(Millersburg, OH )
Question: My aunt got a call from Chase bank to talk about refinancing her auto loan that she got from them. She bought in 2008 and still owes $9,500. Her current payment is $383 and finance rate is 9%.
Chase called her and said they could refinance it at 6%. Why would they do that? Wouldn't that just cost them money? The Bluebook value is $13000, private party sale in good condition. Thanks for your help. I am not sure of her credit score.
Answer: Hi John,
I'm not really sure what Chase's motivation was here. It may have been a customer retention thing and they may have been losing business by customers refinancing with other lenders. They could have been trying to keep her business before she looked to other lenders.
My suspicion here is that she could probably get an even better rate with another lender. Have your Aunt take a look at Money Aisle as well to see what the lenders they work with are able to do for her.
She'd need to have some idea of her credit score in order to get accurate rates, but if she is a 700 or higher, then she could probably get a rate in the 4's. I can't say for sure, but that is where many of the prime rates are now.
How’s your credit score? 0-600 Poor, 601-680 Fair, 700-774 Good, 775+ Excellent. Find out your Score now FREE!
All in all and whichever way she chooses to go, she should definitely look into refinancing, because if she does qualify for a lower rate, but doesn't refinance her auto loan she is simply throwing money away each month. By the way, refinancing is typically free and a fairly easy process.
Hope this helps,
Return to Refinance My Auto Loan.