Need advice about refinancing current car loan

Quote from dealmunkey : So I purchased an Infiniti for $43K @ 0.9% financing for 3 years. Well the $1200 monthly car payments have taking a toll lately and I was thinking of refinancing the balance, which is at about $24K. I found a place online that would refi the loan @ 1.99% for 48 months. This would lower my monthly payment to about $800 and tack on ~$600 of interest (plus fees) to the loan over 4 years. I have about 1 year and 10 months left on the original loan. Would it be financially wise to refi?

Well what is your definition of "wise"? If you can't afford the car then sure refinance but it sucks having a car payment for 4 more years vs 22 months. From an interest rate perspective, your rates are low enough that the total interest paid over the life of the loan is not too unreasonable. If you can suck it up for another year, you'd be less than 1 year away from paying it off and I bet you'll be motivated to stick it out if you can.

FYI your new payment would be around $550 not $800.

It really comes down to whether or not you can handle the current $1200/monthly payment. If you can do it, but it would simply be "tight" (ie: no big vacations for the next 2 years), then it comes to a personal preference. If you are getting to a point where you can't pay the bill, you basically have four options:
1) Sell the car and get something cheaper.
2) Cut back on other expenses to be able to meet the cost of this car as-is.
3) Default on your payment and give the car back.
4) Refinance to a better, and more manageable, monthly payment.

I will assume that you will not be looking at #3, so you are left with the remaining three options. If #2 isn't feasible, that leaves two.

As the other poster said, I think your $800 number is incorrect. $550 sounds much more likely.

The 1.9% APR for 48 months sounds pretty good. Since it will free up $600+ dollars a month, the ~$600 out of pocket cost seems reasonable.

So your willing to be making payments on this car for 7-8 years?

Quote from nizzy1115 : So your willing to be making payments on this car for 7-8 years?

14+48 = 60. That's 5 years. Where are you coming up with 7-8?

62 months but who is counting.

Quote from PiratesSayARRR : 62 months but who is counting.

Hahah, touche. But the point still applies.

Quote from phonic : Hahah, touche. But the point still applies.

Touché, but who's checking?

Quote from phonic : 14+48 = 60. That's 5 years. Where are you coming up with 7-8?

missed the 1200 for 3 years part. I was assuming 5 years, but in retro spec that would have sounded like a high payment.

Quote from impact1400 : Touché, but who's checking?

Sorry, but I speak American. We don't have no stupid thingies on our letters. What are you? Some type of communist?

The rate of 1.99% is pretty good and who knows, rates may jump up next year, that's why I was thinking of refinancing. Things are tight now and I can continue paying the car bill, but I'm thinking about the future I guess. If I do end up losing my job for some reason and have to tap into my savings while looking for a new job, I don' want to end up losing the car also. Thanks for everyone's reply.

Quote from phonic : Sorry, but I speak American. We don't have no stupid thingies on our letters. What are you? Some type of communist?

Quote from dealmunkey : The rate of 1.99% is pretty good and who knows, rates may jump up next year, that's why I was thinking of refinancing. Things are tight now and I can continue paying the car bill, but I'm thinking about the future I guess. If I do end up losing my job for some reason and have to tap into my savings while looking for a new job, I don' want to end up losing the car also. Thanks for everyone's reply.

If things are that tight, I say go for it. Bast case if you do that is you have the option to pay it off early.