Hyundai Financing Questions - Is it worth financing just for the rebate?

Hi, I’m planning to finance a 2025 Hyundai Santa Fe Hybrid SEL. I have the cash to pay for it outright, but the finance office suggested taking out a loan to get a $1,000 rebate. They explained that if I pay off the loan within two weeks, I won’t face any penalties. The only cost would be two weeks’ worth of 7% interest. There are no origination fees, early repayment penalties, or hidden costs.

I’m wondering how the loan officer and the bank make money from this and if this is common. Has anyone else financed a Hyundai loan and paid it off quickly to take advantage of the rebate? Was it worth it? Any advice would be greatly appreciated. Thank you!

Someone posted about this earlier today. Scroll down and you’ll find it.

Sawyer said:
Someone posted about this earlier today. Scroll down and you’ll find it.

I tried looking but couldn’t find the post. Do you have a link?

The bank and dealership make money by betting that most people won’t pay off the loan quickly. Those who keep the loan longer offset the rebates given to people like you who pay it off early. It’s similar to cashback credit cards—banks offer rewards because many people carry balances and pay interest.

Pro tip: Instead of using the loan payoff option, make an extra payment for the total balance to avoid additional interest charges. The linked post has some good insights on this.

I bought a 2023 Santa Fe a year ago and was in a similar situation. Hyundai Motor Finance (HMF) offered a $3,500 rebate for financing. I financed the minimum amount ($7,500) and paid the rest in cash/credit.

The dealership didn’t tell me I could pay it off immediately, but I went to the HMF website and calculated the payoff amount as soon as I got the first bill. The site calculates interest assuming the payment will take a few days to process. I used ACH transfer from my bank, and they received the funds the next day. Two weeks later, I got a refund check for the extra interest I overpaid.

It was simple and worth it for the rebate!