Auto Refinance loans - higher APR?

Here’s the situation:

Looking to purchase a 2021 Ford F-150. There is a $1,000 rebate if financed through Ford Credit. The rate offered through Ford Credit is higher than the rate offered by PenFed. However, there’s that $1,000 rebate. If I take the Ford Credit financing then refinance the truck (as soon as I can) will the refinanced APR be higher than a non refinance?

For example, If Penfed is offering 2.99% on a brand new truck, if I go to refinance that truck with them 90 days later (is truck used now?) is that interest rate going to be higher? If so, how much? I wonder if it’s enough to make that $1k incentive disappear.

It depends on how they define new car. Some say it has originate at the dealer, the vast majority say it much be previously untitled. PenFed says on their website:

New Auto Loans: Loan rate applicable to new vehicles only. New vehicles are where you are the original owner and the untitled vehicle is a current (2020) or prior model year (2019). Up to 110% financing is available. Vehicle weight restrictions apply.

Which would not be the case one the 2021 F150 was titled to you, by Ford, with Ford as the lienholder.

Some of the credit unions have a “new-ish car refinance rate” that is not as low as new, not as high as used, and has some flexibility. Navy Federal, for example, has a “new car refinance” that is a different product:

You need to check the terms of whomever you plan to refinance with, which are almost always right on the website.

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My credit union bases their rates off only the model year of the car, so any 2019/2020/2021 model year car will get the same rate regardless of whether the car is purchased new or used or if it’s a refinance.

Every bank is different, you just have to check with whatever bank you plan on using.

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DCU has the same rate for both new and used cars. Rates are pretty good from what I’ve seen.

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