Auto Loans

[tburns]

Hello,

I have my car financed through my local CU. I've had this loan since last July starting at ~$15k @ 4.74% for 72 Months. I've since paid it down to $9887.70 (Pay off amount as of today) I normally pay more then my monthly amount to lessen the time.

Today I called Alliant CU for a CLI on my Visa with them. They granted my CLI and then said he saw I have a auto loan and if I refinance with them, they will be able to get me 1.99% @ 48 months. My Payment amount would go up $20 a month from $220 to $240 but that is still less then I normally pay a month anyways. And the auto loan would be the same credit pull I used for my CC CLI.

So I called my CU to ask for the payoff amount and was offered a rate of 2.74%. I turned it down asking for the payoff amount anyway.

I'm now wondering if I should call my local CU back tomorrow and accept the lower rate and stay.

I used an interest calculator and over 4 years it would only be just over $200 in savings. But the new loan lowering my AAoA and I just paid my payment today makes me think I might be better off just staying at a 2% lower rate.

So not sure what to do now. Just wondering if someone that has more knowledge would offer advice.

Thanks

[blackie1]

Grow a pair and stay with the CU!!

[webhopper]

In that scenario I would ask the CU to match the offer of 1.99%    Even if they can't, I'd stay with them for 2.47%

[Creditaddict]

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blackie1 wrote:

Grow a pair and stay with the CU!!

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Not sure What the point of this was!?

Alliant is a Credit Union too (if im not mistaken, only hold a savings with them)

However I would call back your CU and take the 2.74% of course after trying to get them to match.

The point is make sure either current loan or new loan come down to 48 months!!!

$10k/ 48 months 1.99% = $217.00

$10k/ 48 Months 2.74% = $220.20

I rather try to keep local if possible!

[tburns]

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webhopper wrote:

In that scenario I would ask the CU to match the offer of 1.99%    Even if they can't, I'd stay with them for 2.47%

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Thanks webhopper and Creditaddict,

After thinking about it overnight I called my local CU today and accepted the 2.74%

They couldn't go lower without a credit pull. The 0.75% over 3 years if I continued to pay $300 a month would only be about 1 payment savings. I don't think it would be worth it to get a new account at this point, having to change the DMV title etc. At least with Alliant trying to get me to refi I was able to get my interest dropped by 2% without changing anything.

[Creditaddict]

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tburns wrote:

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webhopper wrote:

In that scenario I would ask the CU to match the offer of 1.99%    Even if they can't, I'd stay with them for 2.47%

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Thanks webhopper and Creditaddict,

After thinking about it overnight I called my local CU today and accepted the 2.74%

They couldn't go lower without a credit pull. The 0.75% over 3 years if I continued to pay $300 a month would only be about 1 payment savings. I don't think it would be worth it to get a new account at this point, having to change the DMV title etc. At least with Alliant trying to get me to refi I was able to get my interest dropped by 2% without changing anything.

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over 3 years? did you drop down to 36 months or 48 months?

or how mahy months are left in current loan? sounds like you got interest deduction to the 2.74% but kept everything the same as far as how long to payoff?

[webhopper]

That's great!  congrats on saving some moolah!

[tburns]

Yes, I kept everything the same. My payments are $220.83 now and I make $300 a month payments to get it paid off sooner. So if I continue to pay $300 a month with the new interest rate I should have it paid off in about 3 years.