how soon after you purchase a vehicle can you refinance?

a friend of mine keep asking me that question, in which i have no answer to, purchase the vehicle about 2 months ago.

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  • John W
    Lv 4
    1 decade ago
    Best Answer

    1) In general, you (meaning your friend) can refinance at any time. But there are some things to consider before doing a refinance.

    2) Check the loan contract to see if there is a "prepayment" penalty. A prepayment penalty is an amount of money, usually a percentage of the balance of the loan, that a borrower has to pay to get out of a loan. Prepayment penalties usually only apply for the first year or so of the loan. Auto loans from reputable sources typically do not have them.

    3) Most people wait a while to refinance because they have paid fees in connection with the original financing and are not anxious to incur those again. In other words, refinancing early in a loan can involve a financial loss, the loss being the fees that were paid on the original loan and have to be paid again.

    3) Even if you have to wait a while to do the refinancing, there is no reason why you can start checking out what types of alternative financing are available. You should start asking around with other car financers, such as a credit union, a bank, an online credit source. See if you can find a better deal.

    4) Whether you can find a better deal depends on your credit history. If it is good, there will be many alternatives. If it is bad, you will be facing very high fees and finance charges.

    5) If you have decent credit, absolutely the best place to go is a credit union. In general, they charge lower fees and lower interests rates.

    If you look hard enough, you can find a credit union you can join. It may be in another part of the country, but that is okay.

    This website will help you look for credit unions for which you qualify: www.joinacu.org/

    6) If you want to do a quick check of the type of refinancing that might be available, here are two decent online sites that welcome refinancings, as well as other types of loans. One attraction of these sites is that you can apply online. Thus you get an answer very quickly, which will help you decide whether the cost of the refinancing is worth it.

    The two sites are:

    a) eLoan.com

    b) capitalone.com

    In each case, look for the "refinancing" tab.

    7) To get a general idea of what the prevailing interest rates are, and to get general information about how to select a lender, go to bankrate.com. It is one of the most informative sites around in terms of auto loans.

    8) Finally, if you do to find a better deal somewhere else, you can go with that company or you can use the new offer as the basis for renegotiating with your original lender. This latter technique often works because the original lender doesn't want to lose your business, so they knock the rate down to meet the competition. If you press your original lender hard enough - - that is, suggest that you are going to take your business elsewhere - - they often will not impose new fees on you for rewriting your loan.

    Good luck!

  • Anonymous
    5 years ago

    Here you can get rates: WWW.CREDIT-AND-FINANCE.COM

    RE:How soon after you purchase a vehicle can you refinance?

  • 5 years ago

    For a very similar situation a found a great solution at: HTTP://HELP.MYLOANSRATES.NET

    RE How soon after you purchase a vehicle can you refinance?

    a friend of mine keep asking me that question, in which i have no answer to, purchase the vehicle about 2 months ago.

  • 5 years ago

    Get free rates

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  • Anonymous
    3 years ago

    Interesting question!

  • Anonymous
    6 years ago

    You will find very useful this site for finding the best option for you CREDIT-SOLUTIONS.INFO

  • 1 decade ago

    bad credit, one year, but pay on time!!!!!!!!!!!

    Source(s): been there
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