Would you refi with this offer or wait?

[Anonymous]

A few months ago I was in a bad situation where I had been in a car accident 2 weeks after refinancing my car. I ended up with a 9.24% 84 month term when I financed the new car. My credit still hasn't rebounded really well (had to use my credit cards way to much after having to shell out couple thousand to pay off the balance still owned on the refi), but I am getting there, Experian has my FICO 8 at 639.

Surprisingly, I received an offer from Capital One for a refi on my new car loan (they actually had approved me orginally at the dealership, but with a higher interest rate, so I went with Ally). They are now offering me 72 months at 7.65%. This would raise my payment $27 a month, which really isn't bad at all and save me $3,014 over the life of the loan.

Should I just go ahead and do this or should I wait it out 6 months and see what they may offer me once my scores rebound even more? I like Capital One and would ideally want to stay with them for the remainder of the loan, so I'm worried if I take this offer, I would be stuck with it when my scores get even better and I think I could get a much lower interest rate.

What do you all think?

[Girlzilla88]

Honestly you should wait 6 months minimum to a year period before refinancing a vehicle....a year ideally for best results but it's to soon in my opinion to switch and with you being below 10% honestly it's not a big RUSH to get it that 2% difference if you were at 26% and they offered you the 7% I would say ok maybe go for it....but I would honestly wait it out.

[pinkandgrey]

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@Girlzilla88 wrote:

Honestly you should wait 6 months minimum to a year period before refinancing a vehicle....a year ideally for best results but it's to soon in my opinion to switch and with you being below 10% honestly it's not a big RUSH to get it that 2% difference if you were at 26% and they offered you the 7% I would say ok maybe go for it....but I would honestly wait it out.

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I would agree with this. I would hold out for at least that six months. You might get a better reduction in rate. 

[Anonymous]

Thank you for the advice. I do think I will go ahead and wait! I feel like I could get that interest rate to drop, and hopefully will be able to lower the term even further than 72 months!

[CV91915]

If I could rephrase your scenario, you are asking if you should immediately start saving 17% in interest costs every month while also shortening the term, both of which will get you out of debt sooner. 

[spiritcraft1]

Are you a member of any local CU's?  You may find a better rate yet.  Saving thousands of dollars in interest is ALWAYS a good idea, FICO scores be damned.