Auto refinancing?

Question

i bought my car at the end of april 2008. i put down $7,000 and i owe $9000. my current interest rate 11.89%. my credit union's auto refinancing rates are 3.99%-7.99%. since i've only had my car for 3 months, is it possible to refinance? my original loan is through bank of america.

Answer 1

Auto finance is what I do for a living and with as much as you put down you should be in a equity position unless the dealer really took advantage of you.

If you are in a equity position and your credit is decent you should not have a problem refinancing through your credit union.

My question to you is if your a member of a credit union why did you not get pre-approved through them before you bought the vehicle in the first place?

Answer 2

The only thing I can see holding back refinancing is that your balance is a little lower. Lenders tend to not like to refinance less than 10K, but since you are a member of the CU now, they might be willing to.

Just go in and ask. There is no time restraint on refinancing.