orng302

Anybody here have any recent experience refinancing a car loan? If so, what rate did you get? I am looking to lower my rate which is too high for the times, imo.

Glenn

you will have to get a used car loan which are usally higher than new car rates.
check capital one bank

black_bullitt

Since I bought my car off the showroom floor as kind of an impulse buy (while my bank's loans dept was closed for the evening), I went with what the dealer offered. Since I'm going overseas soon, I thought it best to refinance and get that loan back in the hands of the bank I use most, they were able to give me a rate that was 0.2% lower than the original loan. I'll keep making my original payment amounts, but it will save me a few bucks in the long run, and the convenience factor is high not having to deal with an additional financial institution.

cdynaco

Quote:

Originally Posted by Glenn

you will have to get a used car loan which are usally higher than new car rates.

Not necessarily... Here the Credit Unions allow new rates on cars 2-3 yrs old. Local is advertising 1.9% if you're a new loan customer - new, used, refi.


And Capital One are freakin liars! Reneged on their 3.9% fixed credit card during the crunch - whereas Chase (x3), Citi, Advanta honored their deal - and still are! Even wrote Cap One's CEO and no go - regardless of me being a perfect payer/high score and their promise in writing. Cap One can kiss my asz goodbye forever!

sampey43

! I will never finance another vehicle thru captail one ever again!!! If i can help it i will go thru ford motor credit for now on!

askjeffro

Check out penfed.org. Anyone can join with a $15 donation. If you are military you can join free. 1.99% refinance.

https://www.penfed.org/Auto-Loans-Ov...ns-home-mainAd

orng302

So far Chase has offered me a rate that is 1.4% less than I am paying now, but I still feel there is better out there. That 1.9% with the C/U is great but what do you need to qualify for that?

badasbullitt

My dealer used Chase and refinanced through Suntrust and got another 1% less.

Glenn

I wonder if you went back to the stealership and told them what you wanted to do if they would help you?? That is the last thing I thought I would ever say but just about every new car I ever bought the dealership matched or beat the best rate I could find on my own.
Cap one has never screwed me over and that is why I suggested them. Peace

12C/OBoss

i used b of a and had 2.74 for 72 on my Boss in March of last year ...now my 98 is financed at 2.90 for 36 through PA state employees credit union. I couldnt believe i got 2.9 on a 14 year old car!! Its all in the loan to value and above all your credit. I paid off over 6 figures worth of car loans in the past 3 years through them so they are really easy to deal with. Oh and credit unions usually use KBB retail for a loan value so as long as you have money down their rates are awesome!

12C/OBoss

we as dealerships only have the ability to orginate loans on vehicles and not refinance as we are not the actual bank. Once financed you can go to ANY bank and if you have enough equity in the transaction refinance through those banks directly

orng302

So far my best offer is through US Bank at 2.0% apr. for 60 mos. They do not offer 48mos. term. At least that is what I was told. Thanks for the responses.

JeffIsHereToo

I did it for my last car through my credit union. You need to consider the interest rate and the length of the loan. While your interest rate my be high depending upon where you are in the loan it may not make sense to refi.

So say you have 2 years left at 6% for total interest payments of $3500. JUST MAKING UP NUMBERS! Then you switch to a 1.5% loan for 4 years. Yes your payments are lower but the total interest for the four years is $5000. So by extending the loan you have a higher cost of money. It's often a great idea to refi BUT you need to think it through. Good luck!

GT_350

I refinanced mine and got 1.79% from Navy Federal and if my memory is right they will refi it as "new" car up to one year after you put it one the road.

12C/OBoss

who cares about the term? if you can afford the 48 mo payments, then pay the 60 mo payment and send a second principle only payment that would make up the total difference at 48... you win!

its not rocket science just google amortization table and its easy to figure out

edit link below
http://www.bankrate.com/calculators/...alculator.aspx

bluesun

A car note is not like a mortgage. If you send in two payments in the first month, they will consider that you paid either the first two payments, or the first and the last payment. Basically, you will not receive any interest reduction on the note even though in theory you reduced your balance. Every bank is different, but sending in extra money is just giving the bank an interest free loan.

askjeffro

I've had car loans setup where you could advance pay principal reducing interest amount. So, to your point, make sure you know what you are getting.

TMSBOSS

confirmed. Just got off the phone with Pen Fed and they will refin auto loans at 1.99 up to 5 years.

Something to think about

orng302

I am going with them as well. Saving a good amount on my present loan.

cdynaco

You know I understand that, and normally that makes sense. But with 2 or 3% loans, the calculator would say that paying off that cheap of money early is unwise. Especially with the current and future inflation.