How many points should my interest rate drop after refinancing almost a year after?

[Descartes]

I was forced to do one of those high-interest purchases for my car, as I had little to no credit history prior to purchase. I have two credit cards, never been late (had one for about 6 mos, the other for about a year), and I've never been late on my car payment. I always pay way over the minimum payment, and always pay early. I make good money, have been on the job about a year and a half, and have been at my place of residence for over a year.

Now, should I go back to the company that is currently financing my vehicle and ask them to drop the interest rate, or should I go to another bank? My current interest rate is, lets just say, rather high . I would expect them to drop it at least 10 points, is that unreasonable?

 

[Parrotheader]

I have no idea if your rate would drop but given all that you've just said (always pay early, pay way over minimum required, make a good living) why not just pay the thing off in the next couple months??

 

[EagleKeeper]

Shooting for 10 points is not going to happen.

Ask around.

Any bank will be looking at the vehicle as used.

 

[Descartes]

<< I have no idea if your rate would drop but given all that you've just said (always pay early, pay way over minimum required, make a good living) why not just pay the thing off in the next couple months?? >>



Because that would be roughly 5k/month, and I don't have that much lying around right now



<< Any bank will be looking at the vehicle as used. >>



I know, I'm not asking for 5% here. I was thinking 10, maybe 12 percent?

 

[StageLeft]

How high is it? Are you on one of those 28% interest deals? :Q

EDIT: Don't be embarassed; I couldn't even get financed on a new car

 

[Nitemare]

depends on the loan value of the car and where you get it financed at..

a credit union is a good place

 

[Descartes]

<< How high is it? Are you on one of those 28% interest deals? >>



Ouch! I've never heard of an interest rate that high. I'm under 20 at least, but not by a lot :disgust:

Thing is, my credit score is also a lot higher than those I know who purchased a car w/ no problem. I figure I'll pay my dues this time, and I'll never have to do it again.

 

[Mister T]

Dude. STOP THE INSANITY.

Here is what to do.
Get a a couple platinum cards... they usually offer balance transfer rates of 0-1.9% for 6-12 months
depending on the car. Then transfer the car loan to the credit cards. After 6-12 months, transfer
remaining balance again.....

I have a Chase Platinum with a regular interest rate of 6.65% for purchases, which is sweet.

You are getting bent over if you are paying more than 12%...... I consider above 10% high....

 

[Mister T]

<<Thing is, my credit score is also a lot higher than those I know who purchased a car w/ no problem. I figure I'll pay my dues this time, and I'll never have to do it again.>>

As an employee of a bank (I am by the way) I love to hear that kind of statement because I will never get fired and my future stock options will allow me to retire quite happily.... But seriously, that is stupid. DO NO GIVE MONEY AWAY WHEN YOU DON'T HAVE TO

 

[Descartes]

<< As an employee of a bank (I am by the way) I love to hear that kind of statement because I will never get fired and my future stock options will allow me to retire quite happily.... But seriously, that is stupid. DO NO GIVE MONEY AWAY WHEN YOU DON'T HAVE TO >>



Man, I'm hearing you, but I don't see how I had a choice. When I bought my car, I was in the unfortunate position of needing a car, so I didn't have a lot of time to bargain. On top of that, I couldn't find financing, and after several days, I got this fairly high-interest loan from Wells Fargo. I accepted this as "paying my dues" knowing that I'd never be late on my payments, and that I'd never have to pay off a high-interest loan again.

I'm going to try to refinance sometime this week, I'm hoping I'll get a good deal.

 

[Mister T]

As a last resort, do the credit card plan I mentioned. In college I made over $500 over 6 months by borrowing free money and investing it in treasuries from credit card companies. It can be done. I love arbitrage.

good luck.



<<

<< As an employee of a bank (I am by the way) I love to hear that kind of statement because I will never get fired and my future stock options will allow me to retire quite happily.... But seriously, that is stupid. DO NO GIVE MONEY AWAY WHEN YOU DON'T HAVE TO >>



Man, I'm hearing you, but I don't see how I had a choice. When I bought my car, I was in the unfortunate position of needing a car, so I didn't have a lot of time to bargain. On top of that, I couldn't find financing, and after several days, I got this fairly high-interest loan from Wells Fargo. I accepted this as "paying my dues" knowing that I'd never be late on my payments, and that I'd never have to pay off a high-interest loan again.

I'm going to try to refinance sometime this week, I'm hoping I'll get a good deal. >>