Daughter Refi Auto Loan Question

[rushingjr]

My 20yo college kid bought a car abt 3 mos ago. $6k at a high int rate (10%). How soon should she refi out of that loan and what's the best way to do it (CU, Cap1)? 

[Ron93]

Yes refinance now. Refinancing typically has higher rates than new car loans. Rate Genius (very good broker) has some of the best rates around 2.99%-4.2% for well qualified buyers. The whole cost for a refi from them is $220 and they do all the paperwork. I just did one with them two months ago and it was easy as pie. Got a rate of 3.49% and I have a Fico score of 810

[AllZero]

I would recommend joining a local credit union or online e.g. DCU.

[rushingjr]

DCU = Digital Federal CU to be sure?

[Ron93]

I checked a lot of the credit unions for a refi and their rates are not that good.

[AllZero]

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@rushingjr wrote:

DCU = Digital Federal CU to be sure?

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Yes, correct. The also offer 6.17% APY on savings up to $1,000.

[Anonymous]

The real question is will she even qualify for a refiance yet... Is the 10% due to her being a first time buyer? If she's a thin file with only 3 months of payment history you probably won't get a bank/credit union to pick her up just yet unless they also have a FTB program. If she's not a FTB, what was her score when they pulled? If she purchased from a dealer I'm sure they marked the rate up 2 points (2%) if financed through a bank.