Sorry for the throw away account.
My husband and I took out a loan on a brand new 2018 Jeep Wrangler, because neither of us had active credit at the time (previously paid off auto loan, no credit cards, no other loans) we could not get a competitive rate and settled for the offered 11% APR at the time, with the intention of filing for refinance through our lender, or my husband's bank after generating enough positive credit to get us back on the radar. (Joint credit, both our names are on the loan and title.)
We've been making our payments just fine, and the time has finally come to refinance. We spoke to our lender (USAA) and after running our credit, came back with a much more acceptable 3% APR on the remainder of the loan (~$24,000), however it comes with one catch. The old loan came with total loss reimbursement for the replacement value of the vehicle (~$30,000), the lender made it known that the new loan will not, as they do not carry that option and we are grandfathered in with the current loan.
I don't know how to price out that sort of thing, or if that is the same thing as Replacement Cost insurance. I know the difference on the APR is about $4000 for us over the next 3-4 years of car payments and that's not an insignificant amount.
Is it still worth taking the lower rate? Is there somewhere we can calculate the difference?
Thanks in advance.
Submitted April 21, 2020 at 06:24PM by Kellys-Throw-Away https://ift.tt/3alDpGo
