Question about Gap and Refi

[Anonymous]

I just recently financed my first car I had a couple of questions. The first is....I remember my mom saying when I was little that she had Gap insurance and that Gap insurance pays off the car for you as well as gives you additional funds to use as a downpaynent on a new car. I got gap through navy for $199.00 and read everything I could and couldn't find anything about that....so is that true? Or maybe she bought a different type of gap insurance back then?


Also (question #2) when I applied for Navy I applied for a used car loan (couldnt justify a payment on a new car right now) and the first place I applied was Navy. There lowest rate for 72 months, used was 5.29% I, never having a car loan before or any installement loans, was approved at 9.19%. I didn't think that was to bad considering it was my first installment loan and because most of my immediate family (my mom and sister) have rates between 16-20%. I wanted to apply for Capital One to see what they offered but because I didn't know to much about how their program worked and I kept reading how easy Navy's auto loan process was and how great Navy is in general I decided to just stay with Navy. Plus they offered gap for $199!! I thought I would keep the rate and get it paid off a lot faster, build a relationship with them and when THe time comes hopefully get a better rate with them next time. Plus the F&I said he is pretty sure Navy Refis their own loans. Now after everything is said and done, I'm not sure if they refi their own loans and I'm thinking about applying for Capital One now as a refi and see what they offer me.

Do you guys think I should apply to refi with Capital One just to see what they offer me or stay with a great place like Navy to build a relationship and just pay as much as I can towards it every month to save on interest. If I do refi with Cap One I will also lose my $199 Gap Insurance through Navy and would have to look elsewhere for it. If you think I should apply with Cap One should I try now to see what they offer or wait 6 months. My score has only gone up 10 points since I applied for Navy last month but I never applied to Cap one to see what they would even offer me since I know different lenders have different tiers and score requirements for each tier. I know saving money should be a priority but navy has been awesome to me as to everyone else and I just want to treat them as good as they have treated me so far

Thanks in Advance everyone and Happy Easter

[CH-7-Mission-Accomplished]

What is your EQ 04 FICO?  Why not apply DCU?   They are the kings of auto loans.

[Creditaddict]

once you refi you should be able to ask for a refund on the gap coverage from the auto loan you just paid off... they may pro-rate but you can get it back.

don't forget that if you are still close to value of car if you refi, you have to buy gap coverage again from the new place you refi with.

I would NOT bother trying with Capital One.

I would do DCU as suggested.

I would also get out of a 72 month loan and down to 60 or less!

[Anonymous]

Thanks guys! I'm not sure what my EQ 04 is. It only gives me 08-663 and 02-650 so I don't think I'm there yet but I will work on getting it up and definitely trying DCU. I'm not a member yet so I guess that's what I would do.

Getting out of a 72 month loan is something that I wanted to do. I wanted to get it down to 48 or 60 with a lower rate. I also want to keep the go insurance and was happy with the price that Navy offers for gap. I know cap one doesn't offer gap so I will definitely try with DCU should I wait to get my score up or try now. Thanks everyone again.