Refinancing auto loan

I have an auto loan with Capital One. I'm in better financial shape than I was when I first got the loan 1.5 yrs ago, so I called to inquire about lowering the interest rate.

I've been told that Capital One cannot refinance their own loans. So, if i want a lower rate, I have to go through another company (?) I thought the point was to "threaten" to go to another company unless they lowered my rate.

I asked if there was a legal reason for this, the associate said "I have no idea"

Have you heard of this before?

Any recommendations on a company to refinance with?

Re: Refinancing auto loan

you can get interest lowered on your credit cards, but I never heard of a company lowering their interest on a car loan.

I would checkj out various bank sites and see if you can find a better rate.

eta: since your car is not new anymore, the interest rates I think would be higher if you take out a loan with someone else. but I am not 100% sure.

what I would do if I were in your position is pay more than your monthly payment each month.

Message edited 11/29/2007 1:20:15 PM.

Re: Refinancing auto loan

Not sure if you belong to one, but I would check with the credit unions too - my MIL was able to get a better rate through one.

Re: Refinancing auto loan

if you are in better financial shape your interest rate could be lower now. It's worth it to shop around.

How much do you have left to pay? can you afford to do a 0% card or a low % card for the remainder of the loan?

I know a few people who actually bought their cars on a 0% card and paid it off.

Re: Refinancing auto loan

I had never heard of refinancing a car loan until my cousin told me at Thanksgiving that he refinanced his car loan. I asked my mortgage broker this week (out of curiousity since we have no car loans) and she said lots of people are doing refi's on car loans now.

My cousin got a 4.9% rate with his credit union.