Hello everyone! I just bought my first car(mustang 2014) yesterday for $29,995 and made a down payment of 4,000. I financed with the dealer (fico of 675) a 9.95% loan with 72 payments. since I am 24 years old the insurance premium made my car payment go to $540 monthly. My parents have and all inclusive insurance and their agent told me they can add me so I can lower my payment and the are working on it.
I was wondering if I should refinance my loan with my jobs credit union which is giving a 3.49% interest for GE employees? Would that be the correct choice? If I refinance what would happen to me down payment? Will it affect my credit report negatively since not even a week has passed?
Sorry if some of these questions are dumb, It's the first time I buy a car.
If you are already qualified to refinance at 3.49%, you should do it. That's a huge savings.
If you bought the car for $30,000 rounded up and you put a down payment of $4,000 you're current loan amount should be $26,000. If you refinance at the credit union your loan amount should be about $26,000 plus a little interest maybe. So you're down payment still reflects in the LTV. I don't think it will negatively reflect on your credit.
But if I was in your shoes, I would for sure take the refinance.