Should I Refi?

[gregshin]

So I got my truck at 4.12 APR for 7 years thru chrylser with a FICO of 766 I feel like this way to high.

I got 7 years because i was able to get $2500 in rebates...i believe i can get 3% or lower from other banks...will chrysler try to get back their $2500 in rebates when i Refi thru someone else?

 

[14hemiexpress]

There might be a stipulation of some sort without reading the fine print it's hard to say but you probably have to make a payment and then check to see if there is any early pay off penalty. If there isn't go for it find another bank that's all they do is pay off the loan they don't buy it out. I think 3 is very obtainable with that credit score.

 

[mjd91]

Chrysler wanted 7% because they said I didn't have much history even though I had a great score.
I refinanced through a local bank (Randolph Brooks) for 1.65%.

 

[jlis]

Do the refi and find a lower rate! 7% is high but probably priced accordingly based on credit even with a great score like that. When did you get the truck?

 

[NYCruiser]

Do the refi and find a lower rate! 7% is high but probably priced accordingly based on credit even with a great score like that. When did you get the truck?

The OP is at 4.12% for 7 years, not 7%.

 

[tones2SS]

When I bought my RS3, I was 3.79% for seven years with a 786 credit score.
Less than a year later, I refinanced at 1.99%, almost half and saved about a hundred bucks a month.
Needless to say, I kept sending the same amount of money and a little more, from working overtime, and I now have the car paid off till January 2016.
But, yeah, I think the OP's rate is too high.

 

[joeg45]

If you bank with a credit union it would be best that's what I do and did I went front 4.something to 1.16 with my credit union

 

[magz]

Yes refi! You usually get a better rate for less years

 

[Ratket]

holly hell I made 1 payment to Chrysler then I refied at 1.9 for 6 years... you're payment will drop massively. what he said.. credit union.. easier to get loans and better rates.

 

[mtofell]

holly hell I made 1 payment to Chrysler then I refied at 1.9 for 6 years... you're payment will drop massively. what he said.. credit union.. easier to get loans and better rates.

OP - do this. Read the fine print of your contract to see if there is an early payoff penalty but I've never heard of one on an auto loan.

I have a similar credit score and ended up with 2.49 at the dealer and can't even remember the name of the bank (I set it up on auto bill-pay). I could have got 1.9 at the credit union but don't bank with them and it would have been a bit of a hassle.

4.12 isn't terrible but you can do better. You can likely keep the same payment and shave a few months off the loan. Or, lower the payment by $25 or so depending on the principle.

 

[cgeorgemo]

Chrysler required 4 months before there was no penalty for my rebates.


Sent from Skynet terminal 142a5

 

[jlis]

The OP is at 4.12% for 7 years, not 7%.

Whoops. That's what happens when you read things half asleep!

 

[dwysywd]

No sure what you paid, so I worked the numbers off $40,000 amount financed.

So $40k at 84 mo 4.12 is $550/mo. And at term is $6100 in interest. At 84mo and 1.99 is $510 and $2900 interest. Although most CU won't refinance at 84 (some will and invariably someone will post that they did). BUT almost all would do 72 mo at 1.99 refi and your payment goes to $590. But interest paid goes down to $2500 too.

Are you currently with Ally or Chrysler Capital (Santander)? And no, rebates CANNOT be tied to specific term and made to wait to keep them. They are what they are.

Call your CU. Ask them what they will do. Also, most CU charge $100 loan processing fee when you are refi a car. But if you can swing the pmt diff, that's a good option.


Sent from my bag phone...

 

[lilzilla2008]

My score was 680's when i went to get mine, financed through a bank for 3.09% for 75 months with zero down

 

[bobbo7915]

i refi'd my Chrysler capital loan before i made the first payment, i only had to wait until i got the loan account number. i did not have any issues with incentives or the extra $1000 off my dealer offered if i financed with chrysler capital...

 

[dkmesa]

why are people financing cars for 6-7 years? lol

 

[Iczer]

i refi'd my Chrysler capital loan before i made the first payment, i only had to wait until i got the loan account number. i did not have any issues with incentives or the extra $1000 off my dealer offered if i financed with chrysler capital...

Did the same thing here, no issues.

 

[clh1220]

I did 6 because that's what Chrysler offered with 0 %. I just pay extra every month so the pay off is in 54 months.

 

[Casper]

Most states prohibit early pay off fines. As far as Chrysler is concerned you're just paying them off early.

The trick is (unless you really need lower payments) not to lengthen the term of your loan with the new lender. You bought the truck on a 7 year loan (84 monthly payments) and have been paying for a number of months. Early payments in any loan are always structured as mostly interest and very little principle. So when you pay off with a new loan (or rather your new lender does the payoff), you still owe about what you started with. Setting yourself up with a new 84 month payment plan might save a little beer money each month, but costs you a lot more in the long run.
That's a mistake a lot of people make when they re-fi their home. They reset the term of their mortgage to 30 yrs!!! Their payments are smaller, but progress toward ownership, or at least a nest egg when you sell, is slowed way down.

 

[Jerry1984]

For me the jump from 6 to 7 years was about a point in interest. Mine is at 7 years and I beleive 3.99%. I plan to refi to a 6 year loan after I've paid at least 6 months so that my payment will stay about the same. With the money I put down I wanted to be at or under 400 a month. I'm at 395 so when I'm able to refi amount owed and get it under 400 is when I'll do it.