Orion_240

well, aren't they going to give you the highest price they can when you refinance?

How does that work?

Tylus

no. most banks will only refinance what you owe...and they usually want at least $1,000 throw in as well. they also typically cut 1-2 years off the term.



So if you owed say $20,000 on a 5yr loan @ 7% interest, the bank would refinance the loan for $19,000 on a 4y loan @ 5-8% interest.


at no time will a Bank give you additional Negative Equity when refinancing. Most banks have a standard 90% ruling. They will only finance 90% of the fair market value for a vehicle. This protects them from a buyer getting in too deep and defaulting, and it also protects you since it prevents you from spending insane amounts of $$$ for very little car.

Tylus

btw, refinancing a Car loan is usually not a good idea.


You need to have been in that car for AT LEAST 3 YEARS. I say 3 yrs because that is about how long it will take you for the vehicle value to be = to what you actually owe.

Then when you refinance, you are only financing about 1/2 of the original cost. So that $1-2,000 down, and the 3-4 yr term isn't so hurtful. It will help you pay off the vehicle...but at the same time, protect the Banks interests.


Your payments will go down overall since you are financing a smaller total $$$. Not because of the Refinancing itself.

Murphdog

The financing is based on the amount owed, not the value.

In my case, I simply refinanced it with my same credit union. I needed the payments to go down as I'm trying to budget the purchase of a house (and it's monthly payments). My (new) auto loan was originally 4.65%. It was reclassified as a used car loan and is now 5.4%, which adds about $2800 by the time you pay it off. The term of the loan was my choice, I chose the same one as the original loan. Most likely I will pay it off ahead of time and that $2800 will not even be relevant, but as I have to submit certain info to the mortgage lender, I'd like to make things look as though I've got the money to make my monthly mortgage payments.

Riptide

+1

Deal in the OP is a terrible price. I paid 21750 for my 06 well over a year ago and it had 4500 miles on it.

Those guys are looking for a sucker.

03_GT_Reaper

I just saw this on CL. Not sure if its what your looking for(its manual)
http://spokane.craigslist.org/ctd/1385007215.html

03_GT_Reaper

Price might be slightly high but you may talk them down 1k or 2. Seems like what you are looking for. Plus low miles!
http://www.justmustangcars.com/searc...ails=558050279

Widowmaker[X]

+2

I got my '06 Vert two months ago for 23.5k and it had 7k miles, loaded of course...