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Author Topic: Refinance or Finance?  (Read 1658 times)

weeebell

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Refinance or Finance?
« on: January 24, 2008, 05:44:39 AM »
I I got my car about almost a year ago, May would make it a year. I received an offer in the mail from Capital One Auto Finance. For the past months I have been thinking about getting a NEW car. The current car I have is a 02 Nissan Sentra and I am paying $379 a month through the car dealership with an APR rate of 28.77%. (This is a USED car) all together the total I would have paid for the car is: $15,638.00 Should I go ahead and refinance the car with a lower rate or should I just get a new car and finance with Capital One????

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fastnicolasklin

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Refinance or Finance?
« Reply #1 on: January 25, 2008, 04:10:44 PM »
WOW, you are paying a crazy rate! If you want a new car then go ahead and get one but I wouldn?t suggest going through the dealer, check the banks for a loan the rate will probably be better.
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MrUnknowable

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Refinance or Finance?
« Reply #2 on: January 27, 2008, 02:36:49 AM »
That's the highest rate I have ever heard of. You need to refinance at a better rate...it will lower your payment drastically.



If the car is running well there is no need to trade. You obliviously are building or rebuilding your credit...more debt will not help you. Also, it does not make sense to increase your debt at high interest rates because you will be throwing away alot of money and surely have alot of negative equity in your car...most of the money you have paid so far is interest.



Good luck
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brakeguy

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Refinance or Finance?
« Reply #3 on: January 28, 2008, 01:02:54 PM »
Trading it in would make no sense...as stated before you owe way more than your car is worth. All you've paid so far is the interest on the loan. You would lose your shirt getting rid of this car. Just refinance...even a few points off that interest rate would save you a lot of money.
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jasonc

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Refinance or Finance?
« Reply #4 on: January 29, 2008, 11:28:59 PM »
depending on your new rate:  you would need to check it and also take your offer from capitol one to your local bank or credit union. Also on the new car sometimes the manufacturer has a better rate yet... 0-2%  but w/ the negative equity you may need to consider buy a 1 -2 year older preowned car in order to refinance back in that negative equity or you would have to come up w/ the down payment to cover it.  Because the lenders will generally only finance black book if your in the secondary market.  If your fico score has moved up and primary market may consider a little moor like 110% of sales price to help cover -equity.



your negative equity along w/ that rate!  omg i've never charged someone 28.77% what state are you in?  I thought there was a law on these rates being capped.  Makes you wonder who is really loaning you the money >>and you guessed it not really banks...



headed down the same road as the sub prime!  



definitely do what ever you can do do get out of the rate!!!



down payment talks so if you have any be prepared and it will help the primary lenders consider you more.  again it all depends on your current 6 month credit history and 2 year stability record and debt ratio...



please get a hybrid if you can go new you'll save money and our environment and also possible special tax rebates available for your state.
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