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This was my first new car purchase so please excuse my ignorance in advance. I know I didn't get the best rate due to a bankruptcy on my record.
I am paying $460 per month with 66 months remaining. ($30,360) The rate is 9%.
I have 2 refinancing offers...
1) 84 months @ 5.74% ... payment $346. ($29,064)
2) 72 months @ 4.74%... payment $382. ($27,504)
Other than the obvious savings of $78-$114 per month and $1300-$3000 over the life of the loan are there any advantages or disadvantages to doing this?
The car is a 2012 Dodge Charger that has a current retail value of around $18,000. I financed it shortly after my Ch 13 discharge... my FICO score has improved greatly over the last year and now I am exploring my options. I know I've already bent over I'm just seeing if I can improve the situation.
isnt that what you previously had? 6 payments made?
Yes that's correct. 72 months. I actually have 64 months left... just made payment #8. The numbers I listed were based off my credit report which hasn't updated yet.
I guess it's a no brainer but I still wanted to ask...
This was my first new car purchase so please excuse my ignorance in advance. I know I didn't get the best rate due to a bankruptcy on my record.
I am paying $460 per month with 66 months remaining. ($30,360) The rate is 9%.
I have 2 refinancing offers...
1) 84 months @ 5.74% ... payment $346. ($29,064)
2) 72 months @ 4.74%... payment $382. ($27,504)
Other than the obvious savings of $78-$114 per month and $1300-$3000 over the life of the loan are there any advantages or disadvantages to doing this?
The car is a 2012 Dodge Charger that has a current retail value of around $18,000. I financed it shortly after my Ch 13 discharge... my FICO score has improved greatly over the last year and now I am exploring my options. I know I've already bent over I'm just seeing if I can improve the situation.
Advice appreciated!
my calculations are that you are $5k upside down...I would consider a shorter term to get you even and then rethink what you want to do going forward. Stretching out the term is not going to get you even...and I doubt you're still going to love this care for the duration these terms...
my calculations are that you are $5k upside down...I would consider a shorter term to get you even and then rethink what you want to do going forward. Stretching out the term is not going to get you even...and I doubt you're still going to love this care for the duration these terms...
You're right. The current payoff is $23k. Like I said, I already bent over and I have accepted it as a learning experience.
Anyway, I love the car now... like you said though I might not in 5 years. I really don't ever see myself not liking it though. It's not like I'm driving a Yugo.
Would going with the 72 months @ $382 and continuing to pay the $460 or even $500 get me even?
I know I'm overpaying for the car and at this point if I can save money I might as well do it... right?
You're right. The current payoff is $23k. Like I said, I already bent over and I have accepted it as a learning experience.
Anyway, I love the car now... like you said though I might not in 5 years. I really don't ever see myself not liking it though. It's not like I'm driving a Yugo.
Would going with the 72 months @ $382 and continuing to pay the $460 or even $500 get me even?
I know I'm overpaying for the car and at this point if I can save money I might as well do it... right?
I would pay extra until even and by then your credit should be good enough to do whatever you'd like. If you are patient...you can make it up on the next deal. Hang in there...and nice job standing back up and knocking the dirt off.
I'd go for 72 months at 4.74%, and I'd keep paying the full $460 per month on it, which would would pay the loan off in 58 months and save you almost $700 in interest payments. That's only if you can swing the $460, of course. Good luck with it.
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