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When should I refinane my auto loan?

I purchased a vehicle in December 2010 with very little credit history. Total purchase price was $14,900 with $1,900 down. I’m not sure what my actual FICO score was at the time but I had 0 installment credit history and only 2 credit cards that had been opened for about 2 years each. Plus, another 3 small student loans totaling $12k. Only one late payment on my credit history due to Microsoft renewing my Xbox live account without any notice. Needless to say, I didn’t get a very good interest rate (just under 12%) at the time of purchase. After 6 months of payments, the balance of the loan is about 11,500 now since I’ve been paying nearly double the minimum monthly payment of $297. I checked my credit score for the first time in over a year and according to Experian, it currently sits at 707. FYI – I have 6 hard inquiries on my credit over the last 2 years because I had my credit run 4 different times during the vehicle purchasing process which I know was a mistake. The Finance director at the dealership I purchased this vehicle through mentioned it’d be best to wait a year or a year in a half before I refinance. However, I think there’s obviously a conflict of interest there.

When is it best for me to refinance since I only have about 6 months of installment credit?

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2 Responses to "When should I refinane my auto loan?"

  1. Common Sense says:
    Ummm, 12% isn’t that bad for “very little” credit. If you’re paying double your effective interest rate is much lower anyway. I wouldn’t bother with a refi.
  2. Huntsman says:
    I would let it be. .
    When you get more financially stable, just pay extra towards the loan to pay it off early.

    Note: Any inquiries done in a 3 week window count as one.
    This is done to allow a customer to “shop around” for a good rate.
    Those 6 inquiries did not lower your credit.
    The new loan or credit issued lowered your credit

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