I don't have any experience with refinancing, my loan is 11% with a little over 2 yrs to go on a 1998 car. I checked with my credit union last year, they won't finance more than bluebook (is that private sale value or trade-in??)I owe 4,100 looked up bb private sale value of 3,300. Is there a way to do this? Maybe a personal loan for the difference? Or maybe a secured loan for the total amount rather than a refinanced auto loan?
I'd really like to understand this before I try again.

If the difference is only $800, why not wait until you can save up the $800, sell the car and get out from under the loan? It might take a bit, but it sounds like a better idea to have a loan.

Different lenders have different methods of calculating the VALUE methods. The credit unions I am familiar with will use NADA RETAIL for the calcs.

For well qualified consumer they will loan 105-107$ + Tax/tag title. YOu may or may not owe more than that figure. You would need to either have the cash for the difference if any or another source for that money.

There may also be age limitations on the particular vehicle being considered that may affect the advance parameters.

Refinancing that small amount of money will make a negligible difference in the payment. Find a auto loan calculator in order to see the difference, you will be surprised.

Well I checked on a car loan calculator and I admit I thought it would be a bigger difference because the cu rate is 5.5%, works out to $20 less a month, $240 over 2 yrs. Of course, I'd have to see what rate they'd offer since it might be higher for a used car. I do want to keep the car. Maybe I should check how it works out if I pay a little more each month, maybe an additional payment from my tax refund. Wanted to refinance for the better rate and also to add another line to my credit reports. Thanks for the advice. I'll see what the NADA value is, probably not much difference.

If you're looking to lower your payment, see if your CU offers a 3 year loan at 5.5%

this will lower your monthly payment, but keep the APR lower. This will also allow you to throw more money to the principal if you pay extra and still allow you to pay it off in less than 2 years. This way, if you are tight one month, and you only have the $150 or so, you can pay the minimum, though you still try to pay the $240 you're accustomed to paying.


5.5% still beats 11%, and $20 bucks is $20 bucks. My CU will do up to 4 year loans for cars 98-00 at 100% of NADA retail.


Are you sure you did it right?

I owed 4K when I refi'd in June (I refi'd 2 years), went from 5.75 to 3.74, dropped only 2% and my payments went from 202.00 to 154.00.

cotterpin,
I did another check and at 4,000 for 2 yrs I pay $175 at 5% and it said $186 for my 11% only my payments are $199. I've been thinking the same as you, $20 is $20 and I could use that money elsewhere. Would help to have another loan with a good payment history and my CU said they're willing to work with me for approval. I hadn't thought of the 3 yr loan that you mentioned, that sounds good if they take extra payments. Would bring payments down to $120, which would be nice. I wasn't looking to lower payments especially, my goal was to pay less interest and add something positive to my credit reports.

Congrats on your own refin. sounds like you got a good deal. Thanks for the suggestions.

chris729