Can't afford my car payments, should i refinance??

Question

i purchsed my car last march for just over $18,000. i have about $13,550 left on my loan and 45 more months to pay it off. I'm paying $300 a month. When i got it, that was ok, but now with a new house and a baby on the way, my job just isn't helping me but i can't quit because i'm in a contact and with the way the market is, i can't afford to loose this amazing job. I'm not too familiar with the refinance process or how it works, but i dont want them to take it or have to file bankrupsy.....any advice???

thanks!

Answer 1

Get your FICO score from all three major credit companies.  If your credit is okay, then you will be able to refinance with little to no issues.  Try not to refinance for more than 3 years, because you will owe more than the car is worth.  I would suggest that you re-fi with a Credit Union because they have better rates and good quirks.

If your credit isn't so good, expect a harder time trying to get a loan and possibly a higher rate than what you have now.

Research first who you want to ask and once you have your various institutions gathered, ask for loans all at one time and see who will give you the best deal.  Applying all at once won't negatively effect your credit score as would applying over a three month span.

Good luck, I can feel your pain.

Answer 2

I don't think you'd find that the financing deal you'd get on a used car now would be better than what you have in place, but you can always ask a lender who does used car financing.

Answer 3

It depends. Are you caught up on your payments? Most finance companies require that you make at least 6 months of steady payments before you re-finance.  If this is the case-then-go for it!

Answer 4

How will refinancing help?  Do you expect to qualify for a much lower interest rate?  What is the value of the car compared to your loan balance?