Auto Refi After 1 Year

Anonymous · ‎09-22-2015

My question is, "is there any value in waiting to refinance a vehicle unitl it has hit one year?" I purchased a 2015 Jeep Wrangler on 11/30/15. And I'm going to refinance it.

I'm just wondering if there is a benefit for me score wise (and limiting a score drop) in waiting until the loan reaches a 1 year anniversary versus just doing it now?

I really want to not see my score suffer. Will the score bounce back to the same level once the original loan is paid off and the new loan shows up?

I don't know that much about Fico scores and cars. Thanks for the help.

Anonymous · ‎09-22-2015

Keep in mind that the Federal Reserve is going to raise interest rates by next year. That means auto rates will increase from 2.5% to 3.5-4% by next year. There is absolutely no advantage to waiting: interest rate or credit score wise. The worst thing that would happen is your score dropping 3-5 points due to a hard inquiry. Installment loans do not have a significant effect on your credit score.

Anonymous · ‎09-22-2015

Roadkill...from your profile are you telling me you have almost $700K in credit? Honestly you have $185 Amex Simply Cash? What's your income level?

Please explain to me how you amassed so much and over how much time.

Anonymous · ‎09-22-2015

If I'm going to apply for 2-3 new credit card in the next month (I haven't applied for a new account in a year), would it be better to refi my car first then apply for the new CCs or the other way around?

Dj4Money · ‎09-23-2015

@Anonymous wrote:
Roadkill...from your profile are you telling me you have almost $700K in credit? Honestly you have $185 Amex Simply Cash? What's your income level?

Please explain to me how you amassed so much and over how much time.

Off Topic but you can easily have more available credit than your annual income.

I just re-fi'ed my Hyundai from 18.23% to 4.49% with my credit union (Logix). So while my overall outlay over the term is reduced by $8,000, my payoff has actually increased from $15,093 to around $16,xxx.

This makes it harder to trade in, but I will be paying down more of the principal in a short time frame.

Dj4Money · ‎09-23-2015

@Anonymous wrote:
If I'm going to apply for 2-3 new credit card in the next month (I haven't applied for a new account in a year), would it be better to refi my car first then apply for the new CCs or the other way around?

Doesn't matter which way you do it.

Anonymous · ‎09-23-2015

what is the likelihood of the original lender lowering the APR if i ask? i'd really hate to refinance IF the original lender (NMAC) is willing to reduce the current rate.

Dj4Money · ‎09-23-2015

@Anonymous wrote:
what is the likelihood of the original lender lowering the APR if i ask? i'd really hate to refinance IF the original lender (NMAC) is willing to reduce the current rate.

Banks rarely re-fin their own loans for obvious reasons. Some do, usually CU's but most mainstream banks, no way jose. Go to a credit union, DCU is good if your EQ scores are decent, PenFed for EX, etc.

Anonymous · ‎09-23-2015

thanks! to the credit union i go!

Anonymous · ‎09-23-2015

I contacted mine, US Bank, and they actually said they can't because there are no local branches in my state. They can offer an original loan via the dealer, but not to me personally. Sounds very stupid and typical bureaucratic nonsense in the age of online banking.

I'll be going to my own credit union. But all I haev done with them is deposit $100 about 5-6 months ago. So I don't actually know how they are to deal with.