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Refinance car loan?

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Anonymous
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Refinance car loan?

Any experiences with refinancing a car loan. I have a 14.5% 6 year loan with Wachovia. FICO scores are EX 686, TU 659, EQ 663
 
Thanks!
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Anonymous
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Re: Refinance car loan?

I have never been real big on refinancing a car loan or any loan for that matter, it just prolongs the loan and hides how much you are actually paying by spreading the payments out over a longer time. 14% does seem rather high and and 72 months is a very long time to pay on a car, but unless you are getting a BIG drop in interest rate AND a shorter term, I probably would just bite the bullet and continue with the current loan. If you are able, pay more per month to reduce your pay back time; paying off early effectively reduces your interest rate as well.

Message Edited by xopher26 on 09-30-2008 07:08 AM
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Anonymous
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Re: Refinance car loan?

I would do it if you can. The costs are low and you can keep the same term so you're not extending the loan. Even if you only save a few hundred, that's a few hundred you didn't have before. Just check for pre-payment penalties and be aware that if you're upside down, you'll probably have a tough time getting a loan from anyone unless you can bring some money to the table.

I found the best rates for a used car at the credit unions so you might start there. If you're worried about getting approved, see if you can print off your reports and meet with someone from the CU to talk about it before they pull your scores.
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