Is it possible to refinance this vehicle??...

[silly34]

2004 Pontiac Grand Prix GTP, has just over 100,000 miles.  My wife and I bought it in 2007 with 40k miles (we drive a lot).  The interest rate is 12 or 14%.  The pay off is about $14k (rolled in a trade-in).  I had asked my credit union a long while back and they said no because of the vaule of the vehicle.

B.

[Anonymous]

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@silly34 wrote:

2004 Pontiac Grand Prix GTP, has just over 100,000 miles.  My wife and I bought it in 2007 with 40k miles (we drive a lot).  The interest rate is 12 or 14%.  The pay off is about $14k (rolled in a trade-in).  I had asked my credit union a long while back and they said no because of the vaule of the vehicle.

B.

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Gonna be slim pickins for the following reasons:

1. Car Value (most lenders won't lend above book value...though some will go 125%)

2. Car Age (many lenders have max age limits)

3. Car mileage (many lenders won't lend on vehicles at 100k miles)

You are going to have to shop around for this one.  I am assuming based upon the APR your credit was challenged when you bought it.  How is your credit now?  What is your FICO?  What derogs and what positive?  What is your income and do you have any cash you can put toward the negative equity?

If you are at 14% now, but you have substantially improved your credit and scores, you could possibly get a better rate on a personal loan or even credit card.  And if not for the full value of the car, then for a portion, possibly enough to get the balance down to where somebody might refinance it.

But if your credit is poor, you are facing slim pickins, if any. 

Message Edited by txjohn on 05-19-2009 11:22 AM

[silly34]

Yeah we got it at a time when our scores weren't so great.  But things have improved dramatically since then.  Can't really do much with it still excepting keep on paying on it.  Lesson learned.

[Anonymous]

Have you opened an account and begun developing a relationship with a good credit union yet?  I highly suggest, if not, that you do.  They are a goldmine when it comes to credit and loan needs, and part of their decision will be a relationship.

[silly34]

Been a member of my credit union for almost 10 years now, NFCU for almost a year.  Just the age and mileage on the vehicle has been the problem.

[Anonymous]

NFCU.....hmmmmm.  NFCU is credit generous.

Well, NFCU has credit cards as low as 7.9% and they tend to give higher CL's than most.  Do you keep cash with them, direct deposit, use checking or any past loans? 

Does your current 10 year CU have decent personal loan rates?  Sometimes refi might not be the solution, maybe a Personal loan for 4-5% less interest would be better because then mileage and age aren't even the consideration????

Something to look into, maybe.

[Anonymous]

The following is tough love advice. You may or may not like it, but you and your wife are in a pickle.

Do you have GAP coverage on your car loan?

Your car is not worth $4,000.

If your car was to be totaled in an accident you would be on the hook for more than $10,000 to satisfy the loan. 

You drive way too much to be driving financed vehicles.

I am not sure if it is pleasure driving or you both have long commutes, or just lifestyle choices- but you have a huge albatross around your neck right now.

You both need to dig down and make some lifestyle choices that involve doing your best to PAY THE LOAN OFF ASAP. If you do not have GAP you need to try even harder. Your car needs to be paid off. You need to sacrifice and scrimp and ramen noodle it.

You should not be putting that many miles on a financed vehicle, you should not be rolling negative equity into vehicle loans you are planning on driving that much.

You are putting 30K a year on your cars. You need to keep the financing to a 36 month term.

[silly34]

This is all old news...had you provided it several years ago it would have been very helpful.  We are already paying more on the monthly paymens but it isn't much going to matter other than getting it paid off ealier.  We don't have a choice but to drive long distances for work (around 100 miles a day roundtrip).  I'm not really concerned about it since I know what is going on and what needs to be done..it is just a big financial burden.

B.