Overhaulin'

If I refinance my car loan before making my first payment. Can a dealership or bank charge any kind of fee?

My used car loan rate I got from the dealership I bought my used car from is 8.77%. Seems like I will be able to refinance with a 6.4% rate. With additional expenses of a 75 dollar application fee and a 50 dollar title transfer fee. Loan amount is for little over 11,000 dollars. Seems like it may be worth doing.

Public Comments

1. there would probably be an early payout fee from the first loan being as it was activated
2. Most people know that they can refinance their house, but fewer know that it's possible to refinance a car loan, too! It's become extremely popular in recent years. And it might seem like a silly idea, since most car loan terms are short--typically three to five years. If you got your car loan when rates were high, you may be able to get a lower rate now. Or perhaps, when you first obtained your car loan your credit was less-than-perfect. If you've managed to improve your credit score over the past year or so, you may now qualify for the lower rate. And a lower interest rate means less cost to you over time. Even dropping your rate by 1-2% can mean significant savings over the life of your loan. http://best-loans.awardspace.com/refinance-car-loan-bad-credit.htm Many car loan lenders that will refinance your loan don't charge any fees. That means no application fees, no fees for paying off your first loan early, and no other extra charges. So in many cases, refinancing your car loan won't cost you anything at all! And if you refinance for a lower rate, that's like saving money for free. Although most lenders wont charge you any fees to refinance your car loan, it is possible you'll have to pay to have the title of your car changed. So ask about any of these extra costs first to ensure the savings is worth the expense.
3. You should be able to refinance without paying any fees to the dealership or the bank that currently holds your note. You will make up the fees for application and title transfer in less than a year, so definitely refinance to get the lower rate. However, the $75 application fee sounds really steep. If you can find a credit union, they probably won't charge you an application fee, and their interest rates might be lower than 6.4%.