@lctachell wrote:
Just got approved for a auto loan. Up to 20k. But heres the twist, they said I can use part of it to refinance my existing car and then get a new used vehicle with the rest. Of course it has to meet their standards. Refinace from 12.99% (28 months left) to 1.99 for 36 months, about 80 dollars savings a month. then rest at 1.99% for 65 months
That's an awesome twist. This is why I like credit unions. They are so flexible. If I'm understanding correctly, you have a current loan at 12.99% with 28 months left. You will refinance this loan to 1.99 for 36 months? And the payment is $80 less? If correct, what you should really do is refinance before they change their minds and then pay the extra $80 to the principle. As long as they dont have a pre-payment penalty - you will be paying off the loan much sooner than the 28 months you have remaining. The caveat is if you're comfortable paying this amount in addition to the new car loan. Go for it.
