My current auto loan rate with Hyundai Motor Finance is 6.8. My credit score is 740+. They gave me rebates and bumped up the APR.
Any suggestion of credit unions/banks for refinancing to lower my APR?
- Oath Atinlay2Never refinance an auto loan. Let alone a Hyundai. You took a bad deal from the beginning. Just pay it off and lesson learned.
- @Atinlay2, there’s something called the principal. That’s the payoff amount. That’s what you ACTUALLY OWE. Compounded interest is calculated at the very beginning and amortized across all payments. The first payment will be mostly interest, the last will be mostly if not all principal. Paying off a loan only requires (nowadays) that you pay off the outstanding principal amount. Refinancing is basically taking a loan for that outstanding principal amount and redistributing it again across X payments with a new interest calculation and amortization schedule. OP actually made a good choice IFF he can get a much lower rate through refinancing. Otherwise those “rebates” were simply just put into the loan itself in a form of higher interest. All in all, the smart(er) move is to always get the deal that lowest the cost of the car the most and then pay off the loan quicker or refinance at lower interest.Aug 5 1