Refiancing

just posting so NO ONE feels like they are the worst off!!

toyota financing: my rate is 13.25 and payments of $449 a month for FIVE YEARS!!!

someone please tell me there is anything, something i can do.

i had bad credit score but it will go up soon because something that was in collection will be removed totally in a couple of months.

i don't understand this stuff.

car was $19000 and with the interest i am gonna end up paying a total of $27000.

but won't i, no matter what, always owe toyota $27000?

what and how would getting a lower interest rate by refi do anything for me?

im no expert on financing, but as soon as the collection note on your report goes away, either talk to Toyota Financial, or your bank or someone you know that is an accountant about refinancing cause you'll probably save some, if not a lot, of money b/c youll get a lower APR most likely w/o that collection note on your report... thats my $.02

but if i were you, i would talk to a financial person at the dealership you got your tC at about refinancing or your bank...

i got 4.9 for 60 mo. through Navy Federal (since my dad agreed to co-sign just so he could see if i could handle both car & insurance payments, including any maintenance/mods i do...). payments are ~$385, but i was only able to put $1500 on the $21000 sticker.. ill probably try to refinance around august of next year (after i get a good chunk of it paid off)

Originally posted by starlitewalker@Oct 28 2005, 07:39 PM
but won't i, no matter what, always owe toyota $27000?

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No, TFS uses a simple interest method with their loans. Any excess paid will be applied to the principle, and the principle goes down with each payment. So if you could afford to pay more than the monthly, you could pay it off for less and sooner. You don't owe a total of $27000, you owe the principle + interest calculated daily - the payments you make.

And for those who previously said TFS doesn't apply excess payments to your principle, you should check with TFS. I did. They told me the payment is applied to interest, and the balance of the payment is applied to the principle. So, I've doubled my payments to reduce time to payoff and reduce interest paid. It works. The only thing that looks funny is they extend your payment due date so as time goes on, you "Next payment due" will be further and further into the future. All the while, the principle is getting knocked down much faster, and at the end the sum of the interest will be a lot less.