refinancing your car with a new loan, for example replacing an expensive 5 year 4.25% interest rate loan with a cheaper 3% interest rate loan after just one year will save you $400+ per month!
however, refinance too soon and you'll be carrying more debt than necessary — which is why it's best to wait until after your first or second year of ownership before considering the option. that way, if your credit doesn't improve as expected or another opportunity comes up, there are less consequences of refinancing early.
how long should you wait to refinance a car?
you should wait about 6 months.
this is because, typically, you'll be able to refinance at a new interest rate 5% lower than your current one if you've made on-time payments for the last 6 months.
does refinancing a car hurt you?
this will depend on the details of the agreement.
there are many variables that go into this question because refinancing a car could mean different things depending on what type of loan you're doing, whether you're an individual or a business, etcetera. i would first need to know more specifics about your goal in refinancing before i could answer this question with any authority. if you still don't have an idea what might work best for your situation, feel free to shoot me an email at ian@abagrilonlinefinanceservices.com and i'll be happy to help guide you through the process.
is it worth refinancing a car for 3%?
it depends on what you want to do with the money.
if your goal is to put the money in a bank account, then it would be better for you to save up or plan out how much extra each month for this purpose. however, refinancing might be appropriate if you need more funds available right away; many car loans allow consumers to borrow comparatively large amounts of money (upwards of $20,000) but only require making payments on 25% of that amount per month. this way too you will not only enjoy the 3% interest rate but also pay off your loan over time at a reduced cost; rates vary based on credit, but it's possible that closing one account could mean saving up-to-150
what is a good reason to refinance a car?
it depends on what you want to do with the money.
if your goal is to put the money in a bank account, then it would be better for you to save up or plan out how much extra each month for this purpose. however, refinancing might be appropriate if you need more funds available right away; many car loans allow consumers to borrow comparatively large amounts of money (upwards of $20,000) but only require making payments on 25% of that amount per month. this way too you will not only enjoy the 3% interest rate but also pay off your loan over time at a reduced cost; rates vary based on credit, but it's possible that closing one account could mean saving up-to-150
