Re: How soon is too soon to refinance an auto-loan?
09-30-2012 01:36 PM
Always get an "Option Contract" when you finance a car, unless you are pretty certain you're all good rate-wise. First review the contract you have and see if there are dates on there. I think it's an addendum that most dealerships would add saying, specifically, that you have an Option Contract. They usually can range from 3 to 10 days, which allows you to bring in any other method of financing within that time frame, but you will default to the approved financing method if not.
You could call the dealership and ask, but they might lie. They probably get some "back-end" money from BMW Finance for every loan they kick over, and would get none if you brought in your own financing.
On a side note, having those premium car finance companies on your CR enhances your profile to lenders. The credit card companies etc buy marketing lists from the bureau, and (believe it or not) some of the criteria they use is what type of banks are on your report. Having a MB or BMW or other high-line outfits might get you offers that you otherwise would not. Chase might send you sweetened offers for the Sapphire Preferred as opposed to the Freedom (tailored for you) assuming that you have more disposable income and like travel rewards. Or maybe Amex sends you one of the infamous 100k MR point Platinum invites. Not saying that other things don't matter, but I know from my own experience (and working at corporate for a huge bank for a lonng time) that this "proile" thing is true. Is it worth paying extra for? Your choice. If it rounds out to an extra $80 in interest over the life of the loan, maybe it's nothing to worry about. If it's $800, maybe not worth it for most.