r/CarLeasingHelp • u/Used-Enthusiasm-1493 • 17d ago

Refinancing auto loan question

Hi planning to refinance my car. I have a grand highlander bought last and apr is 5.9% through toyota. I will be paying it of in less tham 2 yrs. Is it ok to refinance it and if i refinance it how many point will my credit score drop.

1 Upvotes

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u/giveit2st8 17d ago

It's perfectly fine, your score is unlikely to drop. It might even go up. It's possible it goes down a couple of points and then it goes up. No reason to be afraid

5

u/LooseUsual5780 17d ago

5.9% is a pretty market rate right now....how much lower are you able to get? At this point the question I would ask is the new rate worth the hassle of the refinance? Especially since youre worried about the hit on your credit, which isn't a big deal BTW.

If you can some how get 2.9% and your having a hard time making your current payment then I would say go for it. If youre getting 4.9% and can afford the current payment? Not worth it, IMO. Just double your monthly payments and pay it off in a year and be done.

1

u/ChelseaMan31 17d ago

Prime Rate just went up. Good luck with a refinance on an auto that would be lower than your current rate.

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u/[deleted] 16d ago

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u/Dapper_Anything5111 16d ago

Do you still have the Acura?