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Is it possible to refinance a car loan with one's current auto loan bank or institution?

May 04, 2007 by lightning_strikes | Posted in Credit

I currently have an auto loan with Bank of America. I am paying 9.7% APR. I'm considering refinancing just to get my interest rate lower.

In fall 05, I started it w/ a loan balance of ~$27K. In 1.5yrs, I've paid down the loan to a little under $15K. Currently the car has a trade-in value of ~$19,500 and a retail resale value of ~$23K(I looked this up on Kelly Blue Book's website). So I know that I'm not upside-down on my loan.

Do I have a good chance of refinancing? My credit is solid, but the only thing that I'm afraid might hinder me is the credit card balances that I currently have(although I've been paying them on time).

More importantly--Is there a chance Bank of America might be able to refinance my car loan for a lower rate? If they do this, is it possible for the loan acct.# to stay the same?(since it's within the same bank) Do banks sometimes refinance car loans that they already manage? And if I tried to refi with Bank of America, would it create a hard inquiry?
I asked about it at my credit union and I'd say it's a no-no. The credit union said they only determine int. rates based on what tier my credit score falls in, so my good loan-to-value ratio, length of loan, etc won't help me. They also said that I'd only qualify for a "used car" loan, and the rates are higher for those. But I will definitely try Bank of America...except I called 2X today and got disconnected each time after waiting a while. >:( Anyone have any specific car loan experience dealing with Bank of America?

Yes it is possible. Since you have paid the loan down so much your loan to value has changed greatly. This is one of the main things that lenders base rate on.

You should have no problem refinancing with your own bank, if you do? Try a credit union, they will always beat a bank on rate anyway.

And yes it will be a hard inquire.

Getting a car refinance loan in bankruptcy.?

Nov 13, 2008 by Barry F | Posted in Credit

How can a person get a refinance loan in bankruptcy? The car is in the shop and a new motor was installed. The fee owed is $3,500. The car is fixed now and just waiting at the shop.
The car is a Toyota Celica GT, and has a blue book value of a little over $4,000.
Since bankruptcy is in the picture, no bank will finance a loan.

I know there are quite a few details left out, but suggestions would be appreciated.
The husband works full time, and the wife is seeking employment, but has limited work experience and skills outside of motherhood.
Oh yeah, the car is fully paid off and title is in the husbands name.
These people live in Texas

You might be able to go to a title store. This would be a place that says that they will give you money by just bringing in your clear title. The problem with these places is the interest rate. They can charge anything they want and they usually do. Sometimes even 300%. So if it was me I would try and wait till the bankruptcy is discharged and then try a local credit union. Good Luck!!!

Car Refinance Question?

Oct 05, 2007 by videodronesmp | Posted in Credit

I want to refinance my car to try and get a lower interest rate and lower payments it is a 2006 Pontiac Grand Prix and I still owe about $20,000, the car on KBB.com shows a retail value of about $16,000. All of my payments have been made and were all paid on time. I probably have average credit. I have heard that I may not be able to because of how much more than its worth. Do you think I will have a problem with this? Also it doesn't matter to me if its the bank that the loan is already through or a different bank.

Auto finance is what I do for a living and the previous poster simply doe's not know what he is talking about. Auto lenders go off of N.A.D.A. trade value.

I don't know what model you have but a base 2006 with 20-k miles has a trade value of around $12,000.00 so you are looking at a LTV loan to value of 166%.

This is way out of line for all lenders. Most all stop at 125%.

Your best bet would be either to try and get a better rate with your current lender or try your own bank or credit union.

Quick question about trading in my car.... Please help me.?

May 23, 2008 by Streetsmart2004 | Posted in Buying & Selling

Me and my mother basically got screwed 3 years ago (i didnt know what i know now) when we financed through a bank (dont say their name) at 18.2% interest on an auto loan that doesnt mature for another 3 years. So, we're talking 2005-2011 for an auto loan at 18.2%. The car is a 2002 Ford Explorer XLT, which retailed at around $18,000 when we bought it. Now, I'm stuck paying 459 dollar monthly payments on a USED car that's 6 years old now. What are my options? we have about $17,000 or so dollars left to pay on the auto loan. I tried to go to a credit union and get my auto loan refinanced, but he told me they cant refinance it at more than what it's worth (my car is valued at 10 grand right now) My auto loan from the bank has a buyout of 13 grand right now. Should i just try to trade it in at the dealer and plead with them to refinance my loan too? I mean, the montly payments are 459, we send 500 dollars to them every month and it's on TIME every month. PLEASE SOMEONE HELP!!

Pay extra every month on the car until you get it paid down to a buyout amount that the credit union will refinance.
.

My car has 10k in negative equity, what to do?

Nov 16, 2008 by aishiteru1203 | Posted in Buying & Selling

I traded in my 2008 Scion TC for a Used 2004 Mini Cooper S. The Mini has always been my dream car so I went for it and ended up in 3k negative equity. With taxes, fees and negative equity It came out to about 10k more than I bargained for. 1st question: What can I do to get out or better this situation? 2nd question: The value of my car is 24000 and I owe 30000. Is there any bank crazy enough to refinance me for a 7 year loan? I really want to keep this car but I cant keep up with $500 payments. And I don't want to trade it in again because that is financial suicide for me. What to do?
and yes I admit this was a stupid stupid mistake.......

The only thing you can do now is bite the bullet and keep paying on the Mini. Cut out everything that is not essential to your survival so you can make your payments. The worst thing you could do is have your car repo'd. That will destroy your credit for 7 to 10 years. You won't be able to finance a toaster during that time.

Your negative equity is far too much for any lender to help you. All lenders have stopped making 72 month car loans because we're in a recession. Money is extremely tight and getting long term credit is impossible. And unfortunately, you're stuck with the Mini for another 3 years before you'll be able to get out from under it.

Dire news. But it's the truth as to what you're facing.

1. Which type of debt is the least attractive for a consumer? (1 point)?

Dec 22, 2008 by mysteryman | Posted in Personal Finance

1. Which type of debt is the least attractive for a consumer? (1 point)
unsecured debt
secured debt
mortgage debt
lease debt
2. Secured debt means a lender gives you money in exchange for what?
(1 point)
collateral
credit report
principal
interest
3. When an asset, such as a car, decreases in value over time what is it called? (1 point)
financing
equity
leasing
depreciation
4. When you lease a car, you build equity while making monthly payments. (1 point)
True
False
5. If the bank decides you’ve defaulted on a car loan, what will they do? (1 point)
foreclose on the car
refinance the car
repossess the car
depreciate the car
6. Why do lenders often charge more interest for a car loan than a home loan? (1 point)
because you could crash the car
the car could be stolen during the loan
cars can be moved to annother location
all of the above
7. Secured debt allows you to refinance the loan to get money (equity) out in the event of an emergency. (1 point)
True
False
8. Credit cards are considered unsecured debt. (1 point)
True
False
9. If your credit score goes down significantly and you miss a car or home loan payment what could the bank do? (1 point)
foreclose on your home
require the car loan to be paid-in-full
increase interest rates
all of the above
none of the above
10. When you buy an off-lease used car, you can buy the same warranties you would get if you purchased the car new. (1 point)
True
False

Can I cancel my extended warranty?.?

Oct 18, 2008 by Juan Soluna | Posted in Insurance

I bought a new car and was dumb to buy the extended warranty. I went back to cancel the extended warranty and was told the finance person, if i canceled it I would have to pay the value of it since they had bought down my interest rate. She said she would take down 500$ off the extended warranty if I promise i wouldn't refinance and made sign a paper saying so. It may understaning if you cancel the extended warranty bank financing the loan will be reinmbursed by the warranty company. So why is the dealer saying I would have to pay them for the warranty.? can someone help please!

You shouldn't be speaking to dealer about cancelling. They are trying to screw you.

Call the warranty company and cancel with them. They will send you a refund.

I thought these banks that got the bailout money are suppose to help the public?

Jan 02, 2009 by Rodney G | Posted in Renting & Real Estate

5 years ago we bought our town home for 185k. before we bought our home I was 30 days late once on my car loan, for that i got thrown in a ARM sub prime loan. well 6 months ago it adjusted to 9.99% with a 550 payment hike. in the mix of this my wife lost here job. I called up my bank to get it refinanced. They said credit is fine and ordered a appraisal, they found the property was valued at 155k, we owe 162k, then they told me i would have to come up with 27k at closing and the new loan would be 139k with a 5.50% apr. Naturally i don't have 27k laying around. Then he said there is nothing they can do, I asked him about the government money. They told me its not for homeowners its for lending business money. I just would like some advice on this, going broke with this payment. I posted this last week and found some very rude answers to this matter such as you made your bed now lay in it. Please don't waste your time with commits like this, we both work hard, always lived within our means.
Again i am not looking at getting smeared by blaming the lenders. IF these damn banks punished me for being late once on my car payment i would not be in this situation. Its like a big game. I know folks who delibertly skip out of there obligations in the past where viewed as the same credit worthyness.

The bailout money is so that the banks can loan out the money. In your case, the money will go into the 139k loan and also to pay off your old loan. If the bank didn't have the money to loan you, they would have said "We won't bother checking your credit, because we don't have the money to loan you."

The problem is that due to the housing slump, the value of your home dropped. The bank isn't obligated to pay the depreciated value (27k) of your house.

You might want to consider buying a smaller and cheaper house. With the housing slump, you can probably get a good deal. Then, you can either rent it out, or move in and either sell your old house or, in the worst case, abandon the house.

I think the best bet would be to call the bank and work out an agreement. They would rather get some money, instead of repo a house which will just sit there empty for months. Explain the situation with your wife, and see if you can get a forebearance, or have the monthly payments dropped for a certain number of months (e.g., 6 months so that your wife can locate another job).

How should I go about paying off our debt to save the most money on interest?

Mar 17, 2008 by luv_the_red_head | Posted in Personal Finance

We have about $3,000 in credit card debt. Our interest rates vary from 12% to 22%. Our car loan is terrible. We pay 24% interest on our car note, and owe over $5000 more than the book value. We owe 27,000 on our home, which is appraised at $31,000. What would be the smartest way to pay off our debt? Our mortgage is not through a bank. Instead, the previous owners hold the note, and we make the payments directly to them. Should we refinance our home with a bank or mortgage company? Right now, we are paying 6% interest on our home. Advice would be greatly greatly appreciated!!

It sounds like you wouldn't qualify to refi. with a bank or mortgage company since your interest rates are so high on other things. You can do this 2 or 3 ways depending on your goals. First way- list debts smallest to largest regardless of rate. Start paying minimum payments on all but the smallest debt. Throw every bit of extra money at the smallest till its paid. Then start on the 2nd smallest & keep going from that. This way you get them paid off quickly & feel that you are making quicker progress.
Second way list them from highest rate to lowest & pay off the higher rates first. This way actually saves money in the long run. I would leave the mortgage alone at 6% fixed. Once your other debt is paid you can pay extra on principal. Most mortgage companies don't want to mess with a $27,000.00 loan.

Would you be more confident about the economy if?

Oct 13, 2008 by Poohcat1 | Posted in Elections

the following proposal was made by one of the candidates and by Bush?
1. Instead of bailing out the big banks, let them fail. They sowed the seed and they must reap the harvest.
2. Instead of sending the money to those big banks, how about sending the money to our smaller home town or city banks so they can loan it out to mainstreet businesses and other citizens for expansion, hiring new employees, buying a car, a new TV buying a house, home renovation, farm input expenses like tractors, trucks etc.These loans would be based on good loan practices with adequate collaterole but would be given at a low rate of interest. No sub prime loans.
3. A law would also be put into effect that all people who are caught in the sub prime problem could have their homes refinanced at the original low rate and have the length of their mortgage moved out so their monthly payments would be manageable. They would still be responsible for the entire amount that they originally borrowed but would have much longer to pay it off. They made their decision and like any good American should take responsibility for their debt...good or not. For the empty houses or for those houses that do not take the extended loan option, turn them over to the realtors and let them sell them at the current value.

Finally, let wall street come back by itself. If main street is happy, they will start to invest quickly to take advantage of the lower prices.

That would be my ideal candidate. I don't see that person this time around. However, Obama is the closest.