I got my car 3 years ago and still have about 3 more years to go to pay it off. When i first got it my credit was okay, not great though and since then I think it has gotten a lot better. Is it a good idea to try and refinance through my bank or something?
2006-11-15 15:49:22 · 5 answers · asked by ELIZABETH M 1 in Business & Finance ➔ Credit
it would not adversly effect your credit to refinance your car loan. short term, you may lose a point or two, but that will recover within a month or two. don't let that stop you from making a wise financial decision.
call your bank, credit union or even the company your car loan is with now. get some quotes on rates you qualify for - ask for a 3 year term. then do some math. what you want to do is figure out if it will be beneficial to refinance. you can do the calculations on this site: www.bankrate.com. click the calculator button at the top, and then click on the credit card link "the true cost of paying the minimum" (its the easiest one to use). plug in the loan amount, rate, monthly payment they quote you, check "fixed payment" and click calculate. do that for the loan you have now, and compare to the loan you could get.
you may find refinancing that car loan could save you a lot. on a $10,000 loan, reducing an interest rate from 10% to 5% will save over $800 in those 3 years. And cutting a $13,000 loan from 15% to 10% will save over $1,100 in those 3 years. On the other hand, if refinancing only saves you $300 in 3 years, it may not be worth your time.
Do what works out to your advantage.
2006-11-15 16:27:06 · answer #1 · answered by abcdgoodall 4 · 0⤊ 0⤋
shopp around for good rates to do so . but i would advise to just go and do the 3 years and be done with it . it will deprechiate and won't be nothing worth if you still would have to pay 5 more years on it . Then you need a new one
2006-11-15 15:52:46 · answer #2 · answered by silverearth1 7 · 0⤊ 0⤋
yeah, not only is your payment going down but you might be able to pay it off earlier. i have refinance 2 of my cars, my credit is perfect. good luck!!!
2006-11-15 15:53:05 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Just as long s you meet the monthly payments, you'll be good.
b
2006-11-15 15:54:30 · answer #4 · answered by FERBSTER 4 · 0⤊ 0⤋
Thankyou for all the answers.
2016-08-23 10:45:22 · answer #5 · answered by Anonymous · 0⤊ 0⤋