Refinancing

[Anonymous]

I recently got a car at the honda dealership, i was approved by honda financial. Now, My credit score is not the best...so of course my APR on the vehicle is really high. how high? 12.5% high and i'm paying 333.87 a month (which is do-able for me). I got the gap insurance and an extended warranty on the car, also, which made my payments go up a couple bucks. I have a few questions about refinancing:

Is refinancing recommended?

when would be the best time to refinance? a year from now possibly when my credit improves a little more?

how exactly does it work?

I got a good deal on the car, but once interest rates hit....i'm paying wayyyyy too much on a Honda Civic and i'd hate to pay 7K+ in interests on a car.

Now, before you all jump on me about thinking about the 7k in interest when i was buying the car or about simply buying a car cash, please understand my options were very limited.

[12njoy]

Stephanie

What is your current score?  It's best to have the installment loan at minimum 6-12 months before attempting a refinance given that you say your score is not the best.  I do understand about score and interest rate.  I just took an auto loan at 11.9% back in April 2013, but I will be paying it off in March 2014.

[KoolDev]

Remember too, the warranty you bought, you are financing.  Think about it, that was probably another 1300 or so added on.  If you have to, remember you can go back to the dealership and get that recinded and the remainder of the check will go to the finance company agains the principle of what you owe. 

Just an option.....  I just did mine and hope to refinance in a month or so.