Is my APR too high and when should I refinance my car?

Question

I just bought a new 08 Nissan Altima Coupe and I'm paying $375 a month for 75 months. My APR is 7.39%. I didn't put a down payment. I have 5 years of credit history with a fair credit score when I purchased the car. This is my first time financing a car. I want to refinance for a lower rate and reduce it down to 4 years. My questions are:

Is my APR average or is it too high and if so, when should I refinance my car for a lower interest rate?

Answer 1

You went for a long term financing, 75 months is a long time to pay for a car.  If you have a good score and good credit, Your rate is a little high, but you went long term financing (75) months, the bank will always charge you a little higher of a rate when you go long term.

refinance?  you put no money down, you financed all of your taxes and fees and your car depreciated as soon as you drove it of off the lot...long story short, you are going to need some money down to refinance it.  Pay more on your car every month, make sure the difference goes towards the principle, when you pay it down $5000 then refinance.

Answer 2

For that long of a loan, the rate seems about right.  You can refinance whenever you want.  Go to a credit union, when you do, and you'll probably get 5-6% for 4-5 years.

Answer 3

How high or low depends on your credit score. So it difficult to say.

As for re-financing... they don't mostly re-finance cars.  That is a term used mostly for home loans.   But that is NOT to say you cannot fix it.  If you have a home with some equity, you might be able to get a home equity loan and pay off the car loan (assuming there's no prepayment penalties) - or you can get a personal loan and do the same thing.

The Home equity loan has a benefit of letting you write off the loan interest on your income tax - saving even more money.

Good Luck...

Answer 4

If this is your first time buying a car, then that rate is pretty good for a new car. Can it be lower, yes. But that depends on your entire credit outlook, not just the score.

My only thought is that you need to take it down to 4-5 years, not 75 months. That's a long time for a car, but probably the reason you got such a low payment. If you refinance for a shorter time period, you'll save $ on interest, but not on payments. They'll go up.

Read that as you'll save money but it won't seem like it month over month.

You should refinance as soon as possible to get the best deal. Call your local CU and a refinancing broker (see below) to hit all sides and get the best deal.

Answer 5

First by fair you mean 620+.  You have excellent rate and would not change as they must have had special from your bank as people with perfect credit will pay this apr or more for 75 months.  Longer you go after 5 years add a point usually.I do not think you will get abetter rate anywhere.  Even if you shorten term you , if car did not have special would get a higher rate as car isused number one as I said their nust have had a specil at a bank and you qualified.