Long term auto loan vs short term (refinancing)?

Well i am 20 years old and not much credit history. I have good credit but not enough credit history which originally qualified me for my 60 month 8.99 APR loan for my car. Now that i have waited and built up my credit history I am looking to refinance for a better APR.

Now my question is when i refinance to get a lower APR should i apply for a short term or long term loan. If i get a short term obviously i will get a little better APR but if i get a longer loan and pay more (example if my payment is 200/mo i will pay 500/mo towards the actual car) Compared to a short term where my monthly payment could be like 300-400$ and i wouldnt pay as much towards the car.

Which would help me pay off my car faster? The short term or long term while paying more twards the car?

Update:

I want to refinance so i can pay more towards my car and not my interest rate. Im looking at paying this off within 2 years. My current loan i cannot pay as much towards the actual car so im paying way more towards interest and not paying off the car fast. Which is why i want to refinance so i can pay more towards the car and not the loan because as i said i want to pay it off within 2 years which is possible because i have a stable job.

10 Answers

Relevance
  • 9 years ago
    Favorite Answer

    Why not keep the current loan, and just work hard at paying it off yourself.

    There is no law that states you cannot pay extra payments towards your car payment.

    Re-financing will cost you - nothing in this world is free.

    If you do re-fi, do the shortest term possible.

    But 9% is not high enough. I would just make a goal to pay the loan off in a year and be done with it...

  • 3 years ago

    Short Term Auto Loan

  • 3 years ago

    1

    Source(s): Bad Credit Car Loans - http://CarLoan.trustdd.com/?zVrr
  • Anonymous
    5 years ago

    I'm certain that you will find every financial solution at= loanhome.info-

    RE Long term auto loan vs short term (refinancing)?

    Well i am 20 years old and not much credit history. I have good credit but not enough credit history which originally qualified me for my 60 month 8.99 APR loan for my car. Now that i have waited and built up my credit history I am looking to refinance for a better APR.

    Now my question is when i refinance to get a lower APR should i apply for a short term or long term loan. If i get a short term obviously i will get a little better APR but if i get a longer loan and pay more (example if my payment is 200/mo i will pay 500/mo towards the actual car) Compared to a short term where my monthly payment could be like 300-400$ and i wouldnt pay as much towards the car.

    Which would help me pay off my car faster? The short term or long term while paying more twards the car?

  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    5 years ago

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

    RE:Long term auto loan vs short term (refinancing)?

  • Cheryl
    Lv 4
    4 years ago

    Currently I'd pick Long Term because I love who I'm with, but if it was anybody else than Short Term...

  • 9 years ago

    How long do you have left on the original loan? If you have the ability to pay extra, just do that, that will be the fastest, best way to do it.

  • DEBS
    Lv 7
    9 years ago

    The lower the rate and the higher your payment is always the best deal to pay off your car. If you can afford the higher payment then get the lower rate. Period.

  • Anonymous
    3 years ago

    I often end up writing the same thing on other sites

  • 9 years ago

    Look at bankrate.com

    They have good calculators and you can run any scenario you can think of.

    I use it a lot.

Still have questions? Get your answers by asking now.