I've heard many people say they took the FMCC $1K warranty and refinanced their truck in a few months. I didn't, I opted for a much lower rate and gave up the $1k. I just bough a new Chrysler and I took the rebate offered to finance through GMAC because this dealer didn't have access to the other lenders the Ford dealership can access. I'm thinking of refinancing, but I don't know where to start. The rate isn't bad, 5.9%, but I know I can do better.

I've never financed a vehicle after the purchase. If I go to my bank (BOA), will I still get a new vehicle rate?

 

It might not be worth the hassle to change.

Car loans are pretty short term (5 or 6 years) so you won't see the same benefit as if you get a 1% reduction on your 30 year home mortgage.

My my calculations, if you have a 5 year loan at 5.9% interest for $20,000 your monthly payment should be $385.73.

A reduction to a 5% interest rate for $20,000 over 5 years your monthly payment would be $377.42.

That's about $8/month and less than $500 savings over the life of the loan. Less if you sell the car before the loan is due.


If you find somone to give you a 3.9% rate, the payment would be $367.43 for $20,000 over 5 years. $18.30/month saved, or $1,100 if you keep the loan for 60 months.

 

don't forget to factor in loan/processing fees

 

All good points that I've been thinking about. I'm just set on the fact that I got 2.9% on my Lariat. I'm just lucky there though i think.

 

Also, it would now be considered financing a used vehicle. Many times, the rate for used is higher than for new.