Overhaulin'

Can you refinance your car loan?

I still owe $3,000 on my car orignally purchased for 10k the interest rate is 6.5% i know i can get a cheaper rate for the remaining $3,000. Do I go to any bank and refinance like a house or how does it work?

Public Comments

1. Sure, refi is no problem. Anyone who does car loans can refi yours. Question is, how much do you think you can save? 6.5% is pretty good for a $3000 loan. If you paid $250 per month now, you would have paid $3000 off in one year. Why not just double up on payments? Or add in another $100-200 and get it knocked out in a few months? Here's an example: $3000 loan - 4% interest rate - 36 mo term - $88.50 per month $3000 loan - 6.5% interest rate - 36 mo term - $92.00 per month Are you telling me $3.50 per month makes a big diff to you? Find another $250 per month in your budget and pay off the car loan. Get a part time job making $10 an hour and work 20 hours a week at it. That's $200 per week or $800 per month. You'll have the car paid off in 5 months tops.
2. Maybe. If your credit is still good and your car is worth more than $3000. But, how much are you really going to save ?? You are going to have to pay a title fee and perhaps an origination fee such that you are not likely to save much. Do the math and you might see its not worth fooling with for such a small amount of savings. The other thing is many lenders dont want to fool with small $3000 loans.