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Questions about refinancing

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zoe505
Valued Member

Questions about refinancing

I have a 2008 GMC 4wd sierra truck  that I purchased used in 2014. When I purchased it they gave me a 10.84% interest rate. My credit has since improved quite a bit.

 

My questions are ...can I refinance my truck and get a lower interest rate? Are there places that will refinance a vehicle that is 8 years old and has over 121,000 miles? I still owe approx. $11,000 on the vehicle but I want to lower my monthly payment since I am getting ready to start Grad school and really need to lower expenses. 

 

Any recommendations on refinance companies? Just researching all my options. 

 

Thanks

 

 

 

Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: Questions about refinancing

Unfortunately, you're probably well out of the parameters of any lender who'd give you a decent rate on a refi.

 

Most lenders who do refi limit it to 5-6 years old and/or under 100,000 miles.

The general lifespan (for depreciation/accounting purposes) of a fixed asset like a car is 5 years, and it is generally considered that any personal vehicle (as opposed to a commercial truck) has a lifespan of 120,000 miles.  This is the figure used to calculate damages or value when you're dealing with vehicles in lemon law suits or other claims like that.  

 

Unfortunately, yours is well outside those limits.

You may find someone willing to refi it, but I would expect that to be a not-so-reputable lender who may have all kinds of fantastic fees and interest rates.  I feel for you, because grad school is demanding both financially and time-wise, but I don't think a basic refi for the purposes of lowering your interest is really in the cards.

Message 2 of 5
incognitony
Frequent Contributor

Re: Questions about refinancing

Check a credit union. I got a loan on a 2007 SUV with 102k with 6.49 for 48 months and my score was 624.

Message 3 of 5
RonM21
Valued Contributor

Re: Questions about refinancing

You may be beyond the age/miles preferred by most lenders for the refinancing. I refinanced a while ago and couldn't remember seeing anything over 7 years/100K But I do think you may have options available through a credit union as the above poster stated.


Total CL: $321.7kUTL: 2%AAoA: 7.0yrsBaddies: 0Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping

BoA-55k | NFCU-45k | AMEX-42k | DISC-40.6k | PENFED-38.4k | LOWES-35k | ALLIANT-25k | CITI-15.7k | BARCLAYS-15k | CHASE-10k

Message 4 of 5
Anonymous
Not applicable

Re: Questions about refinancing


@incognitony wrote:

Check a credit union. I got a loan on a 2007 SUV with 102k with 6.49 for 48 months and my score was 624.


This^^^^.... Check the Credit Unions as they might have options for you...

Message 5 of 5
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