Auto Loan Refi Questions??

[Anonymous]

Ok so we bought a vehicle pre-discharge because my other car was totaled in a wreck May 1st, Had no other choice to buy another car before chapt 7 discharge. I am happy with the vehicle just not happy with the payment of $499 17.18% rate. I have made 2 or 3 payments on it so far and have been wanting to refinance it to get a lower payment. Anyway, I called around locally and spoke to a guy with a credit union that sounded promising until we went in and he did the numbers. I explained everything over the phone and he said he was sure they could refinance, anyway after he got the pay off amount he said beause of being upside down that we would have to pay around $6,000 down then they could refi. Is there anyplace we can refinace the car even being upside down? I would really like to get the payment lower and I have read about others getting refinanced on here in the same situation? Maybe someone that has been upside down can chime in ? Thanks

[Dj4Money]

 If your loan to value is over 120% you'll have a hard time re-finacing your car. I was able to re-fi mine after seven payments from 18.23% to 4.49% with my credit union that I have only been a member of since Oct of 2014.

 I've saved over $7,000 in overall interest charges and I shortern the term from 72 months to only 48.

 My car is 2015 Hyundai Accent Sport. I didn't have a BK, but I have a repo from 2009 and an inactive credit file from 2010 to 2014.

[Anonymous]

How do you figure out loan to value? Its a 2012 Nissan Rogue SV All Wheel Drive 35k miles

[Anonymous]

Sorry to be the one to tell you, but used cars do not depreciate that fast. If you are 6k upside down 3 months after buying a USED car, not only did you get taken advantage of on the loan, but also the price of the vehicle. The trade in value on that vehicle is about $14,100, so the retail should be about 16,000. I'm scared to ask what you paid for it.

Unfortunately, your only choices are to 1) put down 6k cash to refinance now or 2) wait it out and hope that you eventually hit a point where it is not so far upside down andd you can refinance then.... with it being so far upside down now, however, it may be a while before you reach that point.

[Anonymous]

I know the pay off is around 22,000 and I have only made 2 payments, i'll keep checking with different credit unions. I also have GAP insurance because my last car was totaled when another person hit me.

[Anonymous]

I know this may not help your immediate situation but I thought I'd still post. Gap insurance is great to have but I'd never buy it at the dealership. It was probably a couple grand. You can get gap insurance through most car insurance companies. Mine for example is less than $75 a year. Like I said, I know this doesn't help now but hopefully it will help you in the future.

[Anonymous]

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@Anonymous wrote:
I know this may not help your immediate situation but I thought I'd still post. Gap insurance is great to have but I'd never buy it at the dealership. It was probably a couple grand. You can get gap insurance through most car insurance companies. Mine for example is less than $75 a year. Like I said, I know this doesn't help now but hopefully it will help you in the future.

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It's does cause gap is a pro rated program. Meaning if OP want to cancel it he can and they will refund him the money. He probably didn't pay couple grand for it maybe 500-1000. OP if you still owe 22000 on it how much you bought car for being upside down that much no way to finance. Maybe should see if you able to come up with the 6000 and refi the rest at lower interest. What's your credit score now?