Sebastian4281
New Member
Cash: $ 0.90
Posts: 4
Joined: 29 Dec 2005
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| Refinancing Auto Loan?? |
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Last February i bought an 05 SUV for $31,000 roughly. I put down $12,000...did not have a car to trade-in....and my credit was shot for starters. Nothing major i really have no credit history (ive owned 2 $500 max credit cards in my life) and the small history i do have was 2 credit cards i maxed out and didnt pay that went to collections in 99 and 00....
I took a $19,000 loan at 18.25%, $490/month for 60 months with citifinancial....I was getting smoked on the interest ($11,000 over 5 yrs), so i have been making double payments each month ($980/month) for just about a yr now.
My question is, when and how should i look to refinance this loan? I have heard before to wait atleast a full yr of payments on time before even considering refinancing. My main problem is i work under the table so my income is never shown other than check stubs from my boss. At 18.25%, i must be able to do better somwhere else, right?
Thank you for your help everyone....
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Thu Dec 29, 2005 5:56 pm |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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| Re: Refinancing Auto Loan?? |
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quote:
Originally posted by Sebastian4281
At 18.25%, i must be able to do better somwhere else, right?
I don't know, but I would say 'no'...because the collateral (SUV) has depreciated and you are likely upside-down (the loan is more than what the car is worth; go to kbb.com and see).
You and your g/f really need to say away from usurpury interest rates!
i.e. in first half of '05, a good auto interest rate was 5% to 6%.
"Expect me when you see me."
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Thu Dec 29, 2005 9:20 pm |
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Sebastian4281
New Member
Cash: $ 0.90
Posts: 4
Joined: 29 Dec 2005
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| Re: Refinancing Auto Loan?? |
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quote:
Originally posted by Rolo
quote:
Originally posted by Sebastian4281
At 18.25%, i must be able to do better somwhere else, right?
I don't know, but I would say 'no'...because the collateral (SUV) has depreciated and you are likely upside-down (the loan is more than what the car is worth; go to kbb.com and see).
You and your g/f really need to say away from usurpury interest rates!
i.e. in first half of '05, a good auto interest rate was 5% to 6%.
You also must remember that my credit score at the time was 570ish with no income showing. If it wasnt for the 12,000 i put down i wouldnt have been approved at all. I had nothing showing on my credit report except 2 negative comments and 2 collection agencies.
18.25% interest was a terrible rate but considering my situation it was the best i could do. My 19,000 auto loan would end up being $30,000 out my pocket after 5 yrs at that rate!!
I pay double payments (a little under 1,000/month) to have this sucker paid off in 26 months instead of the 60 months. The interest will end up costing me 3300 instead of 11,000 by going this route!
To answer the questions you asked...
I owe $12,000 on the car and kelley blue book has the trade-in value at 18,300 roughly. Do you think refinancing is a possibility
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Thu Dec 29, 2005 11:09 pm |
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Dus10
Member
Cash: $ 3.40
Posts: 17
Joined: 30 Dec 2005
Location: Indianapolis
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It is hardly impossible to get refinancing for an auto loan, especially one that is relatively new. Check out a credit union. You have to open a savings account in order to become a member, but they do this sort of stuff all the time. Plus, you will probably be able to get a MUCH better rate (5-7%), and lower the term to three years, all while getting a better monthly payment.
Even if you still paid ~$1000/month, it would help because a significantly larger portion of the payment would go to principal.
The Advantages of Credit Unions
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Fri Dec 30, 2005 1:32 pm |
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