect your loan approvals since they wouldn't be reported yet, esp. for instant approvals.

Yes, it did take 60 days for my initial loan title work to be completed and I received title w/ the initial lender as a lien, but my credit union turned my new auto loan approval into a refi-auto approval since my original approval was valid for 90 days. Check w/ your second lender to see how long your approval is good.

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