"Should I refinance my car at half the interest rate halfway through the loan? "

"I bought a new Subaru three years ago. The car loan interest rate is 10% and I’ve been paying extra every month so that I am not upside-down on the loan.

I got an offer to refinance the car at a 5% interest rate. Should I take this offer or would it be a lateral move?

"

Answer
“You should absolutely take that offer. You will likely not save a ton of money, but the move will not be lateral, it will be an improvement.
If you can continue making the higher payments, you will not only save more money but you will also pay off the refinance loan early.
One of the best parts about this deal is that you could possibly decrease your monthly payments, making the loan more flexible.
avatar
Johnny Puckett
Answered on May 25, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.