Overhaulin'

Refinance car loan for $3,500?

I have a car loan now with Wachovia, but when I signed a loan it wasn't a fixed interest rate. At the time I signed the contract I was unaware of that. It has been 5 years and my payment has stayed the same. I received a notice the other day saying that my car payment was going up an extra $55 per month. I only have 12 more payments and $3,500 left to pay. I have called several banks and most of their minimum loan is for $5,000 or more. I don't have any credit cards, nor would I like to get any more (I shredded them and trying to pay them all off), and I cannot afford an extra $55 per month. Does anyone know of a bank that will refinance my car for only $3,500?

Public Comments

1. Auto finance is what I do for a living and your best bet will be your own local bank or credit union. $3,500.00 is well below the minimums of all major lenders.
2. There is very little chance of you getting anyone to refi a 3500k loan because the amount it too low. It just is not going to happen. Our minimum amount to finance is $5000 and that is if the car has a ton of value, more cars do not. So, just pay the 12 months and be done with it. If you do find someone who will refi 3500, they are going to take you to the cleaners in some way, BE CAREFUL!
3. Ok here is where you need to learn the term: PREPAYMENT PENALTY. They did not give you that initial low rate, just so you could later refinance and let them be used. Refinancing will make your payments lower, but will increase your loan cost, since there will be penalties. Thank goodness you only have a car, and not a HOUSE like most people going nuts these days. Try your best to cut $55 from your spending each month. Get rid of your cell phone if you have one; and ask for money for christmas.
4. That doesn't sound right. That would imply that they jacked up the rate more than 20% over what it already was! I suspect something else is going on here. Did you let your insurance lapse? If so, they would have bought some for you and added it to your payments, which would be a better explanation for such a large increase.
5. Ask what the buyout price is..perhaps you can buy it outright?