Should I try to refinance my minivan?

cbmeeks · #1 (**permalink**) 05-25-2006, 08:10 AM

I owe over $13,000 and they are raping me at 21.23%. They are HSBC.

I owe $11,800 on my car and they are charging me 17%. They are CitiFinance.

Should I contact HSBC and see if they will give me a lower rate? Should I call CitiFinance and see if they will transfer the loan?

Should I bluff HSBC and say CitiFinance will transfer over?

Opinions appreciated.

Thanks!

cbmeeks

Fern · #2 (**permalink**) 05-25-2006, 08:43 AM

Yes, yes & yes! That's crazy to have to pay that much.

jmjj215 · #3 (**permalink**) 05-25-2006, 08:45 AM

Do it! Now! Today! Post in an hour and tell us how it went.

cbmeeks · #4 (**permalink**) 05-25-2006, 08:52 AM

Quote:

Originally Posted by jmjj215

Do it! Now! Today! Post in an hour and tell us how it went.

LOL

The paperwork is at home. I will get it together tonight and give them a call on my lunch break tomorrow.

I will let you all know the status.

Any tips??

sweeps · #5 (**permalink**) 05-25-2006, 08:59 AM

While it's definitely worth a try to call up finance companies and ask that your rate be reduced, it seems they've caught on to all the bluffing and threats to switch. At least based on anecdotal evidence from this site and other sites.

I mean if someone really got an offer to cut their 20% loan down to 9% at another company, don't you think that would've done it already?

Ima saver · #6 (**permalink**) 05-25-2006, 09:02 AM

It will not hurt to ask, but I really doubt that they will reduce the rate.

cbmeeks · #7 (**permalink**) 05-25-2006, 09:05 AM

Quote:

Originally Posted by Ima saver

It will not hurt to ask, but I really doubt that they will reduce the rate.

That's what I am afraid of. I think I might just call the "lower" 17% people and see if they can transfer?

That would at least save me 4.23% per month.

debtdude · #8 (**permalink**) 05-26-2006, 10:32 AM

Look to credit unions for low-rate auto loans.

cbmeeks · #9 (**permalink**) 05-26-2006, 10:41 AM

Any recommendations?

JBinKC · #10 (**permalink**) 05-26-2006, 09:53 PM

That is a bad rate but perhaps it is justified. What is your credit score? Can you take out a home equity line and pay off the van? Do you have enough in your 401K to borrow against it and pay off the van!

Bluezy · #11 (**permalink**) 05-27-2006, 04:16 AM

Quote:

Originally Posted by cbmeeks

I owe over $13,000 and they are raping me at 21.23%. They are HSBC.

I owe $11,800 on my car and they are charging me 17%. They are CitiFinance.

I feel faint....

Do you have a local credit union where you live, or can affiliate through your employer? You could get much better rates at a CU, providing your credit score is fairly presentable.

Please keep us posted and the best of luck finding a good rate!

markio26 · #12 (**permalink**) 05-28-2006, 12:59 PM

yes, i would eliminate that vehicle debt anyway i can... my son traded in his wifes dodge caravan 2002... he got some kind of a plan discount, he is a cop, anyway, it was a horrible high rate.. he traded for a new ford espirit, i think he called it.. it is like a station wagon/mini van combo.. his rate is 5.50% and the payment is $400 a month for 5 yrs. can you obtain a plan discount, local discount, gm cc discount, etc.. maybe you can trade up and trade down your balance.. do you know what i mean? please read my thread in general discussion.. are your neigbors driving newer vehicles...

debtfreesteve · #13 (**permalink**) 05-28-2006, 10:10 PM

Do you want to have car payments for the rest of your life? If not, sell one.., take a loan out for the difference if you are upside down, plus a little to get a $2-3k mini van (or do the car if it's driven less/ used less, etc) Then, pay yourself that car payment, and you'll be back in about the same mini van or car paid for, in about a year

Whatever you do, just have a goal to start paying for your vehicles... We saved $8,000 last year by not having those payments.