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refinancing my used car

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Young Grasshopper

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i bought a used mazda3 back i jan of 07. back then my credit was around 600ish and i got screwed on the interest rate. anyway my credit score has jumped up to 725 and im looking to refinance. ive read online that most places wont refinance your car if you owe 7500 or less. is this true? i owe about 6500 maybe left.
 
Young Grasshopper said:
i bought a used mazda3 back i jan of 07. back then my credit was around 600ish and i got screwed on the interest rate. anyway my credit score has jumped up to 725 and im looking to refinance. ive read online that most places wont refinance your car if you owe 7500 or less. is this true? i owe about 6500 maybe left.
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AFAIK, most places let you refinance up to the amount of the value of the car (NADA, KBB, etc) no matter how much you owe. At least that's what PenFed did when I refinanced with them back in May. For instance, let's assume your Mazda3 worth $ 9k, then the banks will let you refinance up to $ 9k. You can use $ 6.5k to pay off the car and keep $ 2.5k in your bank.
 
Just try your best to pay it off. Refinancing might get the payments down, but raise the total amount...or am I wrong?
 
Maybe the OP should just get a Personal Loan from the bank at an interest rate that is lower than his car's interest rate... There is also another problem though... Some loan companies calculate interest for the entire duration of the loan at the beginning of the loan and add it to the principal so that even if you pay off the loan early, you'll still have to pay all of that interest.
 
fleabag said:
Maybe the OP should just get a Personal Loan from the bank at an interest rate that is lower than his car's interest rate... There is also another problem though... Some loan companies calculate interest for the entire duration of the loan at the beginning of the loan and add it to the principal so that even if you pay off the loan early, you'll still have to pay all of that interest.
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Interest rates on personal unsecured loans are typically terrible compared to loans where you use the car as collateral. Also, I'd walk away from any loan that doesn't allow prepaying against the principal to save on interest over the life of the loan.
 
does anyone know what the best refinace company might be? i asked this because weson gave me some bs about only refinancing used autos where the loan only exceeds 7500.
 
fleabag said:
Maybe the OP should just get a Personal Loan from the bank at an interest rate that is lower than his car's interest rate... There is also another problem though... Some loan companies calculate interest for the entire duration of the loan at the beginning of the loan and add it to the principal so that even if you pay off the loan early, you'll still have to pay all of that interest.
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What is a "personal loan" really? My parents have a credit line but they are in another country. When I looked into a personal unsecured credit line some years ago it was basically a non-entity at my bank, regardless of credit. I guess the closest thing would have been a credit card.
 
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