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Advice on refinancing auto loan

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davewine
New Visitor

Advice on refinancing auto loan

Hello. i need some expert advice please.

 

I currently have a 2012 lexus vehicle which i'm paying $793 a month. i think you and I both can agree this is entirely too much to pay for a vehicle.

I want to have a $300-$400 monthly vehicle payment. I have a 7%-8% interest on it (forgot the exact number).

 

Do you think i'm better off re-financing or just getting another vehicle? I want to act fast because my next vehicle payment is on the 24th.

 

thanks everyone!

 

Edit: split this out into it's own thread --Rev

 

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3 REPLIES 3
Revelate
Moderator Emeritus

Re: Advice on refinancing auto loan

Welcome to the forums!

 

Really depends what your credit score is, how much the loan is, and what the value of the car is at this point.  I assume based on that payment and your suggested interest rate, the original loan was around 40K on a 5 year term, so you have around 25K left finance wise?

 

Around 2% is the best in the industry right now for refinancing, and you'd need to take out a 6 year loan at that rate to get it into the 300-400 range: it's doable but without a good credit report it's not likely to happen.

 

 

 




        
Message 2 of 4
davewine
New Visitor

Re: Advice on refinancing auto loan

the last time i checked back in feb, it was around 620-645. my loan is currently $44,000.

 

any recommendations where to re-fi to get that 2% mark? =)

 

thanks for your time

Message 3 of 4
Revelate
Moderator Emeritus

Re: Advice on refinancing auto loan

The ones I personally know of are Penfed and DCU; there's probably a few others that are similar.  

 

A lot can change in 8 months, I'd pull a report now and look at it, even spending the yuppie foodstamp for something like this... if chasing those two lenders for example I'd just pull the Equifax report here and see what was on it plus the FICO '04 score which isn't a bad benchmark.  You want the score, but of similar importance look at the credit report and see if there's anything you can clean up quickly like credit card utillization.  You could pull the report from annualcreditreports.com as well if you haven't done that, same credit report, no score.

 

Your Feb score, qualified me for a 5.99% as an example from DCU a year ago, but that may have changed and you're refinancing a larger loan than I did which sometimes makes things cheaper, I don't know if 7-8% is that bad of a number with what your scores were back in Feb, but if you're ready to pull the trigger sooner than later, there isn't a lot of time to check and you have a pretty tight window and have to get top tier qualification with those lenders to get the 2%, which may not be feasible.

 

Financially, may wind up having to trade the car in, but the more data you know the begerr off you'll be in either a refinance negotiation or in purchasing a new car.   Just be aware if the car is worth less than the loan, you may have to bring a check to make up the difference on the tradein.




        
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