New Member
Posts: 1
Registered: ‎06-28-2013

When to refinance??

I just bought my first new car, literally finished the paperwork about 2 hours ago. I was approved for RoadLoans, but it was sitting at 16% interest for $14K loan, payments would've been $315 a month. Tried Capital One and was approved for $19, 16%-18% interest depending on car and payments around $375. Went to the dealership and they were able to get me a loan for a brand new 2013 Cruze, APR is 10.90% and payment is $379 a month. When they pulled my credit, it showed 595, which was the lowest of all 3 that I have pulled, highest being 622. What are my chances of trying to refinance it to get a lower monthly payment? I don't mind the payment right now, it's in my budget but I would love to save a little money by lowering. Would I be better off waiting or trying to refinance it sooner than later?

Posts: 9,674
Registered: ‎01-28-2010

Re: When to refinance??

So you purchased the 2013 Cruize ~ is that correct?

What is the balance owed on the car loan? You'll need to be able to refi the balance, and the book value of a new car drops as soon as you drive it off the lot.

I'd try to refi into a better rate now, there isn't really any reason to wait.
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
New Member
Posts: 11
Registered: ‎05-01-2011

Re: When to refinance??

Anytime the available interest is lower than what your current APR is - that's when

Posts: 8
Registered: ‎06-27-2008

Re: When to refinance??

If the car is new, and you drive it off the lot, doesn't the OP have to pay the balance down so the loan isn't upside down?

Gardenclub as of June 30th - Less than 1 month - seedling
Established Contributor
Posts: 711
Registered: ‎10-25-2011

Re: When to refinance??

jeremyj wrote:

If the car is new, and you drive it off the lot, doesn't the OP have to pay the balance down so the loan isn't upside down?

 No, OP doesn't have to pay down the balance. Most lenders will refinance an upside down loan. There is an LTV threshold all lenders go by until they will decline. But it may be helpful to paydown the balance a little.  

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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