Loans- anyone ever done this?

iVillage Member
Registered: 09-10-2008
Loans- anyone ever done this?
4
Fri, 09-12-2008 - 11:31pm

Has anyone ever refinanced a car loan? I am thinking about doing this to lower my monthly note, but I am weary because I worry that I will need a new car before the loan is paid off, if I refinance.

I puchased it in 2006 new. I travel ALOT to and from work and also for work. I average about 100 miles per day for work. I already have 75000 miles and the car is just 2 years old. My note is a few dollars shy of $400 a month, but I am thinking about refinancing about 11 K and doing it for 4 years. Otherwise I would have it paid off after 3. If I could get my note a little lower, I could get credit card debt paid down. Not sure what to do and am curious if anyone did this. It is only a year and one of my cons to doing it is that if I dont refinance, I would have it paid in full in 3 years and then I could fund all the car note money towards cc debt, but that cant happen for another 4 years.

Thanks for any suggestions !

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iVillage Member
Registered: 06-18-2004
Sat, 09-13-2008 - 1:30am

I refinanced one of my cars.

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Sat, 09-13-2008 - 10:53am
I refinanced my car in order to take advantage of a much, much better interest rate.

All my best,
Danni

iVillage Member
Registered: 01-25-2006
Sat, 09-13-2008 - 12:47pm

You may not be able to refinance the car at this point. Have you checked to see what it is worth? That kind of mileage is going to seriously accelerate your depreciation and a lender is not going to be able to lend you more than it is worth. If you are upside down right now, I don't think this plan will work. I wouldn't really recommend it regardless. You are just going to keep getting more and more upside down and then if you have a wreck or something you are really going to be in a world of hurt. Are the 100 miles during your work day or is that your commute? If it is during your work day, are you being reimbursed mileage? Is there a possibility that they might provide a company car?

Peg

iVillage Member
Registered: 02-01-2008
Sat, 09-13-2008 - 6:34pm
I refinanced only once and that was because I was getting a legal separation. We each refinanced our cars because both original loans were joint. A happy consequence was that the interest rate had gone down and my new payment was a bit lower. A lower interest rate is the only reason I'd ever refinance a car loan again. You don't want to be upside-down on a car loan.
Mary Jo