Last year I had my parents cosign a car loan for me to get the absolutely lowest interest rate available (1.24%), with the agreement that I would apply for a loan this year once I've strengthen my credit score.
Fast forward today, I applied for a "new" car loan and received their lowest possible rate of 1.49% (1.24 was a promotion they were running)
DCU is offering me continue the balance of the loan term (48 months) or start over with 60 months.
They tell me my car is worth 25,500, I have a pay off balance of 19,000.
As of now my payments have been at $400 and with the new rate, it'll bump it up a few dollars.
Is there any benefit to me extending the loan to 60 months (other than a lower monthly payment), and continue to pay $400 even though the minimum payment will be $340? The rate of 1.49% doesn't change unless I ask for something over 60 months.
I plan on driving this car into the ground.
Fast forward today, I applied for a "new" car loan and received their lowest possible rate of 1.49% (1.24 was a promotion they were running)
DCU is offering me continue the balance of the loan term (48 months) or start over with 60 months.
They tell me my car is worth 25,500, I have a pay off balance of 19,000.
As of now my payments have been at $400 and with the new rate, it'll bump it up a few dollars.
Is there any benefit to me extending the loan to 60 months (other than a lower monthly payment), and continue to pay $400 even though the minimum payment will be $340? The rate of 1.49% doesn't change unless I ask for something over 60 months.
I plan on driving this car into the ground.
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