topic Re: Refinance auto loan for a bonus and lower APR? in Personal Finance

Refinance auto loan for a bonus and lower APR?

kremonis — Mon, 13 Mar 2023 12:12:22 GMT

I just got a new auto loan for $20k on two year old model car. Made one PMT on the first. I am thinking about pursuing an auto loan refinance for cheaper APR and to get an auto loan refinance cash back bonus.

Never done this before. Any tips or "gotchas" I need to be concerned about?

Re: Refinance auto loan for a bonus and lower APR?

LakeLife — Mon, 13 Mar 2023 14:34:58 GMT

@kremonis wrote:
I just got a new auto loan for 20kk on two year old model car. Made onePMTT on the first. I am thinking about pursuing an auto loan refinance for cheaper APR and to get an auto loan refinance cash back bonus.

Never done this before. Any tips or "gotchas" I need to be concerned about?

I did it with NFCU before I made one payment when I bought my RAM. The dealer talked me into Chrysler Financial at a 5 or 6% rate in order to get a $1,500 rebate. I did that, and a week later refinanced with NFCU for 2.29% and a $200 bonus. Worked out perfectly.

Keep an eye on the original account and make sure your gaining lender makes prompt pay off. If not, you may have to make another payment to avoid being late. You'll get the money back after the payoff is met.

Re: Refinance auto loan for a bonus and lower APR?

RSX — Mon, 13 Mar 2023 17:38:57 GMT

yes - i have done this twice lately

used BMWFS to get the car - then re-fi'd at my CU for a lower rate within the first 2 or 3 months

you already got dinged for a new acct - so the second new acct doesnt matter - and you are focusing on finances over scoring

good luck

Re: Refinance auto loan for a bonus and lower APR?

kremonis — Tue, 14 Mar 2023 08:26:26 GMT

@LakeLife wrote:
@kremonis wrote:
I just got a new auto loan for 20kk on two year old model car. Made onePMTT on the first. I am thinking about pursuing an auto loan refinance for cheaper APR and to get an auto loan refinance cash back bonus.

Never done this before. Any tips or "gotchas" I need to be concerned about?
I did it with NFCU before I made one payment when I bought my RAM. The dealer talked me into Chrysler Financial at a 5 or 6% rate in order to get a $1,500 rebate. I did that, and a week later refinanced with NFCU for 2.29% and a $200 bonus. Worked out perfectly.

Keep an eye on the original account and make sure your gaining lender makes prompt pay off. If not, you may have to make another payment to avoid being late. You'll get the money back after the payoff is met.

@RSX wrote:

yes - i have done this twice lately

used BMWFS to get the car - then re-fi'd at my CU for a lower rate within the first 2 or 3 months

you already got dinged for a new acct - so the second new acct doesnt matter - and you are focusing on finances over scoring

good luck

@LakeLife

@RSX

Unfortunately my original lender is NFCU. However, I found another CU that is offering what amounts to $250 cash bonus for refing with them.

So process is I take loan paperwork to new lender and they handle the rest?

Will I incur another hardpull?

Is there way to make sure that the new lenders loan rates are better than NFCU before hardpull?

Re: Refinance auto loan for a bonus and lower APR?

LakeLife — Tue, 14 Mar 2023 12:57:57 GMT

@LakeLife
@RSX
Unfortunately my original lender is NFCU. However, I found another CU that is offering what amounts to $250 cash bonus for refing with them.
So process is I take loan paperwork to new lender and they handle the rest?
Will I incur another hardpull?
Is there way to make sure that the new lenders loan rates are better than NFCU before hardpull?

The gaining lender will take care of everything as far as the title and payoff goes. You may need to add the new lein holder to your insurance account, but that should be it. You'll have to talk to the new bank for information about the hard pull and interest rate. It's up to them.