Can I get money back when I refiniance a car?

Answer 1

Very unlikely. Car loans are risky loans, anyway. If you default on the loan the car is usually not worth what you owe, since they depreciate so quickly. However, if you refinance through your bank or credit union (especially a credit union), you might be able to get a small cash loan at the same time you refinance your car.

Answer 2

The only way you could get moneywould be if your car was worth a lot more than the lien that was curently on it AND you had superior credit AND the bank agreed to lend you an amount equal to, or exceeding, the value of your car. Bottom line - VERY doubtful.

The only way you could take cash away from this car deal would be if you had initially made a significant down payment when you first bought the car - and you sell the car for top dollar - and - you pay off the current loan and have enough profit to buy a used car with some money left over. In this way, you might get cash from the car, but the holder of the lien ALWAYS gets first priority and it is doubtful you'd find a quality used car. You'd do better satisfying your old lien, refinancing your car at a better interest rate, and possibly a longer term (getting you a lower payment) and then making a pitch to your credit union for a loan, pointing out that your monthly expenditures have decreased since you refinanced your car. Good luck!

Answer 3

Yes you can on these obvious conditions: when you refinance your car, your lender will look up the value of the car (most banks or credit unions use NADA or KBB). If your car is worth more than the amount refinanced your lender will be happy to give you the full value of the car and you get the cash out. Remember, for the lender that's more money that you're paying in interests. KBB and NADA have two values, the trade-in value and the retail value, most lenders will only look at the retail value (which is good for you because it's higher) but some lenders (such as my company) look at the retail value only for A+, A, B, and C credit rating. In other words if your credit score is D or E (typically under 610 and under 560 respectively) they use the trade-in value to minimize the risk of high debt.
If this is not clear enough or need more clarifications please let me know, I'll be happy to help :)
PS: this is not uncommon to do, i have approved many clients with cash back on car purchases or refinances.

Answer 4

I don think you can get money back from a refinance car without having to pay it back. When you do it is at a interest rate of a personal loan and based on your credit score it could turn not even worth it. I don't recommended refinancing a car anyway cause the deprecation value is so great. Stick it out, pay for the car, in the long run you will be thankful for it and you will save a lot of money.

Answer 5

Bad idea - this would be the same thing as borrowing money on credit at a fairly high interest rate. the companies that do financing are using the car as collateral on the loan - this is why they can repo it if you don't pay your monthly amount. You don't actually own the car until it is all paid off.

The company cannot loan money when there is no collateral - so you can't borrow more than the value of the car. You need to head to a bank for a small loan there.

Answer 6

All the previous answers that say "no" are assuming that you maxed out the financing in the first place and already owe more than the car is worth. If that's the case, then "no" is the correct answer. This is a common situation, because cars tend to depreciate faster than their loans get paid off, but it's not the only possible situation.

If you've paid down the original loan to the point where the car is worth more than you owe, then certainly it's possible to get cash back on refinancing. I've done it. It will depend on the condition of the car and on the amount of equity you have in it. If you have a car that's realistically worth $10,000 and you only owe $5,000, and if the car is in good shape and not too old, then a bank or a credit union might refinance it for, say, 70% or $7,000. Your original loan would be paid off and you would get $2,000 in cash.

Answer 7

In some cases yes. There must be more equity in the car today than the balance of the existing loan. The lending institution must be willing to increase the finances amount above the current loan. Having these two conditions met and assuming you have reasonably good credit and a steady income you should be able to get cash back refinancing a car.

Answer 8

YES! YES YOU CAN!

Lets say you have a balance of $10,200 with company A. You want to refinance with company B. The process of refinancing takes some time (even if only a few days). Company B has to payoff Company A. Since your balance accrues interest everyday, if a check for $10,200 is sent from Company B, it will not be enough when it gets to Company A. By then your payoff amount will have grown by a few dollars.

Most companies give you a "10-day" payoff. This is the balance you'll owe in 10 days. Lets say it's $10,260. Company B sends a check for $10,260; but it gets there early and your payoff is only $10,230. Since the loan was over-paid by $30 you'll get a check from Company A for $30.

I work for a company that refinances auto loans, and we always ask customers to add a $100 or so dollars to their payoff amount. That way the payoff amount is covered, and we know that the customer will receive the difference by check shortly.

If you estimate high (not too, high or you may not get approved), you will receive the difference back.

You can't work this up to more than a hundred dollars or so, but the answer to your question is yes, you can get money back when refinancing a car.

Answer 9

Your answer is YES, depending on the car and its value. If you owe, say, $5000 on the car and it's worth $10000, you may be able to get a loan for the full value.... or up to 80% of the value ($8000). Again, it's kind of tricky because a lot of cars do depreciate in value. If you have a foreign car (Subaru, Toyota, Nissan, some Hondas), they are the only cars right now keeping their value in the US. All Subarus are keeping their value, Toyota trucks and SUVs (Tacoma, Tundra, and Sequoia) are actually retaining their value the best along with Nissan trucks and SUVs.

From my personal experience, we had a show car valued at $20,000 (a 1991 Honda Civic. No kidding!) that we only owed $6000 on. We had some bills come up and we needed to get squared away. We got a $4000 loan on the equity in the car, bringing our loan amount to $10,000. I have a friend that works for a car dealer, and whenever he buys a new car for himself (at the auctions usually cause he can get them cheap), and get the loan for the full KBB value so he's got some extra money tucked away.

Anyhow, your answer is yes. But, be sure that the car is 1. worth what you are trying to refinance it for and 2. your car is going to hold its value. Otherwise, the loan officer may just laugh at you.

Good luck! :)

Answer 10

Not likely. Rarely is a car worth more than you owe on it. The problem with refinancing a car is, if it's not worth what you owe on it then you have to produce the cash to make up the difference. Normally not a good idea. Look at all the numbers before jumping into this. Will re-fi really cut your cost? Will you actually save money? Could the cash you have to pay be better off applied to the existing loan? Think about stuff like this.

Answer 11

All these peoples answers are wrong so far. Lets say you own a new mercedez 500 sel. It is paid for. If you get a loan on it you can almost get 20k. That money is yours. Now is it a home? No. Does the car get 20k down the road no. But you can get money back out of any vehicle that you have paid into it as long as it doesn't exceed the blue book value. Something most borrowers on here must not have.