Refinancing a car
Moderator: Dictators in Training
Refinancing a car
You all seem to always have pretty good advice so here's another...I need to refinance my car into my name alone so that after my divorce is done, my husband's name won't be on it. I called GMAC with whom we financed it through and they said I need to shop around with some banks and try to get them to do it. We had a 3.9% and I'm worried I'll not get any better than that at a bank. Anyone know a good bank that does refinancing on cars in the state of Michigan, or have any connections? It's a 2006 Saturn Vue and I still owe roughly $25k on it. Thanks so much
You will not find a rate that low for a used car. Having said that, if your credit is good (which I assume it is) then you should be able to find something around 6.25% for 60 months. Your overall payments will be more in the end but monthly payment may see a slight drop depending on what you orginally purchased it at. Also, if you are changing the title, that may trigger another bout of sales tax unless there is a provision for couples where he gifts you his portion. Hopes this helps.
Re: Refinancing a car
Jennay wrote:You all seem to always have pretty good advice so here's another...I need to refinance my car into my name alone so that after my divorce is done, my husband's name won't be on it. I called GMAC with whom we financed it through and they said I need to shop around with some banks and try to get them to do it. We had a 3.9% and I'm worried I'll not get any better than that at a bank. Anyone know a good bank that does refinancing on cars in the state of Michigan, or have any connections? It's a 2006 Saturn Vue and I still owe roughly $25k on it. Thanks so much
My personal best experiences with rates are with Capital One and BOA. I'd suggest calling them and asking for rates, or hitting both their websites.
Its a shame you didn't do this 6 months ago, before rates went up twice, but you should be able to get something decent, if not 3.9%.
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mappatazee
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Anyone who pays cash for a car than they can finance for under 6% is a making a poor financial decision.
Explain this to me. Are you saying, rather than taking your $20k and paying cash for a car, assuming it would be a 5 yr loan @ 5% that you could guarantee you'd make more than 5% on that money by investing it instead?
Cause last I checked, CD's and money markets are around 4.4% and are the only things safe enough to call a guarantee. But I'm really no financial whiz. I'd like to hear your bit.
Molon Labe
leah wrote:oh sad, a divorce...sorry to hear about that jenny <3
Me too, shocked too.. always sounded like you guys were happy o.o
"I think you may be confusing government running amok with government doing stuff you don't like. See, you're in the minority now. It's supposed to taste like a shit taco." - Jon Stewart
Min, at a fixed rate under 6% the bank is financing the depreciation of the vehicle. Also, your cash is not converted into a fixed asset (or liability, depending on your school of thought). This is by far the best reason not to pay cash for items you can finance at very low rates.
Yes, if you are interested in a "risk free" investment you can take the 20k and buy 2yr US Treasury bonds at 4.5% but you would be much better off buying a S&P500 index mutual fund which historically returns 10%.
Yes, if you are interested in a "risk free" investment you can take the 20k and buy 2yr US Treasury bonds at 4.5% but you would be much better off buying a S&P500 index mutual fund which historically returns 10%.