I am looking into refinancing my car loan. It’s not that I can’t afford it, I just thought it would be nice to possibly make the same payments and pay it off sooner. Is that common? I needed to get a car in 2024 because my lease was up. It was cheaper to finance than get another lease.
I am paying 535 per month and I have 52 months left. My bank no longer does car refinancing. For anyone who has done this, was it worth it?
Car refinancing to pay off sooner
byu/NeverAft3r inpersonalfinance
Posted by NeverAft3r
6 Comments
What’s your interest rate?
Getting a lower interest rate is always good if you can
What are the details of your loan? Rate, monthly payment, balance?
This will only happen if (a) you get a lower interest rate this time, and (b) there are no fees at inception that’d eat up the benefit. Also, look up what the current value of your car is; if you owe more than that (sadly too common with long notes like these), it’s not likely you’ll find any reputable lender who wants to take that on.
It’s a math question what’s your current interest rate what’s the new interest rate?
I don’t think rates changed too much in the last 2 years. And getting a rate for a used car is most likely higher than new cars.
You’re usually better off paying more to your current loan to pay it off quicker than trying to refinance a car.
Why would you ask this without providing information on your current rate, expected rate and the fee to refinance?