refinance car first or get new one first?

[Lewiegie]

We purchased a new car about 11/2 yrs ago when we had bad credit scores. Our intent was to refinance later for a better rate, however, now our other car has kicked the bucket for the last time. To purchase a replacement car we will need to finance it (new or used). So my question is should we try refinancing the high interest loan to save money prior to trying the second one? Will that stop us from getting another loan?

[czygvtwkr]

Can you afford any car without financing? Refinancing a car, even at high interest rates, will not save you that much money and might actually end up costing you money.

The only way to know for sure is to do the math.

[JustStoppingBy]

Originally Posted by czygvtwkr

Can you afford any car without financing? Refinancing a car, even at high interest rates, will not save you that much money and might actually end up costing you money.

The only way to know for sure is to do the math.

Why would refinancing a high interest car loan cost you money? It's not like you're paying closing costs or fees that you would pay for a home loan.

[dave1959]

Originally Posted by Lewiegie

We purchased a new car about 11/2 yrs ago when we had bad credit scores. Our intent was to refinance later for a better rate, however, now our other car has kicked the bucket for the last time. To purchase a replacement car we will need to finance it (new or used). So my question is should we try refinancing the high interest loan to save money prior to trying the second one? Will that stop us from getting another loan?

Are you still paying for a car you bought 11/2 years ago ???????

[kom526]

Originally Posted by dave1959

Are you still paying for a car you bought 11/2 years ago ???????

I'm think 1.5 years ago. looks like they forgot to hit the space bar. 1 1/2.

[ProfMoneyWise]

"If you need a car and you have $5 saved then you buy a $5 car" - A Friends Grandfather

Figure this out with no financing. Break the cycle of debt especially on a hunk of metal on wheels.

What is owed on the car you recently purchased? What is it worth (i.e. what would it sell for fast)? Are you underwater or do you have room to maneuver?

Think "beater" for vehicles. A beater is transportation to/from job(s).

[ProfMoneyWise]

Financial Peace University at Saint John's Catholic Church - Hollywood, MD - daveramsey.com

For any interested come to the first class for free (Wednesday, Feb 6) and we'll spend the next 8 weeks showing you how to put yourself into a position where borrowing money and financial stress is a thing of your past.

[czygvtwkr]

Originally Posted by JustStoppingBy

Why would refinancing a high interest car loan cost you money? It's not like you're paying closing costs or fees that you would pay for a home loan.

I said might, I don't know if there are any fees or not with car refinancing for people with bad credit. From what I have seen most loans prey on people with bad credit for stuff like this. Also if the refinancing dragged out the loan farther that would make it where they end up paying more in the long run.

Even with a 5 year loan a decrease from 10% to 5% interest rate will only save about $50 a month on a $20k loan, but they said they have been paying a year and a half on it already.

[Chasey_Lane]

Originally Posted by Lewiegie

To purchase a replacement car we will need to finance it (new or used). So my question is should we try refinancing the high interest loan to save money prior to trying the second one? Will that stop us from getting another loan?

That's between you and the bank that will possibly finance you. Nobody on here will be able to give you the right answer.

[DEEKAYPEE8569]

Originally Posted by Lewiegie

We purchased a new car about 11/2 yrs ago when we had bad credit scores. Our intent was to refinance later for a better rate, however, now our other car has kicked the bucket for the last time. To purchase a replacement car we will need to finance it (new or used). So my question is should we try refinancing the high interest loan to save money prior to trying the second one? Will that stop us from getting another loan?

Talk to the folks that granted you the high interest loan first. If they are unwilling to re-finance you new-ish car, you might want to consider the want ads for "just something to run around town in."