Question

Refinancing car loans?  I keep reading mixed reviews on if it's worth it in the long run.Refinancing car loans? I keep reading mixed reviews on if it's worth it in the long run. Does anyone have any advice on this process if it was worth it for them in the end? Little background: Our current loan payment is around 440 a month. Weve been paying on it for about two years now this was our major purchase in rebuilding our credit, our interest is around 15 percent super High. And the total balance if paid in full is around 15, 000 left. We signed a 72 month loan. So we have roughly four years left of paying on the vehicle. Weve been debating on either keeping the current loan and possibly trading up, or just trying to refinance the current vehicle loan.  

Answer 1

If you can get a lower interest rate & the same number of months or fewer it’s worth it. If they extend out the months, even with a better interest rate, it may not be. We refinanced a vehicle but ours was a slightly different situation. We had a lot of equity in the truck (bc it holds value & we had a good rate to begin with) & we cashed out to debt consolidate. But the total picture made sense with interest & payments & that’s what you have to look at.  

Answer 2

We refinanced after 2 years. I think our rate went up a tiny bit (bc we had bought new) but our payment went from $630 to $360. It was worth it for us because my husband had a big job change (left the military) and we were just trying to survive.  

Answer 3

My understanding is refinancing has to do with interest rate. I was told there wasn't anything to do with my 3. 5 or something percent , so if yours is 15 I'd definitely ask about it! There is no harm in asking.  

Answer 4

Definitely look into refinancing. Credit unions usually offer the best rates.