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New Contributor
Vikz27
Posts: 77
Registered: ‎03-13-2013

Help! Should I....

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.
Established Contributor
SamsungHDTV
Posts: 517
Registered: ‎10-25-2011

Re: Help! Should I....


Vikz27 wrote:
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.

I'm a personal banker and do a lot of auto loans serving the Houston area.
I suggest first time car buyers to read the sticky guide in the auto loan section.
I try to check these forums often, but if I missed your post, please feel free to message me with a link to it.

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