Auto Loan Question - Pay off get another loan? or continue paying?

[DaUsMsB]

We currently got our 1st car loan in may after discharge on march 2014.  High interest rate as expected...12%...but wanted to build with something.  I've been paying monthly/early/ and a little extra.  We are in need of another car now.  So in 14days or less I plan to buy another.  We owe roughly 19k on our current loan...my question is.  Will it hurt paying it off early and getting another loan and hopefully getting a lower rate? Or should I just pay cash for another car and continue paying my 12% rate and try to get a refinance soon?

If I forgot anything, please let me know.  Any help will be greatly appreciated.  I saw DCU here and a lot of folks getting lucky...I filled out the form a little while ago since I know I'm going to get something soon....one way or another.  We want to get a brand new car...and I think I may be able to get a better rate doing so.  The current 12% is a 2014, but was used.

Thanks!

[Dj4Money]

---

@DaUsMsB wrote:

We currently got our 1st car loan in may after discharge on march 2014.  High interest rate as expected...12%...but wanted to build with something.  I've been paying monthly/early/ and a little extra.  We are in need of another car now.  So in 14days or less I plan to buy another.  We owe roughly 19k on our current loan...my question is.  Will it hurt paying it off early and getting another loan and hopefully getting a lower rate? Or should I just pay cash for another car and continue paying my 12% rate and try to get a refinance soon?

If I forgot anything, please let me know.  Any help will be greatly appreciated.  I saw DCU here and a lot of folks getting lucky...I filled out the form a little while ago since I know I'm going to get something soon....one way or another.  We want to get a brand new car...and I think I may be able to get a better rate doing so.  The current 12% is a 2014, but was used.

Thanks!

---

  Here's what I would do -

 ReFi your current car so your DTI looks better.

 Then go car shopping.

 What's your score(s)?

[DaUsMsB]

thanks for the reply.  I have lived so long without cards, my DTI is really low.  I cant remember exactly on my scores but they varied pretty hard.  I think 605, 629, 659...somewhere around that range.  Plus I live in a really low cost of living area and make a decent amount of money now. Which I didnt when I filed.  So The only bills I have are minimal cards, rent, and 1 car note.  With my wife and I working, we make close to mid 100k/yr.

I tried to refi with NFCU in November and was not approved   I only had a secured card ($500) with NFCU since May when I got our current car.  Then when I got denied refinance with NFCU, immediately after I did get several credit cards to build credit.  All about at zero and probably around 10k total credit line.  Which I planned to pay off anything outstanding to zero before shopping.  Do you think I should try to ReFi through DCU?  Then go?  I can put more money down with them if that would help to get a better rate and then shop for another.

[Dj4Money]

 Go to Capital One or Road Loans for a re-fi. Their rates might not be as good as a credit union but it will be less than you currently pay. Your current scores will get you a nice reduction in interest, even with some negatives on it.

 You can try DCU but as I said their underwritting will be different. Capital One and Road Loans will be more lax because they are primarily sub-prime lenders but still give a decent rate for fair/average credit which is what you have.

[DaUsMsB]

hmm ok I havent checked road loans, but my current financing is through Cap 1 right now.  So I cant refinance through them according to them when I asked awhile back.

[Dj4Money]

 Road Loans, Auto Credit Express, Open Road, CarFinance.com 

[DaUsMsB]

Does any of them do a softpull? I did look in my records and I do see that I did try Road Loans...it wasnt much better at all for me at the time.  Which was about 6+ months ago, right after I got the car.  I know I didnt try the others yet.

[Dj4Money]

 No, I believe they all do a hard pull.

 Only your credit union that your a member may do a soft pull, similar to the one they take when you join.