Overhaulin'

Should I refinance my car loan right away?

Hi, I recently bought a new car and got a rebate for financing through the dealer Mazda American Credit. Of course I got a higher interest rate. The dealer told me that I have to make 4 payments before I refinance which I found out is false. But my question is should I refinance right away or should I wait since it is still a fairly new loan. Current Interest rate is 8.99 for 72 Months I have very good credit and could probably get sub 7% interest rate by refinancing. Any Ideas??

Public Comments

1. Just did the same thing with Toyota. Check the fine print on your financing contract, make sure there is no early termination (might be called pre-payment) penalty. If there is none, refinance as soon as possible. Otherwise weigh how much the penalty is versus interest saved and make your decision on that. My rate was 8.95 and went to 6.4 which made a difference of about $32 a month.
2. Usually the interest rate on a used car loan (which your car is now) is higher than on new car loans. Paying 2% extra on a car loan really isn't that much money