Anyone doing Carlisle this spring? P&S and/or Import & Kit Nationals?

dmhenderson

Don't ever refinance an auto loan unless you somehow got a bum deal up-front. You'll end up owing more in the long run 99.999% of the time.

I have done it a grand total of once and that was because I was supposed to move to Germany and my lender wouldn't let me take the car overseas so I had to switch to USAA (who would). I still took a horrendous beating and the company I worked for paid the difference.

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aniceh

True, but if the justification is lowering payments, might as well call a spade a spade.

dmhenderson

Lowering payments by extending the loan 1+ years. You are letting the lender take your future income for free and they don't even have to lift a finger.

Don't ever, ever do this unless you're going to like...lose your car.

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aniceh

I agree 100%, I'm just trying to help compare apples to apples. If you take your current car and trade it in on another car, you will finance the difference between the trade in value and the purchase price over the life of a typical auto loan, 5 years. If part of the decision-making process in a new car purchase is the loan payments, I think it's wise to examine how much of that payment decrease is simply due to extending the term. I'm not trying to pass judgement or push for a certain outcome, just trying to help with the analysis.

dmhenderson

This is correct.

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