Vehicle loan interest rate extremely high.....?

Question

Here's my situation: Right now I have a remaining vehicle loan for $6500.00 at 19% for 2 more years. My credit score is around 678. It was quite a bit lower at the origination of this loan 2 years ago and that's why the interest rate is so high; but I feel like I'm being screwed at this percentage rate now that my credit is average and not terrible. A month ago, I tried to refinance it at the same place but they only offered me a one percent decrease (I've always paid on time for the last 3 years including a little more than the min. payment too). Would I be able ot find a place to refinance my vehicle at a lower rate? What interest rate do you think I could/should be at and what places would you suggest doing this with?

Answer 1

Absolutely yes you should refinance the loan. The current lender should have nothing to say about it. But first make sure there are no pre-payment penalties on your current loan. If there are not - start shopping ... for a new loan. Look online at bankrates, capitalone, etc for good rates.

I just got a loan through my credit union for an auto at 6.15%. If your credit is in good shape as you say, there should be no trouble cutting your current rate in half. 19% is borderline loansharking in my opinion.

If you can't refinance because of credit or some other reason, and if there are no pre-payment penalties: you absolutely should pay that $19k off as soon as possible. It is acting like a giant parachute preventing you from having a financial future!

Answer 2

1

Answer 3

If you can't refinance at a better rate than 19%, pay off the loan with a credit card. Unless you are completely off base about your credit history, you should be able to cut your rate in half.

Answer 4

in case you get the money out of your economic corporation you're nonetheless financing the motor vehicle, purely now by way of them. however the huge question is why is you interest value so severe? and what's "somewhat severe" is it 20% or is it 8-9% human beings have a concept that each and every motor vehicle can get 0% (no longer asserting you) yet there are people who belive they are able to get 0% on any motor vehicle. indexed right here are some stable innovations. a million in case you're turning out to be to be the money on a house fairness own loan and its below the fee you're paying now. 2. in case you're refinancing against the motor vehicle and the fee is below you're paying now. 3. dont pay your man or woman loan off now, you would be paying off a depriciating asset.(funds from a chit rates or any form of account that earns interest) surely fee greater in the long-term than any interest value. earlier you do any of the above see what your economic corporation is offering and additionally see the term i.e. 36 months verses despite you term is now. and notice in the event that they are able to conquer it. in the event that they beat it by skill of .50 or below its nonetheless no longer worth it. i'm hoping that helped and stable success. I could desire to function this, first you dont want a 720+ credit to refinance a motor vehicle, you'll be between 620 and up and so a strategies as making use of an fairness own loan out of your place, its a reliable concept as long as you financing a minimum of $ten thousand.00 because of the fact then you definately can wright off you interest and acctually pay your self returned the interest(see an accountant for the proper factors on that) and that i wouldnt placed too plenty credit on somebody with little or no journey in the sector of motor vehicle loans. returned stable success.