I've searched around and noticed a lot of folks had a rather easy time refinancing their cars...but for me it's been a bumpy road (even with perfect credit).

Here's my situation: Back in 2006 I bought my brand new IX from a dealership in CT. At the time financing it right through them seemed like the way to go, and since then I've been sending my payments to Citizen's Bank. After a move up to VT I've decided life would be a lot easier with a lower interest rate, but after calling Citizen's I was told they don't handle refinancing and that I would need to contact the dealership. Forgive my ignorance, but if I'm sending checks to Citizen's shouldn't I deal with them for the refinancing?

I've heard so many conflicting stories about this. A friend of a friend that worked at a VW dealership said the dealer has absolutely nothing to do with the loan and that I need to work with the bank. The bank tells me I need to talk to the dealer.

Having tried banks and credit unions with little luck this seems like my last option for a lower interest rate. Doesn't the dealer have their money already? And if they're making a profit off my interest rate, what chance in hell do I have of lowering it?

Ah live and learn...

 

I too plan on refinancing my loan soon. I talked to my bank (a credit union) and Capitol One (neither are the lender for my current loan); one said they would refinance the car up to it's value and the other said they would refinance up to $30k. I didn't fill out any applications to see what rate I would get, though. If you have already tried refinancing with other banks and they turned you down, I would keep trying other banks.

In your case, I don't know what the deal is with Citizens. Maybe they just don't refinance auto loans, but I doubt the dealership will be able to help you.

 

would it be possible to put about 25% of the principal into my loan.... and then refinance the remainder for a lower monthly bill?


Eddie Rosasdo

 

dealers will not refinance cars. You will have to check with banks and credit unions. The dealer will not help you.

 

That's what I was told, and yet Citizen's Bank won't have anything to do with it either...so I guess I'm screwed in that department.

Sadly it's looking more and more like I might have to say goodbye to my Evo...and hello to something new, whatever that might be.

 

the best rates are sometimes better with the credit union, but you have to shop around with banks to refi

 

whats the interest on most banks? Mine is at 6% right through mitsubishi and tried USAA and they also had 6%.

 

sounds like you're gettiing the run around from the bank. i am not a finance expert or business expect but i've read somewhere that the dealership unload the loan to another owner (ie the bank) after everything is processed. so the dealership wouldn't have any interest in improving your financial situation. they sold the car and that is water under the bridge.

try other banks.

 

yes try other banks. my loan is at 5.25% i just got it recently too. maybe the economy had something to do with it. it is also through my credit union.

Eddie Rosado

 

I used to be in the Retail car sales business for 2 1/2 years, your friend's friend is absolutely correct ! the dealer have NOTHING to do with the financing. Here is what I recomend you to do... if your Evo is under your name only or co-signed even, go and become a member of a local credit union in your area. Then talk to them about refinancing your car. They should be able to help you out from there! good luck and let us know what they tell you and if everything worked out ok ...

 

OK, well I'm glad to have that cleared up, thank you. The last credit union I went to said my debt/income ratio was too high and I would need to make more in order to get a lower rate...but even then it wouldn't be much. I guess I'll just keep looking for the time being.

 

take whichever loan or credit card or financed item that has the lowest balance and focus on paying it off... then move on to the second lowest balance... once you clear the second one go apply for other refinances.. i dont know about your state but in ct and i'm guessing this might be at a federal level every time you apply for a loan it lowers your credit score. but thats the best way to make ur debt/income ratio work out for you a little better.


Eddie Rosado

 

^^^^ or you could get a co-signer with decent credit and then re-apply at the credit union again.

 

All above are correct about the dealership not having to do anything with the financing of your car. They might have a finance department on site but they go through financial institutions for your loan. Your best bet is to search around either online or through local financial institutions for a better refinance rate. As far as our debt to income ratio unless you have a large influx of cash coming your way there really is nothing you can do about it in the near future. Just continue to pay your debtors on time and before you know it you'll have a better debt to income ratio.