AUTO LOAN REFINANCE & REFUND

[Anonymous]

I was approved for an auto loan from Santander Consumer USA for Honda Civic 2014 LX 

• Loan Amount: 16931.17
• Down Payment $5000
• Term in months: 72
• Interest rate: 7.04
• Monthly Payment: $289.43

I have two questions before taking any further decision. 

1. When I was buying the car, my dealer forced me to add Honda Care Warranty Coverage for 7 years OR 80K miles. the warranty was cost me about $1500 + TAX. this was included in my auto loan amount. (dealer told me this is a requirment for the auto loan by the bank)

After contacting the bank and honda care, I foundout that this was a false information. then I had requested a refund from Honda Care and they send a refund cheque to the bank. The bank deduct the refund as payment and then I asked them to deduct refund from the principl. since, I have the ability pay the loan by monthly.

Then they said refund will be reflect after I payoff the loan. in this case monthly payment stays the same and I'll have to pay the loan for 66-67 months.

I have a feeling that I will over paying the loan since I still pay the same monthly payment which was calculated for the first loan amount. what should I do now?

2. I'm thinking about trade the Civic 2014 LX about year later and get the new Civic 2016 EX-L

2.1. Is it good time to trade after about year later?

2.2. How I do the trade?

2.3: What If I'm going to refinance the car?

2.4 Any suggestion about the situation?

[Creditaddict]

1. go to a different dealer next time since this one was clearly shady with you.

2. no probably not best to trade in after only a year when you financed on a 72 month but you also put $5k down so maybe you won't be to upside down.

if you have a carmax near you when you are ready to get a new car I would look at selling the car directly to carmax and paying any different in your currently loan and what carmax will give you so you can go into honda with a clean slate and just buy the new 2016 with no trade and hopefully with credit history and auto loan history this time you would qualify for honda financing which probably will have 0% for a certian period on the civics.

2.3 do you have any local credit unions around you or are you a member of any? I would stop in and talk to them aboue refinancing your car now and bringing down the term to at least 60 months while you are at it.  They will just call up and get your current payoff from santander and depending what your credit looks like now could probably get better rate now too.

possibly worth joining DCU and applying for refinance with them now if you have the income docs to support the loan.

[Anonymous]

Creditaddict,

Thank you very much for the reply.

I'm in NY and I do have MCU around my area. I heard they have very bad customer service etc. I also have TDbank in my area.

what is the best time to refinance the car again? how should I maintain my credit score for the refinancing?

I don't have a carmax near by me.

[Creditaddict]

I would look at DCU now

[Anonymous]

will I able to get an auto loan from DCU since I'm in NY?

[Creditaddict]

Think you can join through a membership somewhere and than you can live anywhere.
I'm in CA for one and am a member.
They are actually doing a friends promotion for new members right now if you want invite private me your email! then your right in with a bonus

[Anonymous]

open a DCU checking account and waiting for application review.

can you explain how do I proceed with auto refinance with them?

[Creditaddict]

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@Anonymous wrote:

open a DCU checking account and waiting for application review.

can you explain how do I proceed with auto refinance with them?

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call them once the membership is set up and tell them you would like to refi your car, they can call and get payoff for you and all that stuff.

[Anonymous]

thanks a lot for cool guidance! will keep you updated