Need to upgrade Jeep. Can I refinance my loan to include those upgrades?

Question

Hello.

I have a few questions about re-financing an auto loan. I have a Jeep Wrangler that I want to upgrade (suspension and tires etc.). Now, I have a loan with Chrysler which I owe about $15,000 currently.

Would I be able to re-finance my loan for, say, $18,000 (with another bank, loaner, or even Chrysler) to cover the charges of those upgrades? And just have my monthly payment go up? Or would I be better off just taking out a small personal loan? Or just saving the cash (the hardest and longest)?

I have good credit and I always pay my bills on time. Would this bad for my credit?

What would you do?

Any suggestions or opinions would be excellent.

Thank you in advance.

Answer 1

Generally, no. When you go into a bank or any other lending institution, they will pay Chrysler the $15k you owe, then you'll have a $15k loan with them. They won't loan more than that, because if you total your Jeep, the insurance company will pay off what it's worth and no more. You could end up with more $$ in your pocket every month if (1) you refinance at a lower interest rate (YAY!), or (2) you extend the lifetime of the loan (BOO!).

Your best advice from a financial perspective is to cut back on other things and save up your bucks for the upgrades you want, then pay for them outright. It stinks because I know, you want the upgrades ASAP, but in the long run you end up saving a fortune on interest charges, and think of all the more upgrades you can afford with the money you didn't spend on interest.

The thing that makes it easier is, you already have the Jeep, so you can have a LOT of fun with it as it is, and it gives you time to really decide what mods are best for you and what you want out of your Jeep.

I hope that's helpful, even if it's not exactly what you want to hear.

Answer 2

Jeep man has the answer that probably fits you.
I don't go into debt to buy something I will just thrash on the trails. Some people need a cool 4x4 to cruse Sonic, I use my rig to rockcrawl and ride the trails. Oh yea, I drive it to work and park it with the shiny trucks that never see the dirt.
As for me and my club, we buy rigs we can afford, usually pay cash, and build it ourselves with help from friends. Some of us use credit cards or store credit for wheels , tires etc. Personally , I tend to buy used tires from my friends who are always buying bigger tires before the old ones wear out. I am rolling on 33"x 12.5 mud tires and I paid a whopping $150.00 for the set.. I have been having a blast with my '86 Bronco for 5 years and have not spent over $2,000.00 including purchase price, 8 tires , home built slider rails,used brush guard, etc. I buy and trade for parts and have lots of spares including two doors and a good used transmission and transfer case. Yes, it looks rough but I don't cry when I get a rock dent or a scratch. I don't worry about what I owe (nothing) or what it would sell for (at least what I have invested, based on its reputation on the local trail runs) And yes, I do have a new girl friend and she is happy to ride the trails with me in it. Chrome won't get you home and chicks dig trail damage!
I am not knocking you for wanting a cool Jeep, it will be a great rig if you do everything you are thinking about. I might even consider buying it for my girlfriend in a few years after you spend lots of money on it, but beware, I will only give you a fraction of your investment so enjoy the big tires , wheels and lift kit while you are paying for them!
Have fun, it's only money, and money just takes time , muscle,skill, and brains to earn. Ask yourself first.....will the 2010 YOU want to pay for the fun the 2007 YOU is having? Just how many years are you willing to pay for the cool jeep you will drive this summer?

Answer 3

the problem lies therein - that you lose 10% of value when you drive off the lot - and it goes down from there

even with the upgrades -

only something like a Ferrrari can get away with it

heard a story of a guy who took a particularly HOT model
that was 4 years old and traded it in on the same model
new - - - - - - - the dealer wrote him a check for $20,000 +
and gave him the new car

because the 4 year old car had appreciated in value !

but that is 1 in a 1,000 models

Answer 4

i became into snoozing whilst the alleged "improve" (and that i take advantage of the term laughingly) became into made. I stay in a timezone purely one hour in the past the corporate workplaces of Yahoo's timezone, i'm Mountain and that they are Pacific, so even though they do in the ineffective of night is at a million a.m. my timezone. This morning, as quickly as I logged in, i became into waiting to respond to basically a pair of questions then stored getting the "Sorry, we are taking a breather" message for notably much 2 hours today. the U. S. universal chief Board isn't showing something. human beings have been posting that the united kingdom universal chief Board isn't working the two. some maintenance! they provide the impact of being to have screwed up issues worse than they have been in the past!! it is befell in the past, they upload some new function and it reasons problems with an previous function. The spell checker hasn't been working precise in months. All i will assert is "Welcome to YaHELL!"

Answer 5

You can definitely do it, just shop around. I filled out an ap. with Harbor Finance they really help you get a good lender

http://tinyurl.com/2tbnxr

Good luck!

PS
In alot of cases, if you find that a good lender, you'll be in a better position with the refinance!

Answer 6

I would talk with a loan officer at the bank or at the auto company

Answer 7

It takes 6 seconds for the YAnswers page to load for me to be able to click on the [add your answer] box. is my laptop slow?