Auto Refinancing

[janet715]

Anybody have any info on refinancng a car? I was told I could do it after a year and its been 3. I currently have a loan thru Household Auto Finance. Can I go thru them or someone different? Where do I start? Any help would be much appreciated!

 

[janet715]

bump - bump - bump

 

[HayGan]

You might want to try posting this over at the budget board as well.

I refinanced thru Capital One and got a great rate. You can also go thru your bank or credit union. My sister has not so great credit and refinanced thru roadloans.com .

Hope this helps!

 

[iNTeNSeBLue98]

We financed our current car through Nuvell, a div. of GMAC, when they offered a better rate than HAFC to purchase a new car (repeat customer with not-so-good credit).

9 months in to the loan I saw posts on www.creditboards.com suggesting to try a credit union. I did. My company's been affiliated with one for years, but I hadn't been a member for a few years. I applied and was approved at a rate almost 4 points lower than thru Nuvell. My payment didn't go down, but my term was shortened, as was the amount of interest. When it comes upon a year I plan to refinance again and hopefully lower that monthly payment.

 

[janet715]

Great ideas... I will try my credit union. Thanks!!!!

 

[Ronda93]

In 2004 I took cash back and other incentives from the dealer and financed through GMAC at 8.5%. Made a couple of payments and refinanced through my bank at 4.25%.

How many years are left on the loan? What's your goal with this action?

Credit unions and banks are the quickest routes to refinace. Call around for rates and find the one that will cost you the least.

Good luck.

 

[LisaNJ25]

In 2004 I took cash back and other incentives from the dealer and financed through GMAC at 8.5%. Made a couple of payments and refinanced through my bank at 4.25%.

How many years are left on the loan? What's your goal with this action?

Credit unions and banks are the quickest routes to refinace. Call around for rates and find the one that will cost you the least.

Good luck.

I just refinance mine last month. It was exactly one year. I went with my credit union and went form 18.99% to 10.99%. It knocked $50 off my monthly payment.

 

[disneysteve]

I just refinance mine last month. It was exactly one year. I went with my credit union and went form 18.99% to 10.99%. It knocked $50 off my monthly payment.

You had a car loan at 18.99%!!! How the heck did that happen?

Even 10.99 sounds awfully high. I just checked bankrate.com and the average new car loan is about 6.5%.

 

[RitaZ.]

I just refinance mine last month. It was exactly one year. I went with my credit union and went form 18.99% to 10.99%. It knocked $50 off my monthly payment.

Wow! Those rates are extremely high!!

 

[iNTeNSeBLue98]

You had a car loan at 18.99%!!! How the heck did that happen?

Even 10.99 sounds awfully high. I just checked bankrate.com and the average new car loan is about 6.5%.

I can answer for LisaNJ25, not with her specific answer, but the reason - lower credit scores. I can relate/

 

[janet715]

My rate was 21%. Ok, everybody get up off the floor now. I know its outrageous. I was coming out of a marriage and my credit was shot... and I needed a car! I just looked at my credit report and it is now finally clean. I have 2 years left on the loan and am just trying to get the payment down. I appreciate all your help!

iNTeNSeBLue98, I see you are from berks county... I am from chester county, pa. Small world.

 

[disneysteve]

iNTeNSeBLue98, I see you are from berks county... I am from chester county, pa. Small world.

It is a small world. I live in NJ but raised in Philly and an Albright College grad so lived in Berks County for 4 years.

 

[iNTeNSeBLue98]

My rate was 21%. Ok, everybody get up off the floor now. I know its outrageous. I was coming out of a marriage and my credit was shot... and I needed a car! I just looked at my credit report and it is now finally clean. I have 2 years left on the loan and am just trying to get the payment down. I appreciate all your help!

iNTeNSeBLue98, I see you are from berks county... I am from chester county, pa. Small world.

WOWsers on the 21%! Congrats on the improved credit since. I thought I had the highest interest rate, but I now see I have some competition.

Berks County girl all my life.

 

[LisaNJ25]

You had a car loan at 18.99%!!! How the heck did that happen?

Even 10.99 sounds awfully high. I just checked bankrate.com and the average new car loan is about 6.5%.

I knwo I know... my credit was not great but is has improved over the past year and I am still working on getting even better..

I panicked when I found out I was pregnant with #4 and I needed a van. So I took the first offer.. I should of gone to the credit union than.

We bought it used... I will try and refinance on one more year to get the rate down even lower.

 

[disneysteve]

No matter what your current rate, resolve that after you pay off your loan, you will keep putting that monthly payment amount aside so that when the time comes for the next car, you will be able to pay cash, or close to it with just a small loan. Then it won't matter what your credit score is or what the loan rate is.

 

[chell]

A credit union usually offers the best rate available.

I think it is a shame that because you have bad or not so great credit that you have to pay a higher interest rate. What is their idea? Oh, let's make it more difficult for them to make their payments because they have had trouble in the past.

Sorry. Can you tell I'm in the same boat? My dad and I just went to the credit union yesterday to try to refinance my car. I can reduce my payment by about $60 a month but I'll be paying on it for 5 more years instead of 2 1/2 that I have left. Not worth it to me I don't think.

Again, sorry for my little rant there.

Hope you get a great rate now.

 

[disneysteve]

I can reduce my payment by about $60 a month but I'll be paying on it for 5 more years instead of 2 1/2 that I have left. Not worth it to me I don't think.

There are various online calculators you can use to compare those options. bankrate.com has good ones. That way you can look at the overall cost which ultimately is more important than just how much the payment is.

 

[tinatark]

If you are refinancing, the best way is to refinance for the remaining term, or shorter. Don't take your equity out in cash!

I would check capitalone.com or your local Credit Union.