Auto Loans

[napplegate]

I have recently raised my scores quite a bit since I purchased  vehicles in 1/12 and 10/12.  I was contemplating attempting to refinance both 6 months from now as my scores should have gone up further and payment history will be more established.  I have never refinanced before and really have no clue as to where to start.  I have shifted all of my banking to Chase within the last 3 months and have the most recent loan for $50,367 with them @ 6.95%.  I have the other loan for $24,461 with BMO Harris @ 9.55%.  I currently have 4 inquiries within the past year on TU (grouping 6 inquiries for the recent loan as one), 0 on EQ and 8 on EX.  I have a PIF charge-off from 6/2009 but perfect payment history on all other accounts.  I recently opened a CSP 11/12, Freedom 12/12, AMEX PRG 1/13, AMEX BCE 1/13 and Mercedes AMEX 2/13.  Would it benefit me to wait longer than 6 months to refinance?

[Dustink]

I think you could get into a better rate now. Do you have a relationship with any CU's?

[creditkarma2013]

Apply at a local credit union. Much better rates.

[acleynes]

Lenders will only refinance you the current market value for your vehicles. Hopefully you are not upside down that much on your loans.  If you are, then you need to pay off the difference between what you owe and the car's current market value.

I know a lot of finance managers at dealerships that need to be slapped across the face for telling a lot of people who buy used cars they can refinance after 6 months and get a better interest rate.  That is very misleading.  Since the moment you drive away with the car, the value of the car depreciates significantly.  Unless a person places a large down and paid extra for 6 months, a person who buys a used car is typically still upside down on their auto loan after 6 months.

Since you have new vehicles and are wishing to refinance, I would be wary about putting excessive miles on those vehicles until I get the refinance loan approved to preserve the market value.

[Dustink]

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acleynes wrote:

Lenders will only refinance you the current market value for your vehicles. Hopefully you are not upside down that much on your loans.  If you are, then you need to pay off the difference between what you owe and the car's current market value.

I know a lot of finance managers at dealerships that need to be slapped across the face for telling a lot of people who buy used cars they can refinance after 6 months and get a better interest rate.  That is very misleading.  Since the moment you drive away with the car, the value of the car depreciates significantly.  Unless a person places a large down and paid extra for 6 months, a person who buys a used car is typically still upside down on their auto loan after 6 months.

Since you have new vehicles and are wishing to refinance, I would be wary about putting excessive miles on those vehicles until I get the refinance loan approved to preserve the market value.

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