Car Loan Tips | How long do you NEED to wait before refinancing?

How long do you have to wait before you can refinance your car? Well, don't take the car dealership's word for it...

Save some interest money and get an extra $25!

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[ThaDonShawn]

That's the EXACT same line they gave me at the dealership! Refinancing immediately!

[technoviolent]

The “you can refi in 6 months” statement usually applies to the buyer with bad credit who complains about rate. If the buyer demonstrates that he can pay his note on time for 6 months to a year, a refi lender will be more likely to give you a lower rate.

[xaznranmarux]

Thank you so much for the tip I was lied to by my friend who’s the finance manager at toyota lol. Told me to wait a year. So much for a friend right 😂 I went to the credit union 5 minutes after I watched this video, got approved for 2.99% for 60 months instead of 7% for 72 months. Saved a lot of money thanks to you.

[CJHissle]

Thanks so much for the info! I just bought a new car a few days ago and was not happy with the 72 month financing plan on top of the interest. Plan to refinance ASAP once I get my registration and pay off statement.

[babagambo]

Thks so much mike for this video ..i am in a very crazy setuation with a 22%car loan just waiting to build my credit a little before check out wht rate i could get..

[XPXhumble]

That exactly what my dealer told me don’t worry you can refinance your car in 6 months

[michealboney]

I work at a dealership and to answer your question: No. We don't get an extra commission if you want 6 months to refinance. You get a loan from a lender and that lender sends the dealership the amount financed in one lump sum. Even if you finance with your own bank or credit union they simply give the customer a bank draft that the customer then gives to the dealership, or the lender could electronically transfer the bank draft. Telling someone to wait 6-18 months to refinance is usually when someone has less than perfect credit to the point where they are at the legal maximum interest rate of 21%. Those customers do have to wait to re-establish credit to get a better rate.

[devinsisson]

Man I got super screwed on my auto loan. 23.72% on 18k loan. I'm paying over 300 in interest every month. Definitely was an uneducated purchase.

[Jabinski]

Thank you so much 🤗🤗🤗👍🏼👍🏼👍🏼🥳🥳🥳. you save me a lot of money with this video I went to my credit union and I got a great deal on my car loan

[mandyzepeda]

I have no clue if this is exact but the car salesman told me the six months for me was because my trade in being paid off totally will really increase my credit score greatly but the way the dealerships (ie honda, nissan, ford, etc) do reporting may take at least 3 months to actually show on my credit report. I may now just go for refinancing as soon as it shows on the report and not the whole 6 months

[saminicole]

I've sold cars at 3 dealerships. Salespeople only get commissions off the (hopefully) profit of the vehicle. The reason they try to get you to buy now in house is because they make minimum wage weekly that is then paid back out of their "bonus" check that gives them their commissions on a month(most dealerships) so they're trying to make a sale.
The financial managers that have you sign the paperwork get commission off the loan to an extent. Where they're REAL commission comes from is when they have you signing paperwork and offer you all the extras-extended warranties, protective measures, add ons, remote start, etc. By the way, if you want those things, tell your salesperson first. They can help you figure out what you actually need and they put a lot of work into you so help your sales associate out with the commission on extras instead.
Also, typically they say 6 months just because your car's value dips dramatically as soon as you sign the dotted line... harder to get that financed with negative equity.

[MissEnglish]

Mike I luv u, ur content is priceless

[keenanfrancis]

It’s more of a recommendation as far as 6 months go. It’s a good window to noticeably build your credit vs immediately refinancing. If you refinance before that it’s almost like you might as well finance third party in the first place

[rayharris]

Should you pay extra money on your note and does that help with a balloon note at the end.

[lingnaing]

I bought a car last month and my interest rate is 19.99%.
My credit score is 679s and should I refinance now on. I live in Texas if possible to refinance which credit union should I go to. Thank you

[trublu]

Hi when u refinance does it effect your credit score

[rubensanchez]

My situation exactly. I was a “Credit Ghost” that had a zero due to lack of history. Never had a credit card, never had any loans, etc.

Because my score was zero I got a 16% interest rate. I’ve been steadily building that score over the past 8 months. Now my credit is 670 and I’m trying to refinance. Thanks for the help!

[chrishunt]

Some dealers, you will get rebates from the manufacturer, have to finance with chrysler capitol. They will tell you that you need to wait 6 months or 3 months. Before you can refinance. That's BS because they will be charged back on the higher interest loan . I made one payment because I had to have title to refinance with a credit union. I dropped 5%and a 54-month loan instead of 72.

[cobrahatch]

I have always just heard with my bank etc wait 6 months and you get full credit for loan, but I dont know how that could be actually farther from truth, as most car loans is payment history that you really gain

[brittney]

I want to refinance my car, because i have a 15% interest rate, and my credit is waaayyy better now. I want to get a lower interest rate. Not necessarily lower payment. Not sure what to do.