Should I refinance my vehicle if lenders require me to extend the loan to 60 months?
"I got a 60-month loan with a 22.9% interest rate because of poor credit. I only have 24 months left on it.
A local bank has now offered me a 5.99% rate if I extend the loan to 60 months.
Should I still refinance my vehicle?"
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Answered on Jun 17, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“Unless you can find a lender that’s willing to keep your loan at 24 months, refinancing for 60 months is not a smart move.
That said, you’ll have to do calculations to see if the refinancing will actually save you money. In all likelihood, it won’t or it will be a wash.
In the future, shop around for rates instead of signing for a loan with a rate that high.”
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