How soon is too soon to refinance an auto-loan?
08-29-2012 04:06 PM
Hi all - so I recently got pre-approved by my Credit Union for an auto-loan, but while at the BMW dealership, they gave me a better rate by a few percentage points. It was significant enough and made a difference on my monthly payment for me to go ahead with the internal BMW financing. Also, it was Sunday and my bank was closed to try and negotiate. Needless to say, I got a good deal and drove the car home happy.
Then come Monday, I called my CU to essentially let them know I was dissapointed that BMW could come in lower than them. MY CU is usually always the lowest rate given my FICO. And after talking to them, they've come back and beat BMW's rate by a little, so now I'm really considering taking their new rate and keep all my financing with one bank.
So BMW is at 6.39% and my CU is offering 5.99% for this auto loan.... technically, I've already purchased the vehicle through BMW, and would need to wait for the bank paperwork and DMV registration to be processed (2-4 weeks), before I could turn around and give the business back to my bank... but the question is how do the credit bureaus see this? And what are your general thoughts on doing it so quickly?
Should I wait to refinance with my CU for a few months, 6mos, year? How can this impact my score?