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Posted in Auto Loans
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Question By
missowlglass

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I can't refinance my car loan because it's upside down??
My credit score has gone up a lot (100 pts or so) since I bought my car. I applied for refinancing through one of the offers on here, and they just told me over the phone that nobody will refinance me because the ratio of what my car is worth vs. how much I owe, is too high. It's worth $5000-6000 and I owe 11k. This is partially because I have put a lot of miles on it due to my commute, but also because my interest rate is over 18% so my payments aren't reducing that very quickly. I am positive I can get a much lower rate now that my score is 670. Is it true nobody will work with me? Should I trade in my car (i really don't want to do that)? My current lender doesn't refinance existing loans either.

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Could I refinance my car in a year?

Three months ago i bought a 2019 toyota corolla with 0$ down and no credit using my mom (good credit) as a cosigner. the thing is i didnt know very much about car loans or anything so i ended up in a loan with over 17% interest for 72mo. another thing is im already piling up miles in my car (7000miles in 3mo, probably 30000 a year) and it already has dent. i know i made a bad decision, but i can pay 468$ what im scared about is being this much underwater. I had no credit back then but im very responsible so now my credit is growing strong, do you think a lender would refinance my car? Im really scared of being underwater and paying that much interest, im literally in a crisis. I have a GAP insurance. i need answers because im really scared and desperate, please answer

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If nothing is seriously wrong with your car; just make extra payments and pay it off early. If you trade it in; you'd be back in the same boat, with a more expensive car to absorb the depreciation of your current car. You have pretty good credit (score wise) so don't act hasty and ruin your credit reputation. Weather the storm use some self restraints for a greater reward in the future.

Reply by
missowlglass

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Yeah I agree buying a new car seems like the worst thing to do. I just want to save as much as possible long term. Do you think I would save a comparable amount by paying it off early vs refinancing for a lower rate? I'm new to car loans so I'm still trying to figure all of this out and I feel like I'm being ripped off currently.

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