topic Re: Refinance car loan in General Credit Topics

Refinance car loan

Anonymous — Wed, 13 Jun 2007 19:21:05 GMT

Any suggestions on good companies to refinance a car loan through? My credit score was about 100 points lower when I bought my car so I think I could get a much better rate now.

Re: Refinance car loan

Anonymous — Wed, 13 Jun 2007 20:02:31 GMT

I'm happy with Roadloans.com. Just got a $30k loan at 8.5%. They also do refinance I believe.

Re: Refinance car loan

Anonymous — Wed, 13 Jun 2007 20:30:54 GMT

Wow Rocket! I'm glad to hear of your rate. I was going to try Roadloans when I was ready because I'm worried that my credit union and other places won't approve. Do you mind telling me what kind of scores you had and what they pulled?

Re: Refinance car loan

Anonymous — Wed, 13 Jun 2007 20:38:25 GMT

It was before the latest jumps in my scores, about 630...

I may have been scored a little better on the autoFICO if they pulled one. My baddies are mostly in the CC area.

Re: Refinance car loan

Anonymous — Wed, 13 Jun 2007 20:49:18 GMT

Cool that's in my range too. Who did they pull from?

Re: Refinance car loan

Tuscani — Thu, 14 Jun 2007 01:08:26 GMT

That's a great rate for RoadLoans!

Re: Refinance car loan

smallfry — Thu, 14 Jun 2007 04:19:52 GMT

I don't know if you are eligible for membership into Navy Federal but I just refi'd my car loan today and saved a few bucks. 6% which is not the best rate but decent. Knocked off 6 months of payments and saved $2500 bucks in the process. GAP cost only $200 included in the payments and they deposited a check for $100 into my money market fund. I love NFCU.

Re: Refinance car loan

Anonymous — Thu, 14 Jun 2007 15:45:25 GMT

I was very surprised and happy about the rate. It was better than what the myfico predicted I would get for an autoloan. I dropped 10 pts though on my Experian report, because they claimed it was a finance company account. I figure my autoFICO must be pretty good, with two TLs and just a few lates each...

Re: Refinance car loan

Anonymous — Thu, 14 Jun 2007 15:57:19 GMT

I don't have any auto loans on my reports...My scores are EX573, TU573. EQ601.

What are my chances of getting an auto loan? I am trying to buy a used car in 6-8 months from now. What rates can i expect with this score at this time? And who would approve me?

Re: Refinance car loan

Anonymous — Thu, 14 Jun 2007 16:05:01 GMT

With 6-8 months to go, you have lots of time to increase those scores! Mine went up 100 points in 5 months from really paying down my credit cards and disputing erroneous accounts. You would still get approved for a car loan though. My score was about 550 when I got a Blank Check loan from Citifinancial, APR was not great though (~10%); which is why I would like to refinance soon!

Re: Refinance car loan

Anonymous — Thu, 14 Jun 2007 16:08:12 GMT

According to the myfico website, you'd get...

14.3% at current score

10.9% at 620

I posted elsewhere an encounter with an owner of a used car lot while being a lookiloo at an very expensive model home here in Huntsville on Saturday. He was bragging about selling a few hundred cars per month. He said, "Anyone can have a car on the lot at 28% interest". Be careful out there!

Re: Refinance car loan

Anonymous — Tue, 03 Jul 2007 00:18:27 GMT

Instead of financing your next car, that will quickly go down in value, why not just buy a car for cash for $2000? Keep it six months and without a car payment, you can probably save the $400 a month you would have spent on payments. Then take that $2400 and trade in your $2000 car for a $4400 car. A year later again trade up with the money you saved on car payments to a $8000 car that is totally paid for.

A FICO score is nothing more than an "I love debt score" Pay cash and you win in the long term.

Any one want to challenge my thought process on this.

Re: Refinance car loan

Anonymous — Tue, 03 Jul 2007 17:04:41 GMT

bobkelly wrote:
Instead of financing your next car, that will quickly go down in value, why not just buy a car for cash for $2000? Keep it six months and without a car payment, you can probably save the $400 a month you would have spent on payments. Then take that $2400 and trade in your $2000 car for a $4400 car. A year later again trade up with the money you saved on car payments to a $8000 car that is totally paid for.

A FICO score is nothing more than an "I love debt score" Pay cash and you win in the long term.

Any one want to challenge my thought process on this.

Heh bob,

How much is your book and tape series? The Gold Line Series? Not the Silver. I want the Fully Monty for my money.

However, I won't be able to wire you the money before the 15th. Everything is currently tied up assisting the Minister of Treasury for the Liberia. Long story short, his brother-in-law, the King, was deposed, in total violation of the IRS code and the Emancipation Proclamation, and he just needs the money short term, in U-Bills. You've heard of T-Bills, well these are the next generation. Get in while you can, man.

Re: Refinance car loan

Anonymous — Tue, 03 Jul 2007 17:54:26 GMT

bobkelly wrote:
Instead of financing your next car, that will quickly go down in value, why not just buy a car for cash for $2000? Keep it six months and without a car payment, you can probably save the $400 a month you would have spent on payments. Then take that $2400 and trade in your $2000 car for a $4400 car. A year later again trade up with the money you saved on car payments to a $8000 car that is totally paid for.

A FICO score is nothing more than an "I love debt score" Pay cash and you win in the long term.

Any one want to challenge my thought process on this.

This is really getting old.

Re: Refinance car loan

Anonymous — Wed, 04 Jul 2007 01:55:54 GMT

bobkelly: You contradict yourself. How come the used cars in your example don't go down in value? A $2000 car is still worth $2000 a year later? And a $4000 used car is still worth $4000 a year later?

I don't disagree with your basic premise - but the actual workable scenario is that you put your $400 that would have gone into a car payment into an interest bearing account.

Me? My car is 27 years old. Yeah, my friends give mem a lot of crap about it, but it starts, runs and drives. Plus, it's a semi-rare car, so it's actually going up in value every year I hang onto it...

Re: Refinance car loan

Anonymous — Wed, 04 Jul 2007 05:04:40 GMT

It seems that Bob has forgotten also that used cars broke down more often than newer cars. A $2k car has a high probability of breaking down in 6 months than a newly refinanced used car. The newly refinanced used car is likely to include extended warrantee required by the finance company to ensure the car will last thru the contract term. That's not the case with cash-n-carry kind of purchase. In the end, you end up spending more for repair than the car is worth; and the projected $2400 will be gone and you are left with a car that has zero trade-in value and less than $500.00 in local market value. The problem with Bob's kind of wisdom is that it rarely takes into consideration the unknowns. And it is the unknowns that's often the death knell of many a good intentioned money saving "wisdom". Just my 2 cents.

Re: Refinance car loan

smallfry — Wed, 04 Jul 2007 06:21:02 GMT

@Anonymous wrote:
bobkelly: You contradict yourself. How come the used cars in your example don't go down in value? A $2000 car is still worth $2000 a year later? And a $4000 used car is still worth $4000 a year later?
I don't disagree with your basic premise - but the actual workable scenario is that you put your $400 that would have gone into a car payment into an interest bearing account.
Me? My car is 27 years old. Yeah, my friends give mem a lot of crap about it, but it starts, runs and drives. Plus, it's a semi-rare car, so it's actually going up in value every year I hang onto it...

Semi rare car? You must have a Ford that still runs. LOL.

Re: Refinance car loan

Tuscani — Wed, 04 Jul 2007 15:15:54 GMT

@smallfry wrote:

@Anonymous wrote:

bobkelly: You contradict yourself. How come the used cars in your example don't go down in value? A $2000 car is still worth $2000 a year later? And a $4000 used car is still worth $4000 a year later?

I don't disagree with your basic premise - but the actual workable scenario is that you put your $400 that would have gone into a car payment into an interest bearing account.

Me? My car is 27 years old. Yeah, my friends give mem a lot of crap about it, but it starts, runs and drives. Plus, it's a semi-rare car, so it's actually going up in value every year I hang onto it...

Semi rare car? You must have a Ford that still runs. LOL.

HAHAHAHHAHAHAHAHA!!!!!

Re: Refinance car loan

Anonymous — Fri, 06 Jul 2007 03:56:46 GMT

Use some logic people. Of course a 27 year old junker is not dropping in value anymore, it's only worth about $500 anyway. However, it goes without saying that a new car will go down in value faster than a 10 year old car will.

Ever known somebody who's been "upside down" in a new car loan? Probably. But, it's impossible to be "upside down" on a car you paid cash for.

Sure, my argument is simplified for discussions sake. No one's suggesting you should spend $5000 to rebuild a blown motor in an old Pinto, but maybe spending $100 on a broken raditor hose might be worth it. That's the point I was tryin' to make.

Perhaps I should have said you can save up for a purchase and live within your means without borrowing a ton of $$$. It just takes a little patience my friend, patience.

Message Edited by bobkelly on 07-05-2007 10:56 PM