I have a chance to refinance my auto loan next month. Right now the rate is an APR of 8%. Im wondering if this is good enough and if not where can I find a lower rate? Maybe I can save a thousand or two if I can find something cheaper.
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I have a chance to refinance my auto loan next month. Right now the rate is an APR of 8%. Im wondering if this is good enough and if not where can I find a lower rate? Maybe I can save a thousand or two if I can find something cheaper.
this totally depends on your credit rating and the 'equity' you have in the car that you wish to refi. With lenders seeing rapidly rising defaults in the 'subprime' sector, if your credit rating is shaky and/or if the amount you owe on this car is nearly equal to it's wholesale Kelley Blue Book value, the 8% loan that you currently have may be better than any refi rate you'll be able to find.
How much longer do you have to pay on the car? You really could probably save even more money if you could just add to your car payment something extra each month and pay it off early.
I bought a car in 2000 at 8% because I didn't have much of a credit story. I paid it off after 2 years instead of bothering with looking around for a potentially better rate. I think that was good for my credit, as I had other revolving credit too then.
Credit Unions usually will have a better rate than traditional banks.
If your credit is good you can look for 0% deals on new cars and roll over your current loan it.