Best was to refinace my loan.

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89grand

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I bought my truck 3 months ago. When I did, I had my own financing, but the dealer said if I financed through FCA, I'd get an additional $1000 discount off the price of the truck. Long story short, even at the FCA's 2 point higher interest rate, if I refinanced at 4 months (their claim I had to wait until I refinanced), I'd still save $800, and I verified this with a payment calculator.

Anyway, they wrote up the loan for 72 months even though I wanted to finance for 48, so I'm not waiting the 4 months, as I'm getting screwed by the length of the loan the longer I wait.

So with that said, what is the best website to get multiple offers for refinancing rates? I specifically want a 48 month loan.
 

mtofell

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I'm confused as to why you are "getting screwed" by the length of the loan? You can just pay it off quicker. It makes sense if the rate is 2 points higher but the length of the loan shouldn't matter.

Credit unions historically have the best rates. Honestly, the hardest part right now is being able to physically walk into a bank. I just financed a vehicle for my company through Chase and it was reasonably easy. I think the rate is around 5%. Things are so crazy with rates and the economy these days that it's hard to even know what is good and what is bad. I poked around a bit basically looking for what you are asking and didn't get a ton of great rates or offers. Essentially, it all just seemed the same. I could have got maybe a point better at the CU but it wasn't worth the hassle to open an account (required to get the best rate). Unless you're paying a terrible rate I'd probably just stay where you're at and pay it off more aggressively.
 
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89grand

89grand

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The length of the loan means I'm paying less principal on each payment, which means my initial calculated savings of $800 if I refinanced after 4 months is less because each payment has more interest. Precisely why they wrote the loan up for 72 months.

If I kept this current loan, and just say I paid it off in 72 months, I'd pay about $5500 in interest. With my preapproved financing, at 48 months, I'd have paid about $2200, so the $1000 off the price when I bought it, would end up costing me a few thousand rather than save money.

The sooner I refinance, the better off I'll be.
 

gofishn

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Call around to various local Banks and Credit Unions for their Rates.

YOU know what you are paying now, for interest on the 72 month loan.

Regarding the term, 48,60,72 months,...what does it matter?
IF the rate is 4.5% who gives a rat;s **** if the term is 72 month.

Use a Calculator to figure out how much you need to send, each and every month, to pay it off in 24 months, if you wish and then do so.
However, if you lose your Job, your kid needs Lawyer, Health Expenses, Aliens land from Mars and demand all your cash, whatever the hell happens,
you only owe the minimum monthly payment on a 72 month loan.

Divide the loan amount by two, if that is your wish but obligate yourself to as low a REQUIRED payment, as possible.

Keeping in mind, shorter loans tend to get better rates.
Half point or so, who cares?
Through some big payments at it, knock principle down and that half point ain't jack.
 

Wild one

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The length of the loan means I'm paying less principal on each payment, which means my initial calculated savings of $800 if I refinanced after 4 months is less because each payment has more interest. Precisely why they wrote the loan up for 72 months.

If I kept this current loan, and just say I paid it off in 72 months, I'd pay about $5500 in interest. With my preapproved financing, at 48 months, I'd have paid about $2200, so the $1000 off the price when I bought it, would end up costing me a few thousand rather than save money.

The sooner I refinance, the better off I'll be.

I don't about you guys down south,but up here you can over pay your loan payment monthly and specify you want the over payment put against the principle.
 

RedneckHippy

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Ask the current loan holder how to make overpayments towards principal only. Sometimes they are specific on how to do this. But pay whatever you can extra overtop of the minimum payment, as a principal only payment will eat up that loan very quickly. Whatever you do just make sure your payments go to principal and don’t push your minimum payments further out. It’s the same idea as when you make one extra mortgage payment a year towards principal and pay off your mortgage 10 years quicker on a 30 year loan. Check out NerdWallet auto finance calculators, it’s crazy the differences you can make with little extra payments towards principal only over time.
 

Gr8bawana

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I don't about you guys down south,but up here you can over pay your loan payment monthly and specify you want the over payment put against the principle.
^^^This^^^
Unless there is a pre-payment penalty on your loan you can pay as much as you want over your payment amount and designate it to be applied to the outstanding balance.
 

Dave2018

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This is easy. Go to bankrate.com

https://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx

enter the term you want, the starting balance and an interest rate you think you can qualify for, and run the numbers.

You can also pay off any car loans early with no-prepayment penality by simply entering the current balance and how long you want the loan to run for from today. (give it the interest rate too).It will solve for the monthly payment and the number of months. If you start sending in that amount the note will be retired in the number of months the calculator indicates.

No need to feel bound by the contracted length of the note.

Good luck!
 

OLEJOE

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I refinanced mine after a month. I got a 1.5% better rate, shorter term and lower payments. I also send over the payment amount every month. I didn’t like the way the dealer kept pinging my credit bureaus after they supposedly had it done. Maybe they thought it would drop my credit score so they could get more interest. When I refinanced the new lender asked if I wanted some extra money added to the note. I have never had that happen before. I got a very good deal on my truck.
 

That_CAT_Guy

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My original loan for my truck was through M&T Bank, and after only 4 months with them I was screwed 3 times. Once they erased a payment and almost made me late on it, another they claimed to have issues with the paying bank, and then the last straw was when they double charged me and caused an overdraft from the account I set the money aside in to pay them...and then stuck me with their mess up ("M&T takes no responsibility") from what I was told.

Went to where I bank (BB&T) and go refinanced and I'm paying almost $190 less a month on my notes
 

Docwagon1776

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I bought my truck 3 months ago. When I did, I had my own financing, but the dealer said if I financed through FCA, I'd get an additional $1000 discount off the price of the truck. Long story short, even at the FCA's 2 point higher interest rate, if I refinanced at 4 months (their claim I had to wait until I refinanced), I'd still save $800, and I verified this with a payment calculator.

You'll have to pay back the $1k if you refinance early. There's no way you're eating $1k in interest in 4 months. Don't look at the lifetime of the loan, look at the interest payment only on the first 4 payments.

I haven't seen a loan in 40 years with a pre-payment penalty. There's nothing that keeps you from paying on a 48 or 36 month schedule on a 72 month loan. I always financed for as long as possible that still got the lowest interest rate then paid it off in 24 months. The thought was if I lost my job or something my emergency fund would last longer on the lower mandatory payments but as long as times were good I could pay it off quickly.

If you're a veteran or military, Navy Federal has ridiculously low rates right now for refinances, well under 2%.
 

chrisbh17

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You'll have to pay back the $1k if you refinance early. There's no way you're eating $1k in interest in 4 months. Don't look at the lifetime of the loan, look at the interest payment only on the first 4 payments.

I haven't seen a loan in 40 years with a pre-payment penalty. There's nothing that keeps you from paying on a 48 or 36 month schedule on a 72 month loan. I always financed for as long as possible that still got the lowest interest rate then paid it off in 24 months. The thought was if I lost my job or something my emergency fund would last longer on the lower mandatory payments but as long as times were good I could pay it off quickly.

If you're a veteran or military, Navy Federal has ridiculously low rates right now for refinances, well under 2%.
You do not have to pay back the discount. How would they get the money back from you anyway?

I got 500 cash back for financing with FCA. I asked the finance department 3 times what the minimum requirements were (amount to finance and how long to keep the account open) and I got 3 different answers.

The reason they insist you can't pay it off quickly is that the dealer loses some of the FCA kickback for opening a new loan. But there is nothing stopping you from doing so. No prepayment penalty and once the account is closed it sure would be interesting to see them try and come after a (now former) customer to try and get the cashback discount back, especially considering it was already credited at sale time.

Sent from my Pixel 3 XL using Tapatalk
 

Razzman

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I don't have or use banks, only my credit union for everything for the last 30 years. Tech CU in Norcal, got a 2.99% rate on the RAM in 5 minutes via a phone call. They offered Chrysler Credit at the dealer for 6.99%, for someone with an 800+ credit score? uh no.
 

chrisbh17

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I don't have or use banks, only my credit union for everything for the last 30 years. Tech CU in Norcal, got a 2.99% rate on the RAM in 5 minutes via a phone call. They offered Chrysler Credit at the dealer for 6.99%, for someone with an 800+ credit score? uh no.

My dealer did the same to me. I even had to pay to unfreeze my credit so they could insult me with their "generous" 5% APR offer. All the while my credit union was handing out 2%.
 

huntergreen

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I refinanced mine after a month. I got a 1.5% better rate, shorter term and lower payments. I also send over the payment amount every month. I didn’t like the way the dealer kept pinging my credit bureaus after they supposedly had it done. Maybe they thought it would drop my credit score so they could get more interest. When I refinanced the new lender asked if I wanted some extra money added to the note. I have never had that happen before. I got a very good deal on my truck.


How can you tell how many times they pinged your credit.
 
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