should i ask for a better car loan?

[Anonymous]

should i ask my current lender, or should i look for a better loan on the net? will this affect my credit? i am paying something like 8% right now. i just started building my credit history 2 yrs ago by getting secured cards 6 mos apart, and by financing a quad. one secured card was upgraded to a real card and they tripled my limit (now 5500$). ive been making on time payments leaving a zero balance on everything. myfico said i probably qualify for a refi w/ lower rate on the car. whats the best way to do this? thanks, e

[Anonymous]

You can as your current lender but keep in mind the loan origination fees and such.  Make sure you don't wind up paying more in fees that you save in interest.

[TheNewWorldMan]

It all depends on the new rate you would get, the loan fees, and (most importantly) your balance on the loan. Going from 8% to 6.7% on a balance of $15,000 is a much bigger deal than doing so on $7,000.

If you're interested in saving money, you're probably better off paying an extra $100 or even $50 a month on the car. That will likely save you more interest--especially if you're early-on in the course of the loan--than shaving a percentage point or so off the interest.