When refinancing a car loan?

Question

We are thinking of refinancing our car loan but when I called the loan officer, he looked up our car's current value at $14,500 approximately, but we owe about $17,000. The loan officer said in order to refinance we would have to pay the difference of $2,500. Is this standard? When I was telling my Mom she acted as though she never heard of that.

Answer 1

With the amount of info you provided I dont know the model year or your current term but i assume your reason is to obtain a longer term to lower the payments...if thats the case a phone call to a lender will always be the easy way out, quick brush off, your car book at ??? sorry

Go see the lender, put your cards on the table , you need an extension or it could be repo time, if lending officer says sorry, dont give up demand the supervisor...I dont even know if I am on the right track answering this question ...lol

Answer 2

1

Answer 3

Pretty much. If your car is valued at less than what the loan is. Cars depreciate rather quickly. Call the bank and get a pay off figure. It sould be less than what your payments add up to. Did the loan officer give you a pay off amount as of that day?? If that is what he said, then you have to pay the difference to get a loan from that place. Try another bank to see if you can get a lower interest rage of something different from them.

Answer 4

Standard. The lender will only finance the value of the vehicle, which is why most people can not re-finance a car, which is a depreciating asset.

Answer 5

do u own a house 2nd mortgage
lower interest %5 to %8 and u own the car then u can lower insurance to liability in stead of full tell them doing repairs to home need 20k little spending cash$$$

Answer 6

If you need real financial advise log on to Dave Ramsey.com you'll be debt free in no time. good luck.

Answer 7

that's why refinancing isn't for everyone. He's right.