I really want to lower my car payment is it possible to refinance?
Debbie V asked:
I have a 2005 Honda pilot with 30k miles on it
My payoff is 22k the truck is in good condition
I had the truck for 2 years still owe for 3 and a half years my interest rate is 7.9%
is it possible to lower my monthly payment
I have good credit
my monthly payment is $570
Has any one successively refinance
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I have a 2005 Honda pilot with 30k miles on it
My payoff is 22k the truck is in good condition
I had the truck for 2 years still owe for 3 and a half years my interest rate is 7.9%
is it possible to lower my monthly payment
I have good credit
my monthly payment is $570
Has any one successively refinance
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Tags: Car Payment, Honda, Honda Pilot
February 25th, 2009 at 11:51 pm
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run to mexico with it
February 26th, 2009 at 12:53 pm
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well, the only thing I have ever done, is go down to my local dealer, and trade the vehicle in for one that I could afford. If you trade in the vehicle, and get with a new dealer, or a different finance company, they may compete for your business, and apply the amount you owe on this vehicle to the new one, and then give you a longer period to pay it off, thus lowering your payment, but you would still have to pay the first vehicle off, it would just take longer. (at least I do know, it does depreciate in value)
February 27th, 2009 at 1:32 pm
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Yeah, in fact you could have refinanced it after 1 yr. Maybe even after owning it for 6 mo. I refinanced my truck a while ago and actually increased my payment by $50, but I paid it off 7 months earlier than my original contract. My rate went from 9% to 6.5%. I saved money because I didn’t pay so much interest.
February 27th, 2009 at 3:52 pm
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You probably can, and get lower payments for a longer time. But it could wind up costing you more. Don’t just look at the monthly payment, do the math and see if you are paying a lot more.
February 28th, 2009 at 1:27 pm
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yes, you can refinance. But it is not in your best interest. Right now you have a 7.9% rate. That is pretty decent. If you refinance, you will not lower hte rate. In fact, the rate will go up. Because you are looking for a USED car loan now. On a vehicle that is about to be 4 yrs old. So, a higher rate. The only way to lower the payment then, is to go longer term. You have been paying 2 yrs. Do you want to keep paying 4-5-6 more years? How much money DO you want to spend on this depreciating piece of property?
After 24 x 570 = $13,680. Then you want to make longer payments on 22k more. The rate will be higher, there is no disputing that. So lets say you get a 9.5% rate on 60 months (you have to go 60 to see any appreciable difference in payment) 60 x 462 = 27,720.
You will have been paying for SEVEN years
You will have paid a total of $41,400
In seven years that car will be worth about $3000 (educated guess).
You will have pushed over $38,000 into a hole.
If you keep paying on the current note, you will save interest. You will save your money. And you will be out from under the car faster. If you stretch this term out, be prepared to drive this car until 2013. It will take you that long to be in a position to get out from under it.
Think it over