Overhaulin'

Can you renegotiate the interest on a car loan?

We are having some finanical issues and would like to renegotiate our interest rate on our car loans. We've called all our credit card company's and they've been really nice and lowered our interst rates. I wasn't sure if you could do this with car loans as well.

Public Comments

1. Auto loans are usually locked in, but you could certainly call and ask them. One other option would be to refinance your loan somewhere else at a lower rate. One big advantage to this is if you do it around the same time your payment is due, your first payment won't be due for 30 days. It's like skipping a month's payment.
2. Yes, itr's called refi. Never borrow money an an object that depreciates. You might find that you owe more than it's worth (upside down in your loan). That means you are stuck.
3. Typically you cant renegotiate any loan that is fixed interest. When you signed the contract you agreed to a certain APR for a fixed amount of time. Credit cards are variable interest, and revolving debt. SO they are able to make those adjustments. Everyone talks about refinancing a car. A word of very strong caution about that. When you refinance the car, your rate probably will not go down. IN fact, it will go up. that is because you are taking out a loan on a car that is older than it was under the first APR. In other words, the first time around it was maybe 1 yr old and got a good rate. Now its 4 yrs old and more miles, higher rate. So - in that case, the only way to lower the payment is to go longer term on the remaining balance. You wind up paying longer, at a higher rate, in order to get a lower monthly note. You end up upside down longer, and paying longer. It is only something you should do under the most extreme situations. Cheers - Good Luck
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