Time to Refinance? Any Ideas

[gamblingsucks]

I was discharged in August 2007 for Chapter 7 and focused heavily on rebuilding my credit. Very shortly after the discharge I needed a car because my other one was beyond repair so I was stuck taking a bus for 4 months I could not wait any longer, I know the proper thing would have been to buy a beater but I didnt have 1k in cash or to borrow. I paid the price and Capital One Auto Finance has hit me with a 25% APR $559 on a 2005 Nissan Altima S with 27k miles. My friends convinced me so I signed and that was it.

Ive been paying on this since August of 07 and after my January payment coming up I want to refinance. I would do it right now but Im waiting for the dealership to credit me back my GAP refund. My credit is better since discharge and Im hoping someone can give me an idea on where is the best spot to look for refinancing for post BK people.

[BassBoy]

Usually, you'll have to have a one year history of on time payments before you can refinance. What you'll also have to consider is the value of the vehicle compared to the loan amount. Some lenders may allow you to borrow 110% of the vehicle's value, but I wouldn't recommend refinancing a vehicle at this LTV. I would recommend, and say yes, to this idea if you're able to lower the rate, lower the payment and shorten the term of the loan.

What is your current loan terms? 48 months? 60 months? 72 months?
Would you then refinance at the same term as your original loan? Longer?

Consider the above questions before you plunge into a refi. If you can see the benefit, then yes, a refinance is better for you. If you don't see the benefit, then you'll have to bite the bullet and keep making those payments for a while longer.

Lastly, my opinion is that NO ONE should pay the kinda rate you got. There are way better rates and terms out there for individuals with credit problems and BK's. That's just my 2 cents.

[chpxiii]

Lastly, my opinion is that NO ONE should pay the kinda rate you got. There are way better rates and terms out there for individuals with credit problems and BK's. That's just my 2 cents.

Completely agree with you. Just because we went bankrupt, doesn't mean we need to be financial r@ped again just to rebuild our credit. That totally negates the "fresh start" we're hoping for.

The problem with creditors is since they essentially got burned from having people go bankrupt, they decide to punish us with outrageous interest rates.

As consumers we need to fight against this.

To gamblingsucks, I don't have advice, but good luck with whatever you do.

[BassBoy]

Just because we went bankrupt, doesn't mean we need to be financial r@ped again just to rebuild our credit.

Good point. People need to stop thinking/believing that the high interest rates is all that's available to them because of poor credit and/or BK's.

Another opinion I'll offer is that there are plenty of dealerships out there that will take advantage of those with poor credit and BK's. Stay away from these con artists! They'll state an interest rate, and if the buyer accepts it, the dealership gets to stuff it's pockets.