n8236

So the interest rates as of late has been down a lot and I'm wondering if it's possible to refinance my car.

Currently, I am financing about 35k from Toyota Motors at a rate of about 6.8%. My credit is decent, not excellent so I don't expect to get the lowest prime rates the banks or other lenders are giving out.

So what I want to know is, is it possible to refinance using another lender. Because 2-3% is a lot of money.

ReLexin

Wow fianancing 35K is a lot of loot!!!! Definitley try to refinance.

iialcii

iTrader: (3)

ya i would too....
BUt after owning the car for 4months. Im paying the sucker off. so sick of payments every month

Brian231

Yes, finance rates are a bit lower for the first fiscal quarter of 2008. Do some research with credit unions and banks, you should be able to get roughly 5%.

shaolin

iTrader: (2)

you can refinancing car loans?

passnu2

iTrader: (33)

You are not tied into Toyota Finance so if you can get something that is going to benefit you then move forward. Rates are all over right now and probably will be for a while. I was recently told that you can get 5% thru some of the credit unions. It all boils down to your credit as you have noted. So what you have now may be the best for the time and another way to view it is make some payments for a few months and so long you are on top of other things on your credit the score will go up. I used to work for a bank where I was a Wholesale AE to sell paper on the street and its amazing how much your score may have improved since you purchased.

I was considering purchasing out me lease and keep this car for my wife. Problem I see is in IL they charge you taxes and all that as if you are buying the car. I didnt pay taxes at all on the car and dont want to know.

Good luck on your search! If I can be of help or answer any questions PM me.

passnu2

iTrader: (33)

Yes, you are not tied into a car note! Well in IL there is nothing that binds you to it and I am sure its the same in other states. Mortgages tend to have a prepay penalty where you are tied into the loan or pay a fee to get out early. I have never heard of this in other states for cars but my primary focus in IL was mortgages so most of my background is in that. Just like I noted above its all about your credit. if your credit is good or better then when you purchased then its worth looking into with how our market is. Hope this helps!

rdgdawg

Very true... you're looking at 5-8 points improvement on a new loan (usually means another has been paid off). Rates will be volatile until at least summer ie going DOWN!

However, pre-owned cars don't carry as low an interest rate on financing regardless of credit score. Depends on how the bank classifies the car, but if you can get 5.99% or better, you now have an option. Just remember: even $20/month isn't worth it if your amount financed and total due are more. You'd have to drop your payments about $25/month if you've been in the car just THREE months if your payment is $500/month. Longer you're in the car, the bigger the drop to cover the added months to the new loan. Can you handle 48 months, or even 36? MUCH better choices.

Lastly, your car's value has dropped and the bank will only go KBB or KBB Black, not necessarily your full balance due, so you may even have to come out of pocket.

Looked at downsizing mine this week ( no way, keeping my baby 4-ever!) so these are all fresh points for me. Hope this helps... and good luck!

passnu2

iTrader: (33)

Yes, these are all very true and add to the mix. The 5% you can get on a used car and even less thru the credit unions. I have never used them myself as i always lease my cars. I think getting this rate on a used car thru a bank can be done but tuff with what they have said about there current credit. If i recall there is a place called Capital One that you can do it thru the intranet and refi your car for NEW car rates. Atleast they did in the past. The only way you will find out if you have anything worth moving forward with is doing the research to get your firm answers. Im looking into buying out my lease as i mentioned and the rates are 11% or greater in IL just becuase its a lease buy out and not a used car refi??? i have great credit and all they could ask for! But in my research i can get 5% or better thru a credit union but im still figuring out how this works and if i can get away from paying taxes on my car if i buy it out.

rdgdawg

Watch for hidden pre-payment penalties on leases... usually buried, and very notorious!!! Good luck on the lease. You should use the "you don't the car back, you WANT me to buy it" approach... if you get a decent rep to work with!!

kickin8

iTrader: (1)

check with credit union(s)....some of them are going ~5%

passnu2

iTrader: (33)

thanks i will have to look into it. i know the F&I director for the dealer and the owners of the dealer. im sure i will be okay but thank you for pointing that out. im about 14 mos into a 36 mos lease and its a wash to trade in or buy out at this time but its the taxes im having a hard time with. the union is looking into it and they say i dont have to pay them? dont see how that can be if i do it thru a bank i have to pay the taxes on it and its the state that requires this. taxes where assumed by the dealer with internal credits so what i dont see is how they can double tax you on a car, lets say that i did assume the taxes when i leased and not the dealer? i have to keep looking into it. i can always trade or have the dealer purchase from me then buy it back and have them give me the credit back and get it financed. im sure there is a way around it one way or another. i will let everyone know what i find out if i do for sure move forward.

sorry for the OT to the poster here!

n8236

Sry, i meant 25k.

passnu2

iTrader: (33)

i would take the time to look into it. here is the info i have on a credit union if you want to give them a try, never used them before but maybe they can help or answer some questions you may have

http://www.iaacu.org/

ijenz

hi guys! this may be a bit off the refinancing subject but.. since the interest rates were lowered the other day, would this mean that when if i finance 37k for the car, with 10k down payment, would my interest rates for the car payments be lower too?