Advice on refinancing an auto loan to lower 18 percent interest rate!?

Filed for bankruptcy over three years ago and several months later I totaled my car. Had to buy a car asap as I lived 25 miles from work. Had no savings or a car to borrow. Now stuck with a 2004 auto worth about fifty-five hundred and owe about twelve thousand on a 7-year loan! HELP please!?!

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  • 1 decade ago
    Favorite Answer

    Lamenting and criticizing your decision makes no sense after the fact. Step 1: find out what it would take to pay off the loan right now. It should be substantially less than $12,000. Most states ban prepayment penalties on consumer loans so do the math yourself if the lender won't help.

    Step2: Figure out how much of the outstanding principal you can pay off from savings and see if a credit union can cover the remainder if you agree to rollover the car loan with them. If you can't get a new loan, see how much you could sell the car for and with your savings can you pay off the loan.

    Vulture lenders like buy here pay here used car dealers exist to exploit people that don't know any better or have few options.

    Last point - my commute is 3 times as long as yours and I make very good money. I drive a 15 year old car that runs great with no payments and inexpensive auto insurance. Get a good, solid older car and start rebuilding your credit so that when your bankruptcy record is deleted you can live a little less stressfully.

  • Anonymous
    7 years ago

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    RE Advice on refinancing an auto loan to lower 18 percent interest rate!?

    Filed for bankruptcy over three years ago and several months later I totaled my car. Had to buy a car asap as I lived 25 miles from work. Had no savings or a car to borrow. Now stuck ...show more

  • 4 years ago

    1

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  • Anonymous
    1 decade ago

    They don't give 7 year loans do they? Only 6 years I thought. I don't understand how people do stupid things. 18% ? I think mine is a 5%. Most of the interest on a loan is paid up front. So if your 4 years deep you may just be paying on the principle now. If you refinance you'll go back to paying interest. Check out your schedule to see how much of your payment is going to the principle. What you need to do is buy a used car outright with liability insurance.

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  • DON W
    Lv 7
    1 decade ago

    Do you belong to a credit union? They typically offer low interest refinancing loans to their members.

  • kerri
    Lv 4
    5 years ago

    Really good question, looking forward to going through the answers

  • 1 decade ago

    Why did you not move nearer to your work or else change your job?

    Not surprised you got yourself bankrupt as you appear to be totally disorganized

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