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Refinance Car Loan?

i have a friend who bought a 2006 hyundai sonata and has paid his car note on time for all most 2 years and he tried to refinance the car through his bank wells fargo and they denied him what do they bank look at when u refinance your car loan. he wants to refinance his car loans do anybody any banks in caa that will refinance

Public Comments

1. Try Collins Community Credit Union. Or other Credit Unions. You might try his Insurance company, they usually add Gap Insurance for nothing, at least State Farm does.
2. A local credit union is a great idea, it worked for me. Try this site to find you local credit union: http://www.creditunion.coop/cu_locator/index.html Good Luck
3. Refinancing a car loan is usually not beneficial because, unlike long-term home mortgages, small changes in interest rates don't make a significant difference in payment amount. The only way that refinancing can reduce payment amount is by getting an even longer-term loan. However, this adds to total finance costs and keeps the lender upside down for almost the entire loan term, making it troublesome and costly to sell or trade before the term is over. In short, refinancing a car loan is rarely beneficial and not very practical. If your friend really wants to do it, even though not a good idea, go to any bank or loan company that offers used-car loans. Use the new loan to pay off the old loan. If he is already upside down, the bank may not want to loan him the full amount of his old loan, however. Banks don't want to loan more than the car is actually worth, which may have been the problem at Wells Fargo.
4. Your best bet to refinance a car loan would be through a credit union. Even then, It can be tough if your original interest rate was high due to no credit or bad credit. Because of the high interest rate and the depreciation on the Hyundai, you probably have "negative equity" in your vehicle. What this means is you owe more money on the car than the car is worth on the open market. So, if the bank ever had to repo the vehicle they would surely loss money. Which banks don't like to do.
5. AGE, MILEAGE, CONDITION, CREDIT HISTORY, RESALE VALUE AND MAINTENANCE RECORDS. THEY ARE TRYING TO PROTECT THEIR INVESTMENT WHEN THEY REFINANCE.
6. Go to SearchAutoReviews.com, and search with "Refinance Car Loan", you should get some experts tips. http://searchautoreviews.com/results.html?cx=006616979543893323550%3A3aew_r12l8e&cof=FORID%3A10&q=Refinance+Car+Loan&sa=Search+reviews Good luck!
7. Lenders will look at a lot of things, including "debt-to-income", "loan-to-value", miles on car, retail value, credit, and job history. Depending on what rate he has now, he might be better off to not refinance. If he was already rejected once, then there is a possibility his new rate will be higher than what he is paying now, which means he will pay more interest. If you would tell us what his current rate is, we can give you more info.