Car payment?!?!?

Question

ok here it is i just bought a nissan 08 car. and im working and surely do can afford make a monthly payment, even though im going to college too and work part time but it cost like 450 monthly,

is it too dumb for me for making this decision?

and is there anyway to refinance the interest so it will be lower?

thanks!

Answer 1

It only makes since to refinance if you can make a big difference in your interest rate -- or extend the loan for a longer term (not a good idea).

Since your interest rate is determined by your credit score, and credit scores don't improve very fast, it's not likely that you will see any improvement in interest rates any time soon.

Answer 2

What you can do is make the payments for a year, and then refinance.  If you make the payments on time, they are generally really good about refinancing you to a lower APR.  But just make sure that you CAN afford the monthly payments, not just today or this year, but for the years in the future.  You may have student loans, or other loans besides this to think about.  But otherwise, you should be good to go.

Answer 3

Gonna say it, but that was a bad decision. Buying a brand new car as a part time worker is not the best thing for you. If you can't afford the payments, you are going to have to sell the car and pay back the difference in value.

Refinancing is an option, but seeing as you just bought the car, there is little that would bring the payment down. You can try refinancing at any point in the loan life, there is no set time period to refinance.

Answer 4

If you are a student, you should buy a used car. $450 is a lot for a part time worker. You can refinance, but not for about 6 months, you have to show that you make payments on time. I never buy a brand new car. I always buy a car that was previously leased (2 or 3 years old). Its still under warranty and it cost considerably less. My monthly payment is $220. If you have to ask whether it is a sound decision, then it probably isn't.