Should I refinance my car now? Or wait until later?
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If you refinance it now, you will lose the two payments you have made to interest. On a loan like this the first few years you are paying mostly interest with just a small amount going to reducing principle.
You should calculate total of payments for different rates and see how much you lower an interest rate you would need to save more than the two payments you have just made.
You can get whatever term you want, shorter or longer, it doesn't matter. You can also, if you can afford it, make more than the monthly payment, this will effectively lower your total interest rate.
In any case, the sooner, the better.
Should I refinance my car now? Or wait until later?I would not refinance. When you get a loan the majority of your interest is paid first.
Very little comes off of the principal. If you refinance you will have to start all over with the interest.
I would see what you can do about paying more each month.
Make sure that on your payment coupon you put the extra money down as towards the principal.
Some financial institutions do not automatically do that.
Should I refinance my car now? Or wait until later?You can do anything you want as far as loan length. Simply ask the bank what they can do. If they can make it cheaper, ona 60 month, you'll know.
If you decide to shorten it, I would suggest adding up all the future payments and figuring it out from that how much you're saving. That's not the proper way to do a financial analysis, because it ignores the cost of capital, but it's close enough.
I don't really want to type up here the proper way to evaluate this question.
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