So I got my base, LS cobalt about a year and a half ago, around May of 08, before the whole bad economy and everything. i feel like I kinda got ripped off by the dealer though, I am paying my loan off, I think it was around 13k total, at a monthly payment of about 295 dollars. Is that high for an LS which I put $2,000 down on? I am thinking about refinancing my loan to try and get a lower payment eacch month. I still owe around $9,000 on my current loan. Does anyone think this is a good idea?

 

My 2007 LS was 13K even no money down no trade in I pay 256.69 a month I bought it brand new no miles...

 

I didn't have any credit to get a good interest rate and the only person to cosign for me was my sister, so they used her credit score for it. Right now, my credit score is around a 635, would that give me a lower interest rate and monthly payment?

 

I doubt it.

I got my G5 financed in my dad's name (790 Beacon) with a 6.24% APR. That was a decent rate a year ago. Now I could get 4.2%, but owing $12,200, I doubt it would go through, since the value of the car is in the low to mid 10's.

BTW, I only pay $244.08/month. $15,995 - $2500 over allowance, plus $600 GAP, financed for 72 months.

 

Yup 335 a month with 12% interest for me. Got shafted before the "economic crisis" hit too. I think about 150 or so actually goes to the car payment! And BTW GMAC does not allow any payment over the due amount to go directly to principle. You have to make a Double payment that month and anything after will go towards it(or so they say). That means I would have to pay $670 giving half to interest alone THEN make a payment directly to principle. SCREW GMAC.

But back to your question. If you can get a bank to accept you with at a lower rate. Go for it. But keep in mind most banks and NOT going to make any loans unless your credit score is through the roof right now.

 

yea i got shafted as well... 348 13% rate.. Hate being 20.. they took me and my moms score... I checked freecreditreport and i have a 720, but barely any history and alot of hard inquiries when i tried buying the car... Could that be why its such a high rate?

 

Yup! My credit score was great. But I didn't have a House, 2 cars already, a boat, a trust fund, a Swiss bank account, and a gold statue as collateral like they wanted. Dont worry though, after the pay off that retarded interest rate it will look good for the next car you buy. And you will have all the buying power.

 

u guys should have bought cobalts off me

 

does anyone know how credit works with paying off my car early? I have about 8500 in my savings, and i plan to save up another 5000 ( the extra that will be needed to pay off car in full by end of summer)... I bought the car in november of last year for 16k after taxes everything etc with no down payment ( dealer had to pay off my old car loan )

Would paying a 5 year loan off in less than two look really good or how does that work?

 

And this has to do with LNF performance how again?

 

depends what your interest rate is. if you actually look at the stock market there is wayyy more potential to make a positive gain above your interest rate. depending on what ur contract states depends if u can pay it off early. usually you can but theres a wicked penalty and this could lower your credit score.

paying off credit too fast isnt necessarily good for a credit score. your bound by the contract you sign and when they determine your credit score its based on the interests of the creditors. you paying off early could mean less profit for creditors which pisses them off and this will lower your credit score. do what your contract tells you to do to maximize your credit score

if you have a sweet low interest rate you should use your money towards the stock market right now (etf's are doing awesome right now especially Brazilian ones such as EWZ on the nyse) . you could pay off ur loan and have 0 dollars left in your bank account or you can take your 8500 invest it and make probably near 10% right now cus everything is still a little undervalued in the market. then use profits and your $5000 towards paying your 5 or 6% loan off. It sounds like you have a job and can use money from it towards car payments also. you'll actually gain income doing but get some financial advice if you don't know how to analyze individual stocks.

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yea ill have to ask.. all i know is 13% is crazy high and i wanna get this loan done so i can buy a bike and have only one loan out at a time.. the bike loan will obviously be alot smaller, so i wouldnt have a problem making those payments.. i have 2k hidden for a down payment on a used bike haha

 

I have been reading though and I only owe abou 9 thousand on my car still, and most places say that I will get a lower interest because the bank I would refinance with will try and get my business fom the other bank and because of the recession, interest rates are lower than normal. Is that true?

 

Here is the thing with credit... regardless of any penalty for early payment or not... the more history the better.

If you pay off a $13,000 car in 2 years does it look great, well kind of. You only had 2 years of good credit though. If you make all your payments for the full 5 years and you are never late you have 5 years of credit history. Same amount of money, longer credit history. In the end, taking the 5 years to pay it off will actually raise your credit score more than paying it off 2 or 3 years early.

I am not saying that paying it off early is a bad idea, I always try and pay off my debt as early as possible. Just stating that if you are specifically looking to raise your credit score as much as possible then making a full 5 years of payments will help you out more.

 

^^sorry to this but the above is incorrect