Is refinancing a good idea?

[Anonymous]

Congrats!! I had a few questions. So I'm impatient and I cracked! I've been waiting to get a new car until my credit score improves... I currently have a 660. I just received a letter from Target that they are deleting a negative account from my credit report. I was planning on waiting until it was reflected on my report. Well... I went to the dealership with my husband to find HIM a car. The 1 car he really wanted to see was being detailed... anyways long story short... I test drove a car, loved it and the salesman was a friend of my husband and offered a really good trade-in value for our current car. Beleive me the car is not worth what they offered. So we took the offer and I got a car. I know over all it was a good deal. I was hoping for the .9% financing they were offering. They said you needed a credit score of 720 to qualify for it. I don't know if the Target removal will help me get there... it was a pretty negative account ( I've learned my leasson). There is a few other things I'm disputing and correcting on my report that should be resolved by Oct. anyways... I was thinking about refinancing my auto loan through a credit union. I am an idiot. really. I should have waited. my husband is a bad influence on me. Oh well.. So I financed about 25000 ( taxes, warranty,,) total. ( purchase price of car after trade- 22200) It did 72months with 7.9% interest. my payment is $438/month. I want to wait till Oct when I know my credit will jump. Is refinancing a good idea for me? How much does it cost? how does it work? thanks!!!!! Congrats again!!

[llecs]

OP, I split your post to form a new one here. I had to edit the title, but changed nothing else. If you'd like to change the title, click "Options" and then "Edit Message".

[Anonymous]

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@youndANDstupid wrote:

Congrats!! I had a few questions. So I'm impatient and I cracked! I've been waiting to get a new car until my credit score improves... I currently have a 660. I just received a letter from Target that they are deleting a negative account from my credit report. I was planning on waiting until it was reflected on my report. Well... I went to the dealership with my husband to find HIM a car. The 1 car he really wanted to see was being detailed... anyways long story short... I test drove a car, loved it and the salesman was a friend of my husband and offered a really good trade-in value for our current car. Beleive me the car is not worth what they offered. So we took the offer and I got a car. I know over all it was a good deal. You have already sold yourself on the transaction there is nothing more anyone can say.  I was hoping for the .9% financing they were offering. They said you needed a credit score of 720 to qualify for it. I don't know if the Target removal will help me get there...Probably not. it was a pretty negative account ( I've learned my leasson). There is a few other things I'm disputing and correcting on my report that should be resolved by Oct. anyways... I was thinking about refinancing my auto loan through a credit union. I am an idiot. really. When people say that they are usually using that as a passive aggressive way to justify/explain their poor decision. I should have waited. Yes. my husband is a bad influence on me. Oh well..So you really do not care. So I financed about 25000 ( taxes, warranty,,) total. ( purchase price of car after trade- 22200) It did 72months with 7.9% interest. my payment is $438/month. I want to wait till Oct when I know my credit will jump. Is refinancing a good idea for me? No idea How much does it cost? Usually "free" how does it work? thanks!!!!! Congrats again!!

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You bought a $438 a month payment for 72 months? WOW $31,536 You were hoping for .9% but settled for 7.9%...umm OK.

You can refinance through a bank or credit union. In most cases its "free" but the original loan you have may have a pre payment penalty, and/or depending on the bank you use they may have a "fee."

A .9% rate is no longer possible.

That type of rate is a subvented rate, offered as an incentive to purchase a new car. Since you have purchased a the car it is no longer offered.

This is a purchase decision that you are going to have to be happy with for SIX, yes SIX years.

Good luck.

[Anonymous]

Well... let me clarify.  I was HOPING to get the 0% or the .9% financing.  however... I did not qualify for it.  You have to have a credit score of 720.  I had a 660.  I had a recent deletion on my credit report but I don't think it would have brought me near 720 anyways.

I guess I should refinace then.  thanks.  There is no prepayment penalty.

[Anonymous]

This was my first car purchase, that I already feel guilty about buying.  thanks for being so harsh and making me even more regret my purchase. 

[Anonymous]

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@youndANDstupid wrote:

This was my first car purchase, that I already feel guilty about buying.  thanks for being so harsh and making me even more regret my purchase. 

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I am not a mindless cheerleader.

You basically did EVERYTHING that any advice post about buying a car tells you not to do. (I think the only thing you did not do was take the loan to 84 months.)

You have a screen name that says youngANDstupid.

Your post is filled with passive aggressive statements deflecting yourself from responsibility for the transaction.

I am sure its an awesome car, and be happy  BUT YOU SIGNED UP FOR 6 YEARS OF $436 payments, while you are still in recovery from bad credit choices.  While you probably had a car that  both RAN and  was paid off.

Please go ahead and refi, you will probably have to wait 6-12 months. and assuming you do not refi for a longer ter,m (ie you refi for the months of your original loan minus the months that have passed0 you can probbaly lower your payment to about $400- $410.  Thats it. You are not going to go much lower.

You are going to/already hate and regret this transaction any way, without my involvement

[Anonymous]

First off.. I do appreciate any advice anybody can give me.

Second off-  This is a place for people to help each other and place to be able to ask questions.

Third off- you know nothing about me or my situation.except I bought a car. 

My question was about auto refinancing.  Obviously I realized that I should have waited another month.  which is why I asked the question.  Are you this harsh when you respond to all posts?

[Anonymous]

First off.. I do appreciate any advice anybody can give me. I gave you good advice. NON sugar coated. But still good.

Second off-  This is a place for people to help each other and place to be able to ask questions. Yes it is. And I do not want to be viewed as driving you away. But there is a huge disconnect if you think that any criticism is terrible and harsh. $436 is huge. Thats 50 less then MY RENT. And for 72 months? Thats a near mortgage for some. And you already hate/Question your decision. 

Third off- you know nothing about me or my situation.except I bought a car. Actually: with the screen name you choose, and research into your past posts, the verbiage used in your current posts and your deflection/inflection in writing I know more about you then you think. i;'m sure you do not like to believe that, but its true.

My question was about auto refinancing.  Obviously I realized that I should have waited another month.  which is why I asked the question.  Are you this harsh when you respond to all posts?

[Anonymous]

First off.. I do appreciate any advice anybody can give me. I gave you good advice. NON sugar coated. But still good.

Second off-  This is a place for people to help each other and place to be able to ask questions. Yes it is. And I do not want to be viewed as driving you away. But there is a huge disconnect if you think that any criticism is terrible and harsh. $436 is huge. Thats 50 less then MY RENT. And for 72 months? Thats a near mortgage for some. And you already hate/Question your decision. 

Third off- you know nothing about me or my situation.except I bought a car. Actually: with the screen name you choose, and research into your past posts, the verbiage used in your current posts and your deflection/inflection in writing I know more about you then you think. i;'m sure you do not like to believe that, but its true.

My question was about auto refinancing.  Obviously I realized that I should have waited another month.  which is why I asked the question.  Are you this harsh when you respond to all posts?

[Anonymous]

I am aware the $438 is a large car payment.  The car payment matches the car price.  I make great money that I work very hard for.  I can afford the car payment.  I have made mistakes in the past.  I have learned from them and I am still learning...everyday.  The payment does not bother me.  I'd like to get something with lower interest... That's it.  I also usually own my cars for a very long time... 

I've earned everything I've ever had.  I do no regret buying myself a car.  I make extra payments on my credit cards, mortgage and previous car loans.  I regret not waiting a month for a better interest rate.. which realistically I would have not qualified for a 0% rate. 

I created my screen name is 2008 because I was young and stupid.  sadly once you create a name you can't change it.  

I never asked anyone to sugar coat anything but I never asked to be judged either.  I admit my mistakes and I accept responsibility.  i accept blame.

It is also extremely creepy that you've researched my past posts.   That still doesn't mean you know crap about me or my situation. 

I don't need harrassment.  Please don't respond to my threads any further.

[incognitony]

You don't have to explain yourself. The advice would be just as helpful (or not helpul) without a lecture attached to it. I guess you asked for it by posting TMI  

I'm somehow reminded of what the phlebotomist did to my arm this morning.