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Thought I Was Saving $200 a Month With a 72-Month Loan, Then My Buddy Did the Math in a Target Parking Lot
I financed a 2021 Civic last year and the salesman talked me into 72 months because the payment was $60 less than the 48-month option. Last Tuesday my buddy Matt and I were loading groceries into my trunk in the Target lot on Route 9 and he asked how much I still owed. When I said $19,400 he just stared at me and said, "Bro you're gonna pay like four grand in interest alone." I went home and ran the numbers and he was right, I'm throwing away almost $4,000 just to keep a lower payment I don't even need. Has anyone here actually refinanced with a credit union and gotten a rate low enough to make it worth the hassle?
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terrywalker1mo ago
Refinancing still means you pay interest on whatever is left, and you already ate the worst of the depreciation plus the front-loaded interest on those first payments. If the rate drop is only a point or two, the fees and the new loan term can wipe out most of what you think you're saving. Run the actual payoff number with a credit union before you get excited, because $4,000 sounds bad until you see what a refi really costs you.
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