How long should you want until you try to refinance an auto loan?

Question

My wife had no credit when I got the loan, but she has credit now and I want to add her to the loan, but to do so I will have to refinance. This could hurt my score? But could help my intrest rate. (Currently 13%) May credit has also gotten better since the loan. It's been 7 months now, I heard I should wait until a year.

Answer 1

This is part of an article on different ways to defray costs and this is the part that talks about auto refinancing. Depending on your credit scores and how much you "rolled" into the new car loan (if you did it without financing anything in, great!), it may not be a great idea to refi your car because the money you save in interest, gets spread out because I don't think the refi calculates for the remainder of the term....i.e., I believe you are starting over with another 4, 5, or 6 year note.

"Auto-loan rates vary hugely depending on your credit score and the length of the loan. Someone with a score of 740 or over can land a three- to four-year loan with a rate as low as 4%, Larsen said, with rates marching steeply higher from there.

On average, people with a 720 score or above are paying 5% for a 60-month loan, a rate that rises to 5.7% for people with scores between 690 to 719, said Bob Kurilko, vice president of marketing for Edmunds.com, which tracks vehicle finance trends. Slip down to 675, and the rate spikes to 7.5%; below 640, and you’re in the double digits.

Unfortunately, many buyers focus only on the monthly cost, so car dealers stretch out the loan -- jacking up the rate in the process -- to give them the lower payments they want, Kurilko said.

“The term is too long and the rate is too high,” Kurilko said, “but it’s invisible to (car buyers) because they haven’t worked out the numbers.”

Those who notice they’re paying a much higher rate than they should based on their credit scores can try to refinance, but they’ll get decent rates only if they have some equity in the car. Unfortunately, many buyers drive into the dealership still owing money on their last vehicle. “Some people are $10,000 to $12,000 upside-down,” Kurilko said. “That’s insane.”

If you can’t refinance, Kurilko recommends “driving out of the loan,” keeping your current car at least until it’s paid off, rather than compounding your error by trading it on a new one.

If you have some equity and want to look for a better loan, you can find rates, information and lenders at Bankrate, E-Loan and Cars.com, among others."

Hope that helped a bit :)

Answer 2

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Answer 3

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RE :How long should you want until you try to refinance an auto loan?
My wife had no credit when I got the loan, but she has credit now and I want to add her to the loan, but to do so I will have to refinance. This could hurt my score? But could help my intrest rate. (Currently 13%) May credit has also gotten better since the loan. It's been 7 months now, I heard I should wait until a year.
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Answer 4

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Answer 5

We don't know what the interest rates will be in a year from now, If you could put some money with that re-finance that would be a big plus in your favor. Just keep in mind that you don't want to end up-side down meaning down the road that you owe more than its worth good luck.

Answer 6

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Answer 7

Now you have seven months of credit on your loan so know would be a good time.

Answer 8

Ya at least wait a year or till the car's halfway paid off.

Answer 9

it really wont hurt to test the water with one or two places;

Answer 10

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