Dear Terry, I purchased a 2007 SUV about eight months ago for business purposes. I am paying $611 per month and still owe about $29,000. I wondered if I could, or should refinance it so that I can remove the co-signer, plus lower my payment. When should I do it and how long of a term should I look for? Please advise. -- LeciaDear Lecia, I don't see how you can significantly reduce your monthly payment at this point. Assuming you have good credit, financing $29,000 over 72 months -- which I wouldn't recommend -- would drop your payments about $45 a month, but would add hundreds of dollars in added interest to the loan. My advice is to keep the vehicle until you've paid it down to where you have some equity and then trade it in for something cheaper. This week•More new-car buyers using cash•Should I refinance new car now?•Only cosign if you co-own•Car columnist helps fix financial mistakesIf you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter advertisementRelated Links:7 best off-to-college carsNational auto loan averagesWhat changes auto loan rates?Related Articles:All new cars for 20105 steps to 'clunker' dealTake the 'cash back?'
Dear Terry, I purchased a 2007 SUV about eight months ago for business purposes. I am paying $611 per month and still owe about $29,000. I wondered if I could, or should refinance it so that I can remove the co-signer, plus lower my payment. When should I do it and how long of a term should I look for? Please advise. -- Lecia
Dear Lecia, I don't see how you can significantly reduce your monthly payment at this point. Assuming you have good credit, financing $29,000 over 72 months -- which I wouldn't recommend -- would drop your payments about $45 a month, but would add hundreds of dollars in added interest to the loan. My advice is to keep the vehicle until you've paid it down to where you have some equity and then trade it in for something cheaper.
If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter
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