# Refinancing our car! Is it really possible?



## borisdavenport (May 18, 2016)

I got this image from Facebook. I thought we can only refinance our mortgage. If anybody here has any experience with the refinancing a car, please share it. Some facts need time to get acceptance. I believe if it is a true fact it will be a great blessing for at least some of us.
regards 
Boris


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## Toyota Guy (May 18, 2016)

Banks and credit unions will refi a car loan anytime as long as credit requirements are in line. you apply and if accepted, the bank will send a payoff check to the lienholder and you are the proud owner of a new loan.


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## thedominican1 (Oct 10, 2015)

Just my opinion but refinancing is hardly a good thing.


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## Ben105 (Feb 27, 2016)

It depends. If your credit want that great at the start if the loan, but after a year or so it has improved, it could lower your interest rate considerably. But it depends though on each person's financial situation. When you start a loan over, your back to paying for just the interest at the beginning like any other loan.


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## Toyota Guy (May 18, 2016)

thedominican1 said:


> Just my opinion but refinancing is hardly a good thing.


If it makes sense and the interest rate is ok, fine. Each of us has different situations.


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## I_Like_Spam (May 10, 2015)

I guess you can refinance anything, but the expenses of closing a short term loan like a car note would usually not offer enough in savings for it to be worth it for most borrowers.

And of course, if you are talking about a car being used for ubering, it offers less value as collateral due to wear and tear, making the loan riskier for the lender and possibly higher interest rates to compensate.


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## Ben105 (Feb 27, 2016)

Going from a 16% interest rate (someone with risky credit) to an 8% interest rate after a 18 months to 24 months can be considerable savings over the life of the loan. Most take out loans of at least 4-5 years.


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## Fauxknight (Aug 12, 2014)

Ben105 said:


> It depends. If your credit want that great at the start if the loan, but after a year or so it has improved, it could lower your interest rate considerably. But it depends though on each person's financial situation.


Yes and yes.



> When you start a loan over, your back to paying for just the interest at the beginning like any other loan.


No. You pay the interest on the loan. Total dollars owed times interest rate divided by 12 is what you pay in interest each month.

If your new loan is at a lower interest rate then you will be paying less interest each month. Whether you pay off more principal or not depends on the new interest rate, the new minimum payments, and really more how much you actually decide to pay.

Such a statement doesn't apply to home mortgages either. I refinanced the other year at a lower rate over a shorter period of time. My monthly payment basically didn't change but since I'm paying less in interest that means more goes to the principal which is what results in the shorter period.


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## dirtylee (Sep 2, 2015)

Uber lease is $800 - $1k a month & some people are able to make it happen. Just work as much as they do & use the money to pay off the car. Also when it comes time to refi, it's easier if you make more money & have good positive equity in the vehicle {owe less on the orignal loan than the dealer trade in value}


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## amp man (Sep 26, 2014)

Good luck, even though I haven't missed a payment in 2 years, and 9 months, have a credit score of 720, and making good income, nobody will refinance an Uber commercial vehicle. I got screwed with a 24.9% Exeter Loan.
If anyone knows anything, please let me know.


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## TeleSki (Dec 4, 2014)

I had loan with Ally for a $19K loan when I bought my used Prius. Interest rate was 10.6%. I refied with PenFed Credit Union at 3.9% 2 years into it. It's going save me about $1500. My paymet went from 404 to to $234.


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## PHXTE (Jun 23, 2015)

thedominican1 said:


> Just my opinion but refinancing is hardly a good thing.


Not true.

If you're refinancing because you can't afford your payment and you're extending the term out, yeah, that's not a good thing. If you refinance to get a better interest rate, that's hardly a bad thing.

I refinanced my car with one of the big respected banks at a lower term and two percentage points lower than what the manufacturer offered. Saved me a lot of money over the life of the loan.


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## Michael-MS (Sep 4, 2015)

I refinanced mine to 1.9% a year ago. The fee was $29 for title. Make sure you ask and make sure they don't add on any other fees. It probably hurt my credit score but saved me $500 over the length of the loan. No hassle, took maybe an hour of my time.


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## ddelro219 (Aug 11, 2016)

why do you think credit unions and banks offer refinancing. they're the ones making money otherwise they'd never offer such a product. 

if you're smart about it and have the means, APR and interest doesn't matter one bit regardless if is 1.9% or 19%. why would anyone continue making car payments for 5 years? it makes absolutely no sense. get out of that car note as quickly as possible.


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## bsliv (Mar 1, 2016)

ddelro219 said:


> why do you think credit unions and banks offer refinancing. they're the ones making money otherwise they'd never offer such a product.
> 
> if you're smart about it and have the means, APR and interest doesn't matter one bit regardless if is 1.9% or 19%. why would anyone continue making car payments for 5 years? it makes absolutely no sense. get out of that car note as quickly as possible.


There are several reasons you'd want to finance a car, even if you have the means to pay it off. It should improve your credit rating. If the interest rate is less than the rate of inflation, it makes economic sense to keep the loan. If you can invest the same amount and achieve a greater interest rate than the loan.

But if you have a lot of money, excellent credit, and no worthwhile investments, pay it off.


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## steveK2016 (Jul 31, 2016)

TeleSki said:


> I had loan with Ally for a $19K loan when I bought my used Prius. Interest rate was 10.6%. I refied with PenFed Credit Union at 3.9% 2 years into it. It's going save me about $1500. My paymet went from 404 to to $234.


Dear lord $404 for a used Prius...



ddelro219 said:


> why do you think credit unions and banks offer refinancing. they're the ones making money otherwise they'd never offer such a product.
> 
> if you're smart about it and have the means, APR and interest doesn't matter one bit regardless if is 1.9% or 19%. why would anyone continue making car payments for 5 years? it makes absolutely no sense. get out of that car note as quickly as possible.


They're making money because they are getting the interest payments versus your old bank....

You'll rarely be able to get refinanced with the same bank...


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## Adieu (Feb 21, 2016)

TeleSki said:


> I had loan with Ally for a $19K loan when I bought my used Prius. Interest rate was 10.6%. I refied with PenFed Credit Union at 3.9% 2 years into it. It's going save me about $1500. My paymet went from 404 to to $234.


That's horrible.

Why are you buying a used uberX vehicle for $19k??????

If you wanted a hybrid for ~20k, you coulda got an Escalade Hybrid for XL/Select for that kinda cash lol


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