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Posted in Auto Loans
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Question By
NoraaLeachim

3 Contributions
7 People Helped
Should I refinance my auto loan?
I have an APR of 7.1%, with a balance of $19,500, and a payment of $350. I would be interested in a lower payment, and possibly a lower APR. Any advice on if I should do this, or a way to go about it?

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Top Contributor
5038 Contributions
1134 People Helped

Depending on what your credit is like, that doesn't sound like a terrible deal. To get a lower apr and lower payment I highly doubt that the payment would lower that much. If your main goal is to lower your payment you would probably have to add more months to the new loan than the months that you have left now and that in the long run will most likely cost you more.

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Has your credit significantly improved since getting the original loan? Do you owe less than what the car is worth? Is the year new enough and the mileage low enough to qualify for refinancing? These are all questions that you need to ask yourself. Take some time to read all that you can on refinancing, utilize a payment calculator to run some numbers.

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