Solve an argument – refinancing car loan AFTER making really large payment?
Question by hbds: Solve an argument – refinancing car loan AFTER making really large payment?
If you’re planning to refinance your car loan in a few months (at a MUCH lower interest rate) what is the logic in paying a large chunk of money NOW to the company that holds the high-interest loan at the moment?
Seriously, I’m missing the logic here. Wouldn’t it be smarter, if you have a chunk of money (which is equal to three high-interest rate car loan payments) why wouldn’t you just make your normal payment for the next few months, refinance at the lower rate and THEN pay the big chunk of money?
Best answer:
Answer by Dean C
As long as you are current on your loan, i would do as you say. once you are into the new loan pay it down if you want or better yet, just double up on your payment if the difference is enough
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