QuestionHey Clark , I talked to some dealers and I got a clear information about how switching from financing to lease works , so I have a simplier question now :
Right now I am financing with very high interest rate, If i refinance my car with a credit union and get a better rate , will my payoff be cheaper aswell ? Is the payoff amount related to my interest rate ?
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Followup To
Question -
Hey Clark ,
Right now I am financing a car with for almost a year a very high interest rate because I was just settling in here in the states , I didn't have credit, now I do have some credit and I'd like to switch from my financing to leasing a different car.
I basically dont have any information on this , how to approach.
- Should I refinance my loan and get a low rate first and then try to swith to a lease or should I directly try to switch ?
- Who do I go first , to my financing company or the dealer to get the lease ? are they going to take my car and take care of the loan ?
if you can give me some information on this subject , I'd greatly appreciate it.
Thank you
Answer -
The first thing I would do is check with my own bank or credit union and ask them for a loan. That way if the dealership cannot get you a lower interest rate you are not backed into a corner. As for refinancing your current vehicle, if you like your current car refinance it. If you are ready for a new model trade it in. I hope this helps. If you need any further information, do not hesitate to write back.
AnswerYour payoff will not be less, as your payoff is the principal amount financed not including unearned interest. Your payments will go down if you refinance at a lower rate. It would probably be a god idea to go with your credit union’s financing package.
