Refinance car

[Anonymous]

OK hopefully someone can enlighten me here..... I logged onto The Lending Tree website and it states that I could save money on my car note. Well when I got my car almost 3 years ago my score they told me was 715 and the best apr they could get me is 6.99 .... well since then my score has dropped a lot .... I looked up on The Lending Tree... says I have a 650 but they said that I can refinance and get my apr at 2.5 saving me $136 monthly. How can that be true since my score is lower now than what it was when I first got my car???

[Anonymous]

I am guessing it would have mattered more what the tier rates where for the finance company at the time of purchase versus current tier rates at your refinance company. Rates are low currently.

[Anonymous]

I'm confused on how refinancing works.... can you actually get a decent low rate even if credit score is not excellent?

[Anonymous]

Short answer is yes but it is dependent upon the rate at the time you purchased and the rates your financial institution is offering now. I just refinanced from capital one to PenFed and went from 7.4 to 5.4. We also just financed a new Toyota this weekend for 0% financing so refinancing that would be a no go. We have high 600 to low 700.

If you bought at 11% and can refinance down to 7% your still winning. You have to make contact and run the numbers.

Sometimes it doesn't make sense. A few years ago we looked refinancing but would have added 6 months of payments to save $50.00 a month. It was a no go.

[Anonymous]

Can you get refinanced if you are upside down on the loan? .... owing more than car is worth...

[Anonymous]

Depends on who is doing the valueing. We owed more than the dealer thought our Armada was worth but exactly what Penfed felt KBB was so we refinanced.

[Anonymous]

Lending tree does not actually lend money. Lending tree operates as a referral service to banks that lend money.

You will not get 2.5% financing from a bank or credit union on a three year old car. Full stop. It won't happen. Even the best credit unions aren't offering rates that low on cars that age to prime credit profiles.

Continuing to work with lending tree seems to be a very good way to end up with a lot of pulls and no good results.

[Anonymous]

Very insightful yall. Thank you for the info.

[Anonymous]

Lending tree is pretty worthless in terms of getting the best rates.  It is best to go with a credit union directly, DCU and Penfed are great options and of course there are many great local credit unions.  The rate will depend on the age of the car, fico scores and length of the loan.  If your scores were 700 when you bought the car 3 years ago my guess is you financed through a dealer who marked up your interest a fair amount.

[Anonymous]

Yeah I'm going to shoot for December to try to refinance. Hopefully my score will be back up there again and I can talk to CU. My score droped several points due to high util and I just got 3 more major CC. I'm really wanting to dump this car, it keeps getting hit by other people! It's almost too evil to drive, so afraid. Someone going to really smash it in bad accident. Done had it get hit 3 times in 2.5 years.....just got it back from shop 1 week ago from the most recent hit.