How can I reduce my monthly car payment? Need some sound advice.?

Question

I have a 2006 Acura RSX in excellent condition. I have approximately $15,000 remaining on the loan. My monthly payments are $355. I have been hesitant to refinance as there seems to be many refinance scams out there. The worth of my vehicle may be a bit less than what I owe. I am really desparate to lower my monthly payments. Any quality advice would be greatly appreciated. Thanks!

Answer 1

Take out a bank loan and pay off those payments and your bank loan should be about $200 a month for every 10k you take out, so on a 15k loan you should be paying about $250 a month.   Something to look into at your local bank and loan centers.

Answer 2

The only way to reduce your monthly payment (without selling the car) is to find another way to borrow the money. That means getting a secured or unsecured loan.

Secured loans use collateral (the car in this case) to make as a promise to pay the loan. So if you don't pay them back, they take the car. Problem solved.

Unsecured loans don't have collateral. It's just like borrowing money from friends or family. But from a financial institution that usually means a very high interest rate. They have to make up the risk somehow. And that means more money from your pocket in the long run.

I know there are a lot of refinance scams in this world, but it is the best option. Secured loans look best on your credit and compared to unsecured loans, save you so much more money.

So when refinancing keep these things in mind:

1. Always make sure its a simple interest loan with no prepayment penalty.

2. GAP insurance isn't always needed, but nice to have especially in the beginning when you are upside down on a loan.

3. Make sure that you don't extend the terms (number of months) of your loan. Unless your ONLY goal is to lower your payments. Sometimes that is the only way, but will cost you more in the long run.

4. Go to 2 places, a local credit union (they are different than banks and usually have lower rates) and an auto refinance broker. That'll hit a load of places without hitting your credit by visiting every bank in town and online (and saves time).

5. Never apply at a website that doesn't have an address and phone number listed on the website. That's a clear scam.

Answer 3

Refinance at your local credit union, they are great banks.

Answer 4

stop paying for it. then you reduced your car payment by 100%. Ohh, but the it MIGHT get repoed?