can you refinace a car loan?
Wed, 05/20/2009 - 02:32
i bought my car back in 07 when the economy wasn't an issue. My friend recently bought a car and put less of a downpayment and is playing not so much more than i expected. I know the interest rates are low and this is the time to buy but will it be possible for me to bring down my payments or shorten my payment due date if i refinance?
Refinance your current auto loan
I lui355. the best way to try to refinance your vehicle is to go thru your current lender. See if they are willing to lower the interest rate and extend your payment a little longer. Understand that no lender wants their assets back, they prefer the money, so you do have a little negotiation power. However, if that does not work and you have not been late on any auto payments, you might want to find a credit union near you and see if they are willing to refinance you loan,now there are few things, 1. the interest rate might be higher because it is now consider a used vehicle. 2. They might charge you a fee, but overall if the monthly payment is lower, ONLY IF YOU ARE SATISFY, then refinance it.
Good Luck.
It doesn't hurt to ask
It's been my experience that it never hurts to ask. If you don't like the answer you get from one lender then go ask another one. The answer you get could depend on your credit score and the value of the car you are wanting to refinance as well as a variety of other factors but it couldn't hurt to ask.
Depending on how your how
Depending on how your how your auto loan is amortized, you might be better off staying with the loan you have. Generally, you pay off all or most of the interest at the beginning of the payment schedule, so refinancing, especially after about a year, means that you’re re-applying new interest to your principle.