Refinancing

Discussion in 'Business Operations' started by mike33087, Sep 17, 2007.

  1. mike33087

    mike33087 LawnSite Member
    Posts: 108

    who do you guys recommend to use to refinance my truck loan, i want to shorten the term, and maybe get a better rate.

    also do u perfer to lease or buy, planning for the spring... new dump maybe
     
  2. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    be careful about refinancing.

    you will pay "points" or percentages of the loan to refi.

    depending on your current rate, it may not be worth the cost.
     
  3. J&R Landscaping

    J&R Landscaping LawnSite Fanatic
    Posts: 5,096

    I bought a car in the end of June 07. I made 2 payments on it and then my insurance agent said (State Farm) they could re-finance the loan and save me some money. I was paying $268 a month for 72 months @ 10.79% through Chrysler Finacial.
    I re-financed with State Farm Bank for $298 a month for 60 months @ 9.19%. Its gonna save me about $1900 in intrest and have me payed off a year earlier. I'm gonna do my best to stay a payment ahead though so I should be able to get it payed off even sooner.
     
  4. Mrs. H

    Mrs. H LawnSite Senior Member
    Posts: 708

    This was a good call. 72 months is way too long to finance a vehicle. Ours are at 60 months and I want to double payments to get them gone early.

    I've read...but have known nobody who can or has done it...that a 36 month loan is the ideal auto loan and that if you can't afford a 3-year loan, you can't afford that auto.

    I take that back...a little. The first car David and I bought together was a Ford Escort on a 3 year loan. We paid it off in 9 months by doubling payments...now that has not happened since. Our current home use vehicle...a mini-van, is on year 3 of a 5 year loan. I hate it because we're up to 107k miles and I have never made payments on a vehicle with that many miles on it. David says to chill out about it though because we change the oil every 3k and it is made to last longer. Still, I'm skeptical.
     
  5. ED'S LAWNCARE

    ED'S LAWNCARE LawnSite Senior Member
    Posts: 361

    You have an 07 and paying 10%??? Just about every auto maker out there has 0%-3.9% for 36-60 mos. We bought a 07 honda odyssey for 1.9% for 60 mos. Back in 02 we bought a 02 yukon denali for 0% for 36 mos. With all the deals out there I couldn't imagine paying 10%.
     
  6. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Posts: 1,762

    I had re-financed 2 truck loans one with wells fargo and one with capitol one. Things went way better with wells fargo....paid it off earlier and saved money. Capitol One seemed to have changed the ball game up inbetween the loan and caught me with some of their sly small print crap. Still paying for that one
     
  7. J&R Landscaping

    J&R Landscaping LawnSite Fanatic
    Posts: 5,096

    My fault,,,
    I bought the car June 26 2007. It was used, a 2005 model with 35,700 miles on it.
     
  8. Mrs. H

    Mrs. H LawnSite Senior Member
    Posts: 708

    Its not a "fault" to buy a used car;) . We bought an '04 in the end of '04 that was a program car. Overall, even with interest, I will have paid only 1/2 of what it would have been new. And, it was still under warrenty. Used cars are o.k. in my book.
     
  9. jcthorne

    jcthorne LawnSite Member
    Posts: 208

    No offense here....but if you've got to finance a car for 72 months you have no business buying that car. That interest rate is stupidly high as well with all of the rates on cars these days. If you've got bad credit and can't get the rate then don't freaking buy. Pay cash for something you can afford and figure out how to amend your credit.
     
  10. cutbetterthanyou

    cutbetterthanyou LawnSite Bronze Member
    Posts: 1,178

    I don't think it is wrong to finance a vehicle for 72 months in all cases. In your case, yes. If the vehicle is worn out before it is paid for and you are paying interest on it. My truck is o% w/ the extended 6 year warranty. I think if i can get o% and my warranty is out when it is paid off why not spend your money on other things that have interest like my house?
     

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