Help understanding re-finance/new car
Thread Starter
Super Member
Joined: Sep 2008
Posts: 833
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From: St. Paul, MN
2011 E550 4Matic
Help understanding re-finance/new car
So if anyone saw my recent posts over in the E class section....I bought a C300 around 6 months ago, 72 month finance through chase with a co-signer (dad) for like 33k. But have found myself needing more space in the car, my dealer has a nice E350 in for 44k, im trying to understand how i can re-finance to upgrade.
My current payments are about $500 a month, $29k left, im thinking about trying to trade the car back, towards the E, estimating i get 27k for the car, someone mentioned BofA has 2.94% financing going, which i did a quick estimate on their site saying 27k trade in, 29k remaning, new car 40k (if i can talk them down) will give me a 84 month loan with monthly of $527
I have a couple questions on this, first off: any major problems with this that anyone can see? rather new to buying cars and the whole financing side of it so i may have totally missed something.
2nd: I needed a co-signer for the chase loan, whats the chances that BofA will want one to re-finance if i move to them? Reason i ask is my dad may murder me if i ask him to cosign for another car this soon so if i can do it without needing his signature....easy
3rd: If i called up Chase and told them my plan, any chance they will do somethign to keep me from going? like offer lower rates, attempt to keep me their customer and try to do this all through them rather then loosing me?
Thanks guys!
My current payments are about $500 a month, $29k left, im thinking about trying to trade the car back, towards the E, estimating i get 27k for the car, someone mentioned BofA has 2.94% financing going, which i did a quick estimate on their site saying 27k trade in, 29k remaning, new car 40k (if i can talk them down) will give me a 84 month loan with monthly of $527
I have a couple questions on this, first off: any major problems with this that anyone can see? rather new to buying cars and the whole financing side of it so i may have totally missed something.
2nd: I needed a co-signer for the chase loan, whats the chances that BofA will want one to re-finance if i move to them? Reason i ask is my dad may murder me if i ask him to cosign for another car this soon so if i can do it without needing his signature....easy
3rd: If i called up Chase and told them my plan, any chance they will do somethign to keep me from going? like offer lower rates, attempt to keep me their customer and try to do this all through them rather then loosing me?
Thanks guys!
Senior Member
Joined: Apr 2007
Posts: 283
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From: Dallas, TX
2012 ML350BTC
1st - Rates like the posted 2.94% are generally only available for someone with excellent credit on a loan that is structured well. If you needed a co-signer on your initial loan, and are rolling negative equity into a loan I can see those as two big red flags to not be able to secure a rate that low. Also, any length of loan longer than 60-72 months requires even more stringent rules for approval and will almost always carry a higher rate as well.
2nd - Stop calling this a refinance. You are talking about a completely new loan. A refinance is having a lender re-do your current loan, which this is not. In a situation where a co-signer was needed initially, I am guessing you have not been in the loan long enough to warrant a lender considering approval of a loan on your own yet. Generally takes a few years of perfect payments for that to happen.
3rd - Nope. They will give you the address to send the payment to payoff the loan and say thank you and goodbye.
2nd - Stop calling this a refinance. You are talking about a completely new loan. A refinance is having a lender re-do your current loan, which this is not. In a situation where a co-signer was needed initially, I am guessing you have not been in the loan long enough to warrant a lender considering approval of a loan on your own yet. Generally takes a few years of perfect payments for that to happen.
3rd - Nope. They will give you the address to send the payment to payoff the loan and say thank you and goodbye.
