Auto Loan Refinance - Yes or No?

[kimbia]

I purchased a 2008 Toyota Camry LE in April 2010 for around $16,500 + taxes and fees. Because my credit was below average at the time, I financed at 10.95% for 60 months, which means my current monthly payments are $402. There is approximately $11,000 left to pay down on the car, which KBB values at approximately $10,500 through trade-in or $11,800 private sale.

My question is, given my current scores (see siggy) are much better than 2 years ago, and taking into account the 2.75 years left on the lease, should I try to refinance? I have 4 inqs on my Equifax and 1 inq on my Experian if that matters.

[pizzadude]

I would guess that it's probably worth your time to do a refi.   Look at the amount of interest that you'll pay over the remaining life of the loan and compare it to what you'd pay if you can refi at say, 3% or something similar.

[kimbia]

Thanks, pizzadude. My objective is to pay down some of the loan faster so I can sell the car and make a small profit in 6-12 months from now. I'm right around the break-even point at the moment and could probably afford to pay $50-75 more per month. I guess the trade off I'm therefore considering is the reduction in interest rate (3-4% vs 11%) vs. whether the impact will be big enough in a 6-12 month period to take the hard enquiry.

Any other advice, my friends?

[kimbia]

Bumping.