Just make double payments when possible.

 

I also vote to double payments, and pay that sucker off. ;d

 

I've never had to pay a fee to refinance. If you can get 1% by opening an account then go for it. I always take a dealer loan when I buy a car (to keep the schmuck at the dealership happy) and then refinance at my credit union a month later.

Whether double payments or a new loan makes sense has a few factors--what interest rate you can get and how disciplined you are. I personally don't have the discipline to make double payments...there's always some shiny part that I could add to the car. lol.

 

Double payments, if you refinance remember you will be paying interest for the first year of it. Also the rate you will get might actually be higher considering it is not a new car loan. I doubled up on my payments and knocked off a year, if you can afford to do it go for it you will be happy once you get that title.

 

Anytime you can do away with a bill, it's better to free up the monies. Why refinance just to have a lower payment for an extended period of time? Just sacrifice while you can, free up the money, and put the freed up funds towards something else.

 

Pay it off, car payments are for losers

 

Aye I will be paying it off .

The reasoning behind the refinance si to get a lower payment overall so more money will go towards my principal.....or do I have that backwards?

Either way I'm not refinancing, I'm just going to dump the money into the payments so I can own her sooner

 

You do need to pay a refinance fee.. But you will need to pay the DMV for change the lien on the title.

 

It's hard to tell if a refinance makes sense without knowing the interest rate of the refi, and your payoff goal date. You should check out some of the online payoff calculators. They will give you a good idea of the total cost out of pocket with different scenarios. Just Google "loan calculator."

Also, you have to consider if you have any other debts that have a higher interest rate than your car loan. Any extra money should go towards your debt with the highest interest rate. So, rather than making double payments on the car, you would take that money and apply to your higher interest rate debt (credit card, loans, etc).

Good luck

 

Good choice

 

I am not doubting you but it is very hard to find a bank willing to refinance a loan on a car for a lower rate then you probably already have. I'll give you a scenario:

A: I buy a brand new car, the car company is offering a steller deal of 0% interest. My principal is 30,000. My loan is for 72 months. My payment is: $416.67

Three years later I want to refinance and lower my payment. My balance is $15,000.12. My credit union is offering a refi rate of 5.9% for 60 months. My payment is now: $289.30

I have successfully lowered my payment but if I pay out the loan normally I will end up having paid (36 X 416.67) + (60 x $289.30) = $32,358.12 Which is $2,358.12 more then I would've paid had I just stayed with the original 0% loan.

That is also if my car books for $15,000. The good news is an Evo probably does as we have the only Mitsubishi that has great resale value. However if you have put unusually high miles on the car, you may not be able to get the whole amount refinanced. OR your bank might only do 80% of loan value on a refi, and you'd have to come out of pocket.

 

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