Just refinanced my car

"E90M3" (e90m3) 01/17/2019 at 13:41 • Filed to: None

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Fortunately, my M3 is paid for; however, my 328i is still financed. When I bought it in March of 2017, it was an 8 year old car with just under 40k on the clock. Having just finished an extended period of unemployment, 11 months to be exact, my finances weren’t in the best of shape meaning I didn’t want to put any money down on the car. I also wanted to finance the car over 5 years because I wanted a smaller payment so I could pay more than the minimum and have that extra money go toward principal. Well, the only place that offered me what I wanted was PNC bank. They offered me 5 years at 5.54% meaning my monthly payments were right around $354.

Fast forward to 22 months later. I’ve had the car for 22 months and have been paying $500 a month to pay my loan off faster and I decide that I want to see what I can do to pay it off faster. I have the cash to pay it off, but I don’t want to write that 10k check, so I decide to refinance. I bank with Bank of America and I would like to have all of my accounts accessible in the same place. Long story short, I refinanced ~$9400 with BOA. The terms of the loan were 4.79% for 48 months; payments are right around $215. Simply put, this will save me some amount of interest . I plan to keep throwing $500 a month at it, but it’ll be nice to know that this will lessen the cost to get the title to my 328i.

davesaddiction @ opposite-lock.com > E90M3 01/17/2019 at 13:54

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Did they charge you fees for the refi?

KingT- 60% of the time, it works every time > E90M3 01/17/2019 at 13:55

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DCU always has good rates. They’re east coast based but work nationwide. My wife’s Kia is financed thorugh them. You can work out everything over phone and online forms.

https://www.dcu.org/mobile/loans/auto-choices-mobile.html

Tripper > E90M3 01/17/2019 at 13:56

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I had weird fear of not knowing how to handle money/pay bills when I was a little kid. I remember seeing my dad sitting at the table writing checks and making sure all of the bills were paid, and I think to myself “ FUCK I’m never going to know how to do that!”

That weirdness combined with my parents actually educating me about personal finance, has been such huge help in my life. My most memorable speech from my father on that subject is “whatever you do, don’t fuck up your credit! If you accidentally miss a payment or worse, can’t make one...call them, explain, they will work with you.”

It’s so convenient to have good credit. Most recently I went to my bank and said, “Hi can I borrow enough money to buy a car from 1975 that is currently located in Amsterdam? I’d also like that money unsecured.”

UnderSTeerEnthusiast - Triumph Fanboy > E90M3 01/17/2019 at 13:59

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I’m curious as to if refinancing would  even help me. My ST is at 3.5%/~350 and I’m throwing $600 at it. With how rates are going I don’t even know if I could beat that rate.

Arrivederci > UnderSTeerEnthusiast - Triumph Fanboy 01/17/2019 at 14:01

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You won’t - enjoy the rate you have!

VajazzleMcDildertits - read carefully, respond politely > Tripper 01/17/2019 at 14:06

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I used to have bad credit, as when I left my dad’s house I was completely stupid and in over my head in a lot of different ways.

I bank through Chase and would every couple of years or so try to apply for car financing through their system and it would reject me every time, no matter what the terms I asked for were, no matter what the car.

After about 12 years of dedicated credit control and finance management, one day I clicked on the button, put in ridiculously good terms, and the website went “ok. ”

Just like that. After the initial shock, I went and bought the car, and the dealer managed to beat my approval terms. Haven’t had a car loan since over 4%. 

BeaterGT > UnderSTeerEnthusiast - Triumph Fanboy 01/17/2019 at 14:06

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You’d be hard pressed to find a better rate in today’s market , but let us know if you do!  As long as the extra portion of the payment is going right to principal, you should be in a good spot.  

UnderSTeerEnthusiast - Triumph Fanboy > Arrivederci 01/17/2019 at 14:09

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That’s what I figured. I knew what price point would put me at something I could afford comfortably monthly and shot for a car price roughly half of that, lol. Thanks to that I’ll have this thing paid off 2.5 years after purchase, before either warranty is up. I looked at refi rates online and none were close to my rate, but I didn’t know what credit score that was assuming, and even though mine is high I didn’t think that would get me any better.

UnderSTeerEnthusiast - Triumph Fanboy > BeaterGT 01/17/2019 at 14:12

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It is, I only paid something like $58 a payment on interest and destroyed the rest on principal.

BeaterGT > UnderSTeerEnthusiast - Triumph Fanboy 01/17/2019 at 14:14

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That’s awesome, she’ll be paid off in no time.

Dr. Zoidberg - RIP Oppo > E90M3 01/17/2019 at 14:17

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I never knew you could refinance an auto loan, though I’m thinking, “duh!” when you consider the simplicity of it compared to, say, a house.

E90M3 > UnderSTeerEnthusiast - Triumph Fanboy 01/17/2019 at 14:28

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Nah, it sounds like you should just keep doing what you’re doing. I don’t think you’re gonna get a better rate. 

E90M3 > davesaddiction @ opposite-lock.com 01/17/2019 at 14:28

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They did not, I did see a finance charge on the loan documents, but that was the amount of interest I would in theory have to pay.

E90M3 > Dr. Zoidberg - RIP Oppo 01/17/2019 at 14:29

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It’s on BOA’s main page when you log in, if someone can make money off of it, they’ll do it. 

E90M3 > KingT- 60% of the time, it works every time 01/17/2019 at 14:30

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I got a pretty good rate as it stands, I think BOA claimed to have around the same rates. It’ll cost me less than a grand in interest on this loan if I let if fully mature, so looks like there isn’t much point in refinancing again.

E90M3 > UnderSTeerEnthusiast - Triumph Fanboy 01/17/2019 at 14:31

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Mine, for this loan, was a 790, and all I got was 4.79%. 

Dr. Zoidberg - RIP Oppo > E90M3 01/17/2019 at 14:32

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Hopefully a road I won’t have to go down, but I don’t have much confidence that our next vehicle will be purchased with cash.

SPAMBot - Horse Doctor > E90M3 01/17/2019 at 14:38

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I thought about trying to refinance the 348 but I’m still on track to pay it off in July (32 months total). I probably could have saved a few hundred but it didn’t seems worth the hassle. Plus, it’s more motivation to pay it off early at 5% haha

HFV has no HFV. But somehow has 2 motorcycles > E90M3 01/17/2019 at 14:38

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I just got a statement from my back that basically said that after over a year of mortgage payments, we’ve paid off the interest on the loan. 

Yowen - not necessarily not spaghetti and meatballs > E90M3 01/17/2019 at 14:40

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Hmm, my new-to-me Audi is financed for roughly $9500 as well. But I’m thinking I’ll pay it off so quickly, that even though I’m not happy with my current rate, it won’t be worth the few bucks I save to lower the interest rate on it. I think I’ll be getting it paid off this year.

E90M3 > SPAMBot - Horse Doctor 01/17/2019 at 14:40

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I just want to be debt free so I can save more money, that’s my motivation. I no longer make oil money where I can pay for an M3 in a year and still save 2k+ per month.

E90M3 > Yowen - not necessarily not spaghetti and meatballs 01/17/2019 at 14:44

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Yeah, it really depends on each situation . Mine made sense in the end.

MUSASHI66 > E90M3 01/17/2019 at 14:51

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How does that math work? There is zero chance you are saving $2500 in interest alone when loan #1 is at 5.54% and loan 2 is at #4.79%.

Based on my calculations, you paid around $18500 for the car, and even at 60 months at 5.54%, you would have paid just over $2700 in interest. There is zero chance you are saving $2500 in interest with this refinance.

E90M3 > MUSASHI66 01/17/2019 at 14:55

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I did simple math assuming that I was going to have to pay for 354 for 36 months, neglecting the fact that I’ve been paying more than the minimum. Didn’t realize I did that math completely wrong.

SPAMBot - Horse Doctor > E90M3 01/17/2019 at 15:00

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That is my goal as well. Car paid off in July and student loans paid off by Dec 31st. I want to be debt free going into 2020. But then I’ll probably turn around and use that sweet savings every month to buy another car because I am not a smart person lol

Dr. Zoidberg - RIP Oppo > MUSASHI66 01/17/2019 at 15:21

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whoa.gif

ItalianJobR53 - now with added 'MERICA and unreliability > KingT- 60% of the time, it works every time 01/17/2019 at 16:22

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They actually offered me and a friend of lower rates than those.

They said 3% back then and gave me 2.44 on the Mini. Friend got a WRX at 1.99

TysMagic > E90M3 01/18/2019 at 08:43

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I locked in a pretty good rate for the Miata in the low 3% range, but I’ve been overpaying it. Want to get it down. The CX5 is 0% so I will ride that out at the min payment until the end.