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  1. 03-04-2010, 05:17 PM #1
    Mom2-3
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    Default Refi an auto loan

    Question for all you math nerds out there

    Our current auto loan is just sitting at $16,000, 7% for 59 more months. We can refi at $16,000, 4.7% for 60 months, but the cost is $295.00 We can cash flow the accounting cost so that no new debt is added to the loan. We just paid off our last credit card, so we will be paying extra to the loan. It seems like this would be a good deal. Any thoughts/suggestions?
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  2. 03-04-2010, 06:29 PM #2
    krbshappy71
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    I would just stay on track as you were. If the refi gives you a smaller monthly payment it might be tempting not to throw all the snowball amount towards the debt. But I'm just saying that because its what I did. I refinanced thinking it would take a load off my monthly payments but instead the money just went elsewhere. Throw the $295 towards the loan and keep plugging away.

    I am new at this, the guru Greebo should be around eventually with real math. hahaha!!
    LDR , 2 DD (one left the nest, one rarely home) More pets than money. More love than sense.

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  3. 03-04-2010, 06:33 PM #3
    craftypam
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    Where do you live that you have to pay to refinance a car loan? My ds just did and paid nothing to have it done. Just wondering.
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  4. 03-04-2010, 07:33 PM #4
    Greebo
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    Short answer - over the next 5 years it will save you about $1,000 minus the $250 up front so a net savings of about $750.

    Long answer - what were the original terms and what is the current payment?
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"

    Greebo    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
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    Three     Two mortgages, two one no car loans, one no credit cards, and a partridge in pear tree!
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  5. 03-04-2010, 10:42 PM #5
    Palooka
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    I wouldn't refi with that small interest rate difference. (especially if there is a fee for it?) What I have always done is pay more towards the principle every month if I could.

    Even paying 20 bucks extra can knock off some time of the loan. I've financed many....oh too many cars...and never paid the loan time that it said on paper. But that is just me.
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  6. 03-04-2010, 11:59 PM #6
    Mom2-3
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    I called another credit union. I can transfer the loan. The rate would be 5.4% without any fees. I love this credit union and should have originated the loan there. DH and I are going to sleep on it a couple days.

    Thanks for the help
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  7. 03-05-2010, 12:03 AM #7
    Mom2-3
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    Quote Originally Posted by craftypam View Post
    Where do you live that you have to pay to refinance a car loan? My ds just did and paid nothing to have it done. Just wondering.

    Very high cost of living area. I think everyone is hurting and fees are popping up everywhere. I had no idea you could refi an auto loan until last month. I'm new to all this, so I had to ask you all
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  8. 03-05-2010, 05:52 AM #8
    Greebo
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    Quote Originally Posted by Mom2-3 View Post
    I called another credit union. I can transfer the loan. The rate would be 5.4% without any fees. I love this credit union and should have originated the loan there. DH and I are going to sleep on it a couple days.

    Thanks for the help
    Take that deal. It's a CU you trust and the savings is close enough (factoring in the $250 fee) that it doesn't really matter.
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"

    Greebo    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
     WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!

    Three     Two mortgages, two one no car loans, one no credit cards, and a partridge in pear tree!
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  9. 03-05-2010, 11:43 AM #9
    Mom2-3
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    Quote Originally Posted by Greebo View Post
    Take that deal. It's a CU you trust and the savings is close enough (factoring in the $250 fee) that it doesn't really matter.

    That's what DH and I decided to do. I just don't like the $300 fee for pressing a button!! Now that the loan amount is close to what the car is worth, we are canceling GAP coverage and putting that amount towards the loan as well
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  10. 03-05-2010, 12:57 PM #10
    itlw8
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    with a lower rate can you refi for less months at the same payment. shorter term loans often have even lower rates.
    Meg

    cc debt free YEAH on to the mortage
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