Refinancing a car? - Ask Rich / Money 101

instant_oatmeal · 07-22-2009, 12:24 PM

We have a car that has pretty high payments due to our terrible interest rate. When we got it we were just so happy to get a loan without the need of a cosigner we just went along with what the dealer said and didn't bother to check with navy fed. We owe about $9000 on the car right now. We were thinking of putting $3000 on the car and then refinancing for 3 years (which is how long we have left on the original loan). Now, we haven't talked to navy fed yet...I'm just wanting to get ideas I guess.

Then the other night dh said he was thinking about selling the car outright, trying to get at least what we owe for it. He wants to get a different car. Nothing fancy, he's looking to spend around $8000 I guess. He said he found some decent cars online for that price. Then we would just have a brand new loan, with a much better interest rate and the payments would be way cheaper since we could do a 60 month term.

What would you guys do? Have you been in this situation?

rosebud* · 07-22-2009, 12:32 PM

well if you want a 60 month loan you usually have to buy a brand new car or the car has to cost x amount. how much is the car worth? that will let you know if you can refi or sell the car or not.

instant_oatmeal · 07-22-2009, 12:53 PM

I don't really know what its worth...I'm sure not as much as we owe though since we went into that loan upside on our previous vehicle. I've never heard of only being able to go 60 months on a new car. We have always been given that option. Sometimes even 72 months. Is that a new thing since the economy is so bad?

rosebud* · 07-24-2009, 05:45 PM

Originally Posted by instant_oatmeal

I don't really know what its worth...I'm sure not as much as we owe though since we went into that loan upside on our previous vehicle. I've never heard of only being able to go 60 months on a new car. We have always been given that option. Sometimes even 72 months. Is that a new thing since the economy is so bad?

usually its a dollar amount. ( that is why I say a brand new car since most used cars they won't offer you the longer repayment plan)

instant_oatmeal · 07-24-2009, 09:25 PM

Our last loan was for 10000 and we got a 60 month. Hmm

gracie4me17 · 07-24-2009, 11:53 PM

When my husband came back from Iraq he bought his first car. Since his credit was poor and I didnt have any we got stuck with an 18% interest rate. We tried to refinance it but cant seem to get approved. I dont understand because I have a 720 credit score and he is in the 600's. From the three places that we tried to refinance it they wouldnt because the car is not worth the amount that we need the loan for. Currently we owe about 8K and I think we will just pay it off since we can....I dont really know what I am waiting for.

07-22-2009, 12:24 PM	#1 (permalink)
instant_oatmeal Senior Member Join Date: Apr 2006 Posts: 12,603 Classifieds: (0) Activity: 58% Longevity: 61%	Refinancing a car? We have a car that has pretty high payments due to our terrible interest rate. When we got it we were just so happy to get a loan without the need of a cosigner we just went along with what the dealer said and didn't bother to check with navy fed. We owe about $9000 on the car right now. We were thinking of putting $3000 on the car and then refinancing for 3 years (which is how long we have left on the original loan). Now, we haven't talked to navy fed yet...I'm just wanting to get ideas I guess. Then the other night dh said he was thinking about selling the car outright, trying to get at least what we owe for it. He wants to get a different car. Nothing fancy, he's looking to spend around $8000 I guess. He said he found some decent cars online for that price. Then we would just have a brand new loan, with a much better interest rate and the payments would be way cheaper since we could do a 60 month term. What would you guys do? Have you been in this situation? __________________

07-22-2009, 12:32 PM	#2 (permalink)
rosebud* rosebud*<3 Brittany Jo && <3 thekels9 Join Date: Nov 2005 Location: [wherever his heart is] Posts: 32,651 Blog Entries: 2 Classifieds: (0) Activity: 49% Longevity: 67%	well if you want a 60 month loan you usually have to buy a brand new car or the car has to cost x amount. how much is the car worth? that will let you know if you can refi or sell the car or not. __________________

07-22-2009, 12:53 PM	#3 (permalink)
instant_oatmeal Senior Member Join Date: Apr 2006 Posts: 12,603 Classifieds: (0) Activity: 58% Longevity: 61%	I don't really know what its worth...I'm sure not as much as we owe though since we went into that loan upside on our previous vehicle. I've never heard of only being able to go 60 months on a new car. We have always been given that option. Sometimes even 72 months. Is that a new thing since the economy is so bad? __________________

07-24-2009, 09:25 PM	#5 (permalink)
instant_oatmeal Senior Member Join Date: Apr 2006 Posts: 12,603 Classifieds: (0) Activity: 58% Longevity: 61%	Our last loan was for 10000 and we got a 60 month. Hmm __________________

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07-24-2009, 11:53 PM	#6 (permalink)
gracie4me17 Member Join Date: May 2009 Posts: 85 Classifieds: (0) Activity: 0% Longevity: 8%	When my husband came back from Iraq he bought his first car. Since his credit was poor and I didnt have any we got stuck with an 18% interest rate. We tried to refinance it but cant seem to get approved. I dont understand because I have a 720 credit score and he is in the 600's. From the three places that we tried to refinance it they wouldnt because the car is not worth the amount that we need the loan for. Currently we owe about 8K and I think we will just pay it off since we can....I dont really know what I am waiting for.