If I refinance my car loan before making my first payment. Can a dealership or bank charge any kind of fee?
bradleighp asked:
My used car loan rate I got from the dealership I bought my used car from is 8.77%. Seems like I will be able to refinance with a 6.4% rate. With additional expenses of a 75 dollar application fee and a 50 dollar title transfer fee. Loan amount is for little over 11,000 dollars. Seems like it may be worth doing.
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My used car loan rate I got from the dealership I bought my used car from is 8.77%. Seems like I will be able to refinance with a 6.4% rate. With additional expenses of a 75 dollar application fee and a 50 dollar title transfer fee. Loan amount is for little over 11,000 dollars. Seems like it may be worth doing.
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Tags: Dollar, Loan Payment, Refinance Car
February 7th, 2009 at 10:03 pm
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The application fee seems a little unnecessary, but the title transfer fee is accurate. The dealership can’t charge you anything. But the bank who holds your loan right now might have some policies you want to check out. You need to make sure there are no pre-payment penalties. Those do exist sometimes just for cases like these where the current bank stands to gain nothing from you but time spent processing the loan.
I just depends on the bank but even with a fee it should be well worth it to get the better rate now rather than later.
Best of Luck!
February 11th, 2009 at 4:40 am
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Up2Drive.com is offering a posted refinance rate of 6.40% and Capital One has a lowest advertised rate of 6.95%. Neither of these online lenders charge an application fee or have prepayment penalties. You will likely have to pay the title transfer fee though. It’s best to apply with a couple of lenders and do the math to figure out who can save you the most money.