How do you refinance a new car?

Question

I got a brand new car, I've been making double payments on it, always on time. I just want to cut down the interest.

My current rate is 7.8%

Answer 1

You won't find a better deal than you have now.

There are only a few reasons why you would refinance a car.

1. You can refinance at a lower interest rate (you don't pay as much for interest).
2. You refinance for a longer term (that lowers your monthly payments).

With your current interest rate, even with excellent and substantial credit, it will be hard to beat. Capital One Auto Finance offers 7.45% refinancing to it's best customers for 30 - 36 mos.

http://www.capitalone.com/autoloans/refinance/

If you had a higher interest rate, you would simply contact a finance company and put in an application. If approved, they would pay off your current loan and you would repay the new finance company.

Here's a great article about buying and financing cars.

http://development1.blogspot.com/2007/01/buying-your-new-car.html

Answer 2

You probably won't find much lower but I would check for a credit union in your area. They offer lower rates then anywhere else. I just refinanced with one in my area and my payment went down $150 a month! Credit Unions are more lenient with credit scores as well. If you're credit is good, like it sounds then you might possibly get a refinanced loan at like 6 - 6.5%.

Answer 3

WHEN YOU REFINANCE A VEHICLE IT IS CONSIDER USED. EVEN IF YOU ONLY HAD I ONE DAY. SO NOW I WOULD MAKE SOME PHONE CALLS TO BANKS IN YOUR AREA. ASK WHAT INTEREST RATE THEY ARE CHARGING. IF IT IS LOWER. OF COURSE IT WILL BE TO YOU BENEFIT. YOU MAY WANT TO CHECK RATES ONLINE AS WELL. DON'T BE SURPRISED IF THE RATES ARE CLOSE TO WHAT YOU HAVE NOW.