How long should you wait to refinance

[azfitz11]

Hello group, I just got my wife a new 2016 Mini Cooper today. It financed through Mini Cooper Finance. Sales person said thats all they offer. I don't know if he was lying or not, but ok. The interest rate was at 8.9%. Which knocked off my feet considering they said my score was at 719. My other two vehicles are at 3.9% and 4.9% through other lenders. When I asked why it was so high, sale person said that is the normal percentage for a score under 740. I went ahead with it because my wife was so in love with the Cooper. But I definitely don't like the interest rate. Is there a standard wait time before you can try other lenders to refinance? Any advise welcomed, thanks

[medicgrrl]

As long as there is no prepayment penalty you should be fine to refinance now.  Just make sure if you financed anything like gap insurance that to file to get a refund.

[Anonymous]

If you do a loan now it will still be financed as a new car.  Do it asap.  Go with Penfed, DCU or NFCU for the best rates and do your GAP through them.  

[Anonymous]

Also the dealer marked up your interest rate.  This is why you should always have a preapproval from a credit union in hand before you go to buy a car.  I have bought a car using dealer financing, let them mark up the interest so I could get a better sales price and the next day financed it with a credit union.  Pisses the dealer off but they shouldn't be marking up the interest on car loans and giving their customers a reason to go outside for a loan.

[Appleman]

With the current risk based lending, I think the ability to jack up interest rates is not as prevalent or legal. You should have received a disclosure with your paperwork on the score used etc.

I am however surprised that interest rate is that high. The interest on youir first two vehicles is reasonable but not rock bottom.

PenFed, if you qualify has the following rate for a new refinance

Refinance NEW Auto Loan
Vehicle's model year is 2017 or 2016. Worth a look with them. If they like you they may even refinance the other cars.

APR as low as* Term Loan Amount Approx. Pmt. ($25,000 Loan)

1.49% APR	36 months	$500 to $100,000	$710.51
1.99% APR	48 months	$7,500 to $100,000	$542.27
2.24% APR	60 months	$10,000 to $100,000	$440.82
2.74% APR	72 months	$15,000 to $100,000	$376.94

[azfitz11]

Thanks "workingfor850" and "Appleman" waiting to get the financing info from the lender and then heading to PENFED

[azfitz11]

Ok, so last night called PENFED, they did redo my wife's Mini Cooper at 4.1% . Couldn't believe dealer gave me an 8.9

[Anonymous]

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@azfitz11 wrote:
Ok, so last night called PENFED, they did redo my wife's Mini Cooper at 4.1% . Couldn't believe dealer gave me an 8.9

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Congrats, happy to hear that worked out.  It will save you thousands over the life of the loan.  The Mini dealer pulled some crap there.  Next time you can bring a preapproval to the table and if your in a generous mood let them try to beat it.  This is a great outcome.

[Appleman]

Thanks for sharing the win! Reducing the APR by half is great.

One cautionary tale, I live in a state with electronic titles. Really keep on top of their requests for signatures and information. Call immediately with any questions. I was elevated to a supervisor as they worked with me on issue getting the title (they don't get one) in a state with the electronic title. All worked out great in the end but took some extra vigilance on my end.

Also, PenFed makes it very easy to pay ahead and it advances your due date. I am currently paid through July which gives me options of skipping a paymnet if money is tight one month. The overall goal is to pay off the car early.