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I've got a 2k1 civic LX coupe auto... I've had it for 2months.. but I find out that.. 2k2 civic has alot lower interest rate than 2k1..
is it possible to re-finance and get a 2k2 LX manual? let me know.. your 2cents...

also.. Do I have to go to the dealer that I bought the car from to refinace or trade in? or can I go to a different honda dealer?

Thanks..

 
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<< I've got a 2k1 civic LX coupe auto... I've had it for 2months.. but I find out that.. 2k2 civic has alot lower interest rate than 2k1..
is it possible to re-finance and get a 2k2 LX manual? let me know.. your 2cents...

also.. Do I have to go to the dealer that I bought the car from to refinace or trade in? or can I go to a different honda dealer?

Thanks.. >>



As far as refinancing at the 2K2's interest rate, I doubt it. If you are going to do a trade, I would recommend you go to the same dealership you got yours from. They will probably give you the most money for your car. That is not always the case though. If you are just going for a straight refinance, I'd wait about another 13 months or so to get the best rate as you will have some equity built up in your car.

 
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it is possible, and you can go to a different dealer. You wouldn't be refinancing you'd just be trading in your car and buying a new one. You'd have to look at the details of your current loan if there are any charges you'd incur

i don't know what emmag was talking about building up equity, your car loses value the more you drive it.

 
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Right, your car does lose value the more you drive it. But, if you just got the car 2 months ago, you will have negative equity in your car. You will have to pay more to do a trade now than if you were to wait for a year or so as you would of had time to build up equity in your car!!!

 
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thanks for the quick reply guys/gals..

 
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Your car doesn't exaclty build "equity" that's more of a home mortgage thing. And waiting another 13 months or so until your not "upside down" really won't do much for you. Your still paying +/- $300/month and for another year that's $3,600. Your best bet is to try and sell it to and purchase a new 2k2, If you really want a 2k2. Otherwise you can check around for low refinance rates for cars. The internet is an excellent place to search. Even though you are probably upside down on your car a little bit, most financial institutions will finance retail value, which you should be below. Some will even finance retail + some to cover for you being upside down. Your situation is nothing new and most places will work with you.

 
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If you trade it now, you will be upside down. Cars depreciate the most when they are driven off the lot. If you wait a yr, 2 would be best, you will start to be making payments that are linear with the value or depreciation of your car. If you trade, you will be refinancing the difference between what you owe on the your old car and the difference between what they give you for your old car and the new one. You will have more equity if you wait longer but once you factor in the interest that you are paying to build that equity, you may come out better to just trade. You really have to run the numbers. If you want to find out what you are paying towards principal each month, you need to set up a payment schedule. Here's how:

Take the amount that you financed when you bought the car and multiply that by your interest rate. You will get a number. Take that amount and deduct it from your monthly payment. What is left of the payment is how much you paid towards the principal. Deduct the amount you paid towards principal from what you owe on the car. At next payment, multiply the new principal amount by the interest rate and deduct the interest from your payment, etc... You can do this for the life of the loan, preferably in an excel spreadsheet. You will notice that you pay the most interest up front and with each succesive payment, the interest you are paying will drop by about a dollar or so. This works for simple interest loans, which most car loans are.

Anyhow, I traded a much nicer car for my vic and I took it in the rear money wise. However, I am much happier and that is what you need to think about.

 
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<< I've got a 2k1 civic LX coupe auto... I've had it for 2months.. but I find out that.. 2k2 civic has alot lower interest rate than 2k1..
is it possible to re-finance and get a 2k2 LX manual? let me know.. your 2cents...

also.. Do I have to go to the dealer that I bought the car from to refinace or trade in? or can I go to a different honda dealer? >>



I recently re-finaced my car last month. I have had it for about 6 months. I went from a 5year 8.9 APR to a 3 year 5.9 APR. So while I am paying more, I will have the car payed off quicker, lower APR. I was already paying more with the 5year so might as well go with the 3year.

I went to a different broker then I had previously had. They gave me a pretty decent used car pricing from Kelly's Blue Book. Not great but yet suitable.

Ray

 
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1 year !!!!!