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Refinancing an Auto Loan...
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CaidensMommy
My 3 Miracles!
Member since 5/05 5777 total posts
Name:
Melissa
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Refinancing an Auto Loan...
Can anyone tell me how it works? I am clueless. We were thinking about refinancing my car loan after the New Year. I originally took out a 6 year loan and in March I'll have 3 years left. It's a 2002 and right now I have a horrible rate of 8.75%. My credit wasn't the greatest at the time of purchase.
If I got a APR of a couple percents lower, would that make enough difference in my monthly payment to make it worth it?
Where would I refinance the loan?
Thanks!
Message edited 10/17/2005 4:33:40 PM.
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Posted 10/17/05 4:33 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
btrflygrl
me and baby #3!
Member since 5/05 12013 total posts
Name:
Shana
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Re: Refinancing an Auto Loan...
depends on the interest rate. We got our new car at some outrageous rate (like 18%) and refinanced 3 months later through our credit union for I think 8 or 10%. Our payments went from $550 to $443, not huge, but it did help!
You just go to your bank and tell them you'd like to refinance a car loan...basically, you are taking a new loan, the old one gets paid off with the new one and you start paying the new one
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| Posted 10/17/05 6:00 PM |
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-Laurie-
Hi!
Member since 5/05 2536 total posts
Name:
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Re: Refinancing an Auto Loan...
You may not do so well since its a 2002. But just call around and ask what there rates are for 36 months on a 02.
If you have been making payments at that rate easily then if and when you refi you could keep them at the same amount and own your car alot quicker. We did that with my husbands truck but we refi'd about 5 months after the orginal loan.
Good Luck!
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| Posted 10/17/05 6:06 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Refinancing an Auto Loan...
Posted by CaidensMommy
Can anyone tell me how it works? I am clueless. We were thinking about refinancing my car loan after the New Year. I originally took out a 6 year loan and in March I'll have 3 years left. It's a 2002 and right now I have a horrible rate of 8.75%. My credit wasn't the greatest at the time of purchase.
If I got a APR of a couple percents lower, would that make enough difference in my monthly payment to make it worth it?
Where would I refinance the loan?
Thanks!
This may not be worth it. If you already paid three years of payments... you already paid a major portion of the interest already. The payments you have left will have a lot more pricipal than interest.
If you re-fi now... even if you get in at a lower rate... you may be paying more interest in the end.
Refis on a car loan are usually only good if you re-fi within the first year or two tops of making the payments.
There are refi calculators out there that can help you with this.
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| Posted 10/17/05 7:19 PM |
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