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Can I/Should I Refi an '04?

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Anonymous
Not applicable

Can I/Should I Refi an '04?

I just stumbled on this forum last night and wanted to ask for advice in my situation.

 

I have an older car financed thru Drivetime. I had to go with them in 2011 because nobody would finance me with only 6 weeks work history the prev 2 yrs while in school. On top of that, I had a really low CS (can't remember the exact score, but low 500's). I drove off in a 2004 Dodge Stratus for 12,900 with a 19% IR. I'm paying 175 every 2 weeks for a car I don't care for, but with $6000 left, I feel like I might as well pay it off & keep it since I'd only get maybe $1000 on a trade in. It runs smooth, no issues, so maybe it can be my commute vehicle.

 

Although I want to pay it off, I'm paying tuition, bills and trying to save for a couple of trips and I'm a little behind on my loan currently (will be caught up in 3 mos. at the latest).

So I'm thinking I should refinance my last $6000 and make extra payments here & there to bring down the stress, stop the phone calls, and stop living paycheck to paycheck. Only problem is, I'm not sure if any lenders will refi a car that old, 105K Miles and less than $10000 left on the loan. My TU credit score jumped up last week from 577 and is now a 625, haven't checked the rest yet. I have my student loans (listed as 8 loans but will be deferred next month) and 1 gym membership in collections for $199 which I'm disputing.

What would you do? Best course of action? THANKS

Message 1 of 3
2 REPLIES 2
Dj4Money
Established Contributor

Re: Can I/Should I Refi an '04?


@Anonymous wrote:

I just stumbled on this forum last night and wanted to ask for advice in my situation.

 

I have an older car financed thru Drivetime. I had to go with them in 2011 because nobody would finance me with only 6 weeks work history the prev 2 yrs while in school. On top of that, I had a really low CS (can't remember the exact score, but low 500's). I drove off in a 2004 Dodge Stratus for 12,900 with a 19% IR. I'm paying 175 every 2 weeks for a car I don't care for, but with $6000 left, I feel like I might as well pay it off & keep it since I'd only get maybe $1000 on a trade in. It runs smooth, no issues, so maybe it can be my commute vehicle.

 

Although I want to pay it off, I'm paying tuition, bills and trying to save for a couple of trips and I'm a little behind on my loan currently (will be caught up in 3 mos. at the latest).

So I'm thinking I should refinance my last $6000 and make extra payments here & there to bring down the stress, stop the phone calls, and stop living paycheck to paycheck. Only problem is, I'm not sure if any lenders will refi a car that old, 105K Miles and less than $10000 left on the loan. My TU credit score jumped up last week from 577 and is now a 625, haven't checked the rest yet. I have my student loans (listed as 8 loans but will be deferred next month) and 1 gym membership in collections for $199 which I'm disputing.

What would you do? Best course of action? THANKS


 Have you checked the value of the car on KBB or NADA?

 

 It might only be worth about $6,000.

 

 It will be tough because most re-fi's are 9 years and newer. Depending on the build date of the car, almost nobody will take it. You might have to look at Road Loans for a Re-Fi, Capital One won't touch it and you may find a credit union that will help you.

 

 Your best bet might be to find a dealer that will give you what you owe for it in a trade and get something reasonable about $20,000. With no money down other than your trade and your current scores should get you a payment right round what you pay now, possibly less.

 

 If your TU really is 625 here's what I would do -

 

 Go find a car you want. If you want to keep your payments about the same keep it around $20,000 the amount you want to borrow. You will not be putting any money down, only a trade, your current car. Once you find the car you want, go to TrueCar and get the best price possible. Then apply for a Blank Check from Captial One.

 

 Show up to the dealer with your current car, demand they pay it off with the trade and make sure the car isn't more than your Blank Check and the price given on TrueCar.

 

 With the financing in your back pocket, you have the advantage. If they really want to sell you the car, they will agree to these terms.

 

 

Message 2 of 3
Creditaddict
Legendary Contributor

Re: Can I/Should I Refi an '04?

any local credit unions near you?

Message 3 of 3
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