Reply
New Member
Posts: 1
Registered: ‎06-28-2013
0

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?

Super Contributor
Posts: 9,674
Registered: ‎01-28-2010
0

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
0

Re: When to refinance??

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

Member
Posts: 8
Registered: ‎06-27-2008
0

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
Highlighted
Established Contributor
Posts: 830
Registered: ‎10-25-2011
0

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.
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.