how soon can you refinance your car loan?
i just bought a new car a few days ago and got what i thought was a good interest rate from the dealership. it was my first time buying a car so unfortunately i wasn't sure 100% what i was doing. i shopped around and they offered me the best deal so i guess i got carried away (i know... i reallllly regret this already). i guess i didn't know how this stuff works and i said i wanted my loan to be with bank of america since they are my bank. anyway... i come to find out that my local credit union offers much better rates than what the dealership gave me. i haven't been able to talk to them yet since its the weekend and they are closed but i am really nervous about this and want some answers. so i have some questions:
when is the earliest i can refinance?
can i refinance directly with bank of america since i think the dealership added on to the interest rate to make more money off of me or would it be better to just go directly to the credit union?
has anyone ever had a situation where the dealership or the bank the dealership got the loan through would not LET them refinance with another bank?
i guess i am just afraid i will be locked into their rate and there's nothing i can do about it. i really don't want to talk to anyone i know about it because i don't want to hear about foolish and stupid i am because i already know that!! i should have done my homework and this is definitely a lesson learned for me.
the good news is that i can definitely afford to pay more than my monthly payment so i can pay it off more quickly and not have to get the higher interest rate if i was locked into it. i've just been upset that i feel like i was scammed.
i really appreciate your info because i've been quite upset about this and need some reassurance from real life experiences
Comments
You can refinance your car loan at any time you like. It's okay if the loan the dealership arranged for you goes through and you refinance after they fund. If you were to refinance and save 2% and were financing $20,000 a couple of days at the higher rate is only going to be a couple of dollars.
Regarding getting locked into the contract that you signed with the dealer, that is not allowed and you are free to refinance whenever. You should also not have to pay any prepayment penalties. I'd let the bank the dealer signed you with, it sounds like it's BofA, fund and then look to refinance. This will make it easier for your new lender to know where to send the money.
You'd need to check with BofA to see if they will allow you to refinance with them under the circumstances. They may not allow refinances on current BofA loans.
A credit union may be a good option, but there are many factors that will come into play such as age and miles of the vehicle, how many months you are financing for, loan to value, credit score, etc.
Hope this helps...
Bank Of America Auto Refinance
Contact your credit union on Monday morning and see if they can help you. In many instances, they can refinance your loan immediately. Give them a call and see what they have to say. Since B of A already has your loan, it is unlikely they will refinance it at a lower rate.
Hope this helps. Good luck!
Your father is wrong. The car will be a year older which means the book value will be lower. You will run into problems finding a lender to refinance for the full amount of the loan balance. Also, you probably won't have improved your credit enough in only one year to qualify for a better interest rate. Not to mention that your vehicle won't be classified as a "late model" but a "used" car -- the older the vehicle, the higher the interest rates.
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RE:
how soon can you refinance your car loan?
i just bought a new car a few days ago and got what i thought was a good interest rate from the dealership. it was my first time buying a car so unfortunately i wasn't sure 100% what i was doing. i shopped around and they offered me the best deal so i guess i got carried away (i know... i...
not a good idea, you lose thousands of dollars as it is now a used car.
Often, it's tempting to trade for another car even before you've finished paying off the car you're currently driving. One way that some car buyers do this is by rolling over the remaining payments on their current car into a new car loan or lease. While this isn't illegal, it is risky. Why? You'll end up owing more on the second car than it's worth. In the parlance of the automobile world, you'll be "upside down" on the vehicle. If it's totaled in an accident or if you decide down the road to trade it in, you'll end up writing out a big check to cover the remaining amount of the loan. Rule of thumb: Don't roll over an old car loan into a new one.
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Without going into your blog and just answering your question....you can refi as soon as you owe LESS then the car is worth AND as long as you qualify for a loan, period.
So, unless you have cold hard cash to add to this to erase your negative equity on the loan, you will be reminded of this lesson for quite a few months to come.