HotCarl Posted December 23, 2008 Report Share Posted December 23, 2008 So Ive always thought this was a bad idea but never really know what the downsides were. When buying my jetta 3 years ago I was in need for a car, fast. So i didnt really have the luxury of shopping around for my interest rate as i did for my eclipse. Long story short Im upside down on the jetta and want to either get rid of it for something cheaper or simply refinance for a cheaper monthly bill. Ive narrowed it down to turning it in for a leased car. rolling over the negative equity into another used car (not really interested in this) or simply shopping around to buy the car from myself using another finance company (most likely a credit union bc they always quoted me the best rates for my Eclipse). The car is mechanically in good condition but since my POS step dad wrecked it and has yet to pay anything to fix it its not really asthetically pleasing which fuck's up the KBB trade in value. I know for a fact i could shop around and find an interest rate 5-7 points lower than what Im paying right now through Honda Financial, but is it smart to refinance a car? So, any opinions on this? Quote Link to comment Share on other sites More sharing options...
99ta Posted December 23, 2008 Report Share Posted December 23, 2008 well seeing how you only have two years left to pay and if you refi you will be stuck with it for another 5. I would say its a bad idea. Good luck though. Quote Link to comment Share on other sites More sharing options...
OSUGT Posted December 23, 2008 Report Share Posted December 23, 2008 Normally, I would say it's not really worth it. However, if you can manage to get 5-7 points lower on your rate, it's worth running the numbers. Just make sure if you refi that you don't take the term out so far that you end up paying more in the end. Good luck with everything. Quote Link to comment Share on other sites More sharing options...
twistedfocus1647545489 Posted December 23, 2008 Report Share Posted December 23, 2008 It'd agree that it's worth checking out. I refinanced my last Mustang with 2 years left to go. I just called up the bank the existing loan was through and told them I'm shopping around to refinance and they came back with a decent offer. As mentioned above, just be careful not to extend the term much (if any) or you're flushing money away "buying a lower payment" rather than actually saving money. When I did mine my goal was to reduce it $100/month. They took the interest down 3 points (it was already not too bad) and tacked on another 6 months and we were there. The longer term made a little money back for them, but got my bills down and still actually saved me a little off the total of the payments. Quote Link to comment Share on other sites More sharing options...
Wonderboy Posted December 23, 2008 Report Share Posted December 23, 2008 I was in the same situation with my car. I refinanced 6 months after buying it and got 10 points of my interest rate. It worked out well for me. Quote Link to comment Share on other sites More sharing options...
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