advice on refinancing an auto loan ???

[street heat]

i was checking my credit on credit karma and it said i may be overpaying on my auto loan.

i financed for 5 years, and ive got about 2 years to go. i had to get a VERY HIGH interest rate since it was my first car, and i had a bunch of student loan debt i hadnt started to pay yet.

would it be a good idea to refinance ? if i did how would it work ? would it just be for the 2 years i have left ? or would they try to lower interest rate some but stretch the payments for more years ?

someone school me please

 

[HookersandIceCream]

If your score has gotten better and you have rate with 2 years left then yes it makes a lot of sense.

You can do all this online. Get quotes I mean.
Essentially the new companies buys your loan because they will make money off the interest the previous company was making.

What will important is even if you stretch to a longer loan would the final amount be less

 

[ajkamkel]

If you are a member of a credit union go there for the best rates

 

[street heat]

i definitely do not want to stretch it longer. is it possible to keep the 2 years and just have a lower interest rate ?

 

[HookersandIceCream]

i definitely do not want to stretch it longer. is it possible to keep the 2 years and just have a lower interest rate ?

Well how much do you owe and what is your interest rate?

 

[street heat]

Well how much do you owe and what is your interest rate?

i think around 9500. interest is over 20%

 

[Mr210]

i think around 9500. interest is over 20%

Over 20% damn dude

 

[Bunchy Carter]

i think around 9500. interest is over 20%

You need to refinance; they ripped you off with the 20% interest rate. Car dealerships can give you any rate; if you accept it.
What kind of car do you have? When I got my first car out of college; they tried to give my 10% and I said no and walked out and they called and gave me the 4.99% I wanted.
Any auto loan that above 6%; you should refinance

Check out bankrate.com to compare difference refinance companies and also check out your local credit union

 

[sayyestothis]

Even at 20% ur not paying alot of interest in each installment if you only got 2 yrs left on a 5 year note.

I would check ur amortization schedule and see then go from there.

 

[Rich Spirit]

I refinanced through a credit union a couple years ago and it was the best decision i made. Planning to pay off the car sometime next year

 

[HookersandIceCream]

Even at 20% ur not paying alot of interest in each installment if you only got 2 yrs left on a 5 year note.

I would check ur amortization schedule and see then go from there.

Even at 2 years I doubt he would pay the same amount with a lower rate. Huge difference of even 10K at 20% and 10K at 5%. With the refinance fee it will still be a good amount less.

 

[unit321]

Credit karma? Never heard of them.
Talk to your credit union about refinancing an auto loan.
You can adjust the terms of the loan so that you can set your new loan to be 24 months. This way, you aren't stretching the loan longer. Much like people who refinance a home loan, it is worth it if in the long run, you save money, because there are some costs of opening a new loan.

 

[mcdivit85]

i think around 9500. interest is over 20%

Over 20% on a car loan? I've NEVER heard of that. Those are loan shark terms. Almost sounds like some "buy here, pay here" sh#t.

On a car loan, I think anything over 4-5% is high and even that is high in my opinion. Of course, this depends on your credit history and credit score.

To avoid getting ripped off, I suggest getting your own financing before even stepping onto the car dealership lot. That way you know the general area that you should be paying. Plus, the dealership will generally try to beat that rate by going to their list of loan providers. So, you may end up with an even lower rate.

On my most recent car purchase, I secured financing at 3% before going for a test drive and walked out the dealership with 2.5% due to the dealership securing a better rate to close the deal.

But bro, you definitely need to refinance if possible. You're paying high interest credit card numbers on a car.

Peace

 

[feelosofer]

Yea, you got taken advantage of on your first car. I've never heard of 20 percent interest on a car. In NJ there is a cap limit to the points you can charge on an auto loan (no more than 2 points above the buy rate). But yes in your case refinancing makes a lot of sense.

 

[GollyImGully]

20% breh?

Them nikkas saw you and had the