Does anyone know if it is possible to refinance a car loan? My interest rate is a little high, I think I have to wait a couple years tho. Any input would be appreciated

 

i had the oppertunity to refiance my srt-4 from 12% (ouch) to 7.9% i turned it down tho. cause i'm gonna get a evo hopefully

 

Yes, you can. Checkout credit unions...they usually try give you a lower rate than banks.

 

I was at 11.9% on my very first car, many years ago. I refinanced and got 7.25%, which saved me a little on the monthly payment. A few weeks later I got the Evo and my credit scores had improved thanks to paying off the 11.9% loan, and I got 5.25%.

If you have no prepayment penalty (this is a penalty sometimes charged for paying off a loan early), see about refinancing. You can sometimes go with the same loan company, or you can choose a different one.

The process goes like this. Choose a loan company. Find out how much you have left to pay on your car. The loan company will offer you a rate and tell you what your new monthly payment would be. You can choose to adjust the number of payments remaining (the loan term) to bring down your monthly payment if you want. If you accept the new loan, they send a cheque off to your old loan company to pay it off and you just pay the new monthly rate to the new loan company. Simple.

 

Ask your bank, not a bunch of Evo owners.

Refinancing a loan like this only works if:

1) The rate drop is SIGNIFICANT
2) You haven't gone very far into the current loan - the interest is frontloaded, which means you the highest percentage of the interest early in the loan, so if you wait until 2-3 years, you will have already paid 80-90% of the interest and refinancing would just start it all over again
3) The new loan is ONLY for the amount of time remaining in the current loan - do not refinance for the original amount of time all over again

 

MMC gave me 12.5% when I bought my '03 EVO, and I refinanced after I sold my other car, 6 months later, for 5.5%.

The best way to find out if you can refinance or not is to call up your bank. Hopefully you put a good size down payment on your car. That will make it A LOT easier to refinance. Best of luck!

 

wait 6 months and then go get the better interest rate

 

yeah what he said, otherwise the lengthened term just goes into paying more interest so u either break even or pay more, so unless u refinance for the same term left on the same amount for a lot lower rate its not worth it.

i refinanced my loan after a month at my moms credit union for 4% payments dropped over 100 a month