My Car loan has about $19,800 to pay off at 2.49% interst for the next 48 months. I can get a lower interest rate if I do a few things: 1) I need to shorten the loan payment time to 36 months, which is not a problem. 2) I need to take the loan out for $1,000 over the KBB value (which is about $20K, so I need to take out a loan for $21K, but I can take that $1,000 and pay the principal off with that as soon as they send me a check), and 3) I must pay $700 down-payment (this is because they wont loan for over KBB value and while my loan is slightly under KBB, the extra $1,000 i must take out means i would go over KBB value by just under $700).
My new interest rate would be 1.49% (but would be for about $21K total because of that extra $1,000 i must take out) and I am okay to make the higher monthly payments because it isnt that much of an increase. I also would hope to pay off either loan in less than 3 years, so is this a good idea or should i stick with what I have? Thank you.
