Refinance new car

[amgerman22]

Hello . . . I purchased a 2006 Ford Taurus Oct of 2005. The reason being is because I was upside down in my 2004 Saturn Ion. I got divorced a year ago - so my credit is terrible, I am playing catchup. I am with the Consumer Credit Counseling service to pay my bills off.

Due to the bad credit, I had to get an interest rate of 17%. I was wondering if anyone new how I could refinance at a lower rate or if I could trade in this new vehicle and get a less expensive with lower monthly payments. Currently, I pay $470 monthly. But prefer to pay in the lower $300's. I am a single mother of 3 teenagers.

Any suggestions, would be greatly appreciated.

[rapidanian]

I'm sorry to say I am in a similar boat...I think we are stuck with what we've got. Its nearly impossible to get a refi on an upside down loan and you are probably like me in that you are REALLY upside down. I called a few different places and was told that they would do a refi with maybe a bit of upside downess, but not the extent that I have (+$7000). I can't come up with the cash to pay the loan down enough to refi. :(
It wouldn't hurt to make a few calls though because your situation may be different than mine. Good luck!

[radcojoe]

your best bet is to have a copy of your credit report when you go shopping or go shopping for your loan., if its current then nothgin new will shwo up when they pull credit, but this way you get an answer before they pull it and cause another entry on your report.

I did this when i did my refi on my house. i was able to shop 15 people but only have the 1 inquiery on my report.

[jrmoro]

Originally Posted by amgerman22

Hello . . . I purchased a 2006 Ford Taurus Oct of 2005. The reason being is because I was upside down in my 2004 Saturn Ion. I got divorced a year ago - so my credit is terrible, I am playing catchup. I am with the Consumer Credit Counseling service to pay my bills off.

Due to the bad credit, I had to get an interest rate of 17%. I was wondering if anyone new how I could refinance at a lower rate or if I could trade in this new vehicle and get a less expensive with lower monthly payments. Currently, I pay $470 monthly. But prefer to pay in the lower $300's. I am a single mother of 3 teenagers.

Any suggestions, would be greatly appreciated.

Dear Single Mother of three:

I absolutely cringe when I read or see good people in situations like yours.

Here's the scoop... If you paid cash, financed, or leased your new car, it is unfortunately way too early to try to do a refinance. It takes about 3 1/2 to 4 years to get in somewhat an equity position if you pay the normal minimums on your auto loan.

I know that there was something that made you trade out early and purchase the new car, but to try to roll more inequity into another vehicle and try to lower your payments would be nearly impossible right now... it's too soon.

So... what to do?????

1) Consider approaching your local lender that you do checking and savings with, or a local credit union and see if you could talk to a loan officer and explain your concerns. They may have the ability to find a way to make it work for you, but the real problem will be that they can typically only borrow you a percentage of the value of the car. Normally a max of 140% of the NADA retail price of the car. You can look up that value at NADA.com Be aware that you won't like what you see.

2) Suck it up...put the pride aside and approach a family member... Grand Parents, parents, sibling, etc and see if they can possibly use their clout or possible equity on their home and give you a much loaner interest rate and lower your payments big time!

3) You must accept the fact you bought a new car... you made a commitment and you need to move on. Get a part time job or consider finding other ways to create extra income to get from under this cloud of pressure that I know that you are feeling.

I wish you the best and I know that you can do it! J.R. ;)

[bouchard3775]

Originally Posted by radcojoe

your best bet is to have a copy of your credit report when you go shopping or go shopping for your loan., if its current then nothgin new will shwo up when they pull credit, but this way you get an answer before they pull it and cause another entry on your report.

I did this when i did my refi on my house. i was able to shop 15 people but only have the 1 inquiery on my report.

That is a fantastic idea I need to remember that!!!!