3 Comments

1. My Take on It says:
   August 14, 2010 at 3:48 am

   How long has he has this loan? How long is the loan for?
   Either your friend is not asking the right questions, or gives up when they tell him they only refinance one way. What does that mean? He should have kept them on the phone until he understood what it takes to get refinanced.

   The thing is, if your friend took out a 5 or 6 year loan (even a 3 year loan) and has only made payments for a year or two, he is probably *upside down or underwater* on his loan, meaning he owes more than the car is worth. That means they *won’t* refinance him unless he brings some cash to the deal to cover the shortage of equity on the car.

   Also, if he is wanting to refi because of the interest rate being high because he had less than great credit and it has only been a year or 2, his score may not be high enough to get the best rate anyways.

   Capital One is in it to make money. That means, if they can charge 13% instead of 7% on a car loan, that’s what they will choose to do. They do not *have to* refi your friend.

   Now, that doesn’t mean he cannot go to other sources to see if he can get a deal.
2. E&L says:
   August 14, 2010 at 4:03 am

   If he already HAS an auto loan with Capital One I’m assuming that they think he already know the details of his existing loan. Depending on the age of the car, there may not be many options available. Why does he not choose another lender who would be more willing to answer the questions he has.
3. William says:
   August 14, 2010 at 4:26 am

   Financed cars is more expensive to insurance cause it requires full coverage. You can compare how much you would pay for full coverage of this car using this tool – carinsurance.yoll.net