Auto Loan - Pay Off Early or Refinance.
#1
Auto Loan - Pay Off Early or Refinance.
Hi Guys,
Quick background - Bought the evo in 06/2009, put 10k down and financed the rest included taxes. I ended up paying taxes out of my own pocket and throwing the taxes from the loan back into the principal.
So i'm now down to 13k with having the car for only 6/mo.
Would it be better to do double payments and half the loan time or refinance to lower the rate and also take into account the lowered principal amount.
Its dropped about 5/6k since I purchased the car.
Let me know what you think please.
Thanks.
Quick background - Bought the evo in 06/2009, put 10k down and financed the rest included taxes. I ended up paying taxes out of my own pocket and throwing the taxes from the loan back into the principal.
So i'm now down to 13k with having the car for only 6/mo.
Would it be better to do double payments and half the loan time or refinance to lower the rate and also take into account the lowered principal amount.
Its dropped about 5/6k since I purchased the car.
Let me know what you think please.
Thanks.
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#8
Evolved Member
You are just asking to pay more in interest if you refinance. Cars don't appreciate like houses (used to), so getting a new loan is just going to make the bank happy, not you.
If you can afford to double up on payments, do that and pay the car off quicker. If not, just pay it out normally.
If you can afford to double up on payments, do that and pay the car off quicker. If not, just pay it out normally.
#11
yea if you can qualify for those rates then yes. Its only going to make a difference of about $20-40 in your payments though. Your better off just keeping the loan you have now and paying double or more of the monthly minimum. Unless you refinance at a lower interest rate and for a shorter loan term, maybe 12 months. Own you car in a year.
#12
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20 bucks a month is nearly 1000 over a 48 month loan. So if you were paying it off over the full time and could get a lower interest rate, it'd be worth it. I doubt that would happen though, so the best thing you can do is pay it off as fast as you can.