Question by Hope: Is it possible to refinance an auto loan that is at 19% if you have “bad” credit?
I want to buy a house with my husband but HE recently purchased a 2007 Dodge Magnum (only 8K miles) but it was at 19% interest rate. The payments are almost 0 per month. That payment will be hard to manage with a new mortgage. He’s only got a credit score of only 599 is it possible to refinance at a lower rate? The loan is only 3 months old and we’ve got to try to make it through the next 5 years some kind of way. Hopefully, with your help, it will be with a lower car payment. Any advice??
Best answer:
Answer by Galen B
I don’t know if he will improve his situation.
He needs to look at why his credit is bad. I would have been looking for a less expensive car with lower payments with an interest rate that high. You deserve a better car when you have earned it and can afford it. Meaning you have built good credit and are not skimping for money.
I worked with a guy that made considerably less than I did. He was complaining that he had to move to a cheaper apartment. His new Camaro payments were 0, my two year old Corolla payments were 0. I still have the Corolla after 9 years. A new car would cost me higher insurance rates, higher registration fees and car payment. The money I saved allows me to buy another car for cash if I want.
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If his credit is so bad, he probably should not have bought a car on borrowed money, especially a more expensive whose MSRP when new is $23,420-38,105, when you could have bought a more economy car – BUT what is done is done…
If he got the loan directly from the dealer, he almost CERTAINLY get can a better deal by refinancing on the open market. Search the Internet for deals. The dealer is the worst place to get an auto loan with the worst terms.