ok... so i need some advice from you folks out there that have dealt with the banks more and for any bankers that happen to be on here. I don't really know if this can be done or what, i'm only 21 so bare with me in my ignorance.

so, my bank is offering this whole refinance your home or auto deal going on now, and the interest rate they are offering is lower then the dealer. so either way, i think i'm going to do this, just so that i can lower my monthly payments. the deal is, i've had my jeep for 12 months, and i got 9.8% now with the dealer. the bank is offering 60 months at 7.5%. so its a good deal (i think). i wont loose those 12 months of paying, and will still get a lower interest rate (thank god my parents opened a savings when i was born. i'm considered a "valued" customer since i've been with the bank for more then 20 years. ).

so an idea came to me. how hard (if possible) would it be to convince the bank to include the price of a new set of tires and a bigger lift into the price they are financing. make it one big number. lets say i'm refinancing 30k for the jeep, and need another 6k for the tires and lift. what should i do to get the bank to refinance for 30k? tell them i need 36k or what? help me out here please. thanks.

 

You will be hard pressed to find a bank willing to finance more than the vehicle is worth. If it has a KBB value of say 25k and you only owe say 15k and you want another 5 for mods you should be ok, but if the new loan value will put you upside down in the vehicle.....good luck.....and they most likely will consider it a used vehicle and allot of banks won't finance more than 80% of value on used vehicles

Take out a second mortgage and payoff the Jeep and the mods and then write off all interest.....

 

I have a Rubicon on order and I am getting the 0% for three years through Chrysler. My dealer told me I could get a total of 130% of the price of the Jeep ??? I will find out for sure in two weeks

 

Don't finance the extras even if they say they will do it.

Think about it. You finance 2000 worth of tires and wheels for 60 months at 7.5%.

Those tires and wheel just cost ya about 2500 over the term of the loan.

When I built my house I would not finance anything but the house. Who wants to pay on a ref, stove, washer, dryer, trees, sod, ect. for 30 years.

Only finance what you have to. You may finance other things but you can get deals for no interest for 12 months at most vendors.

 

Thats right!!!!!!!!! You could try and get a credit card at 0% for 12 months. Just be sure you pay it off before the 12 months is up or they'll spank you so hard you'll be wear'in your ass up front. Words of wizdom from someone who knows.

 

I agree with Indiana JK. Especially you being young, now is not the time to rack up debt. All debt isn't bad, but I know there is a hell of a lot of stuff you want to buy, start racking it up and you'll never pay it off. Just start saving up and buy as you can. The rate you quoted isn't great either, but better than the 9.8%. I just checked both of my CU's, and they are offering 5.75 and 6.49% on newer autos.

 

"My bank" is an immediate warning flag. I don't care care how long you've been with them or how much you think they love you, check into a credit union. The reason your bank is pushing refinancing now is because next month the interest rates will be lower. And even lower after that. If you don't follow the markets (I do!), trust me: Your bank is doing this not as a favor to you, but because they want to lock folks into higher interest rate loans before they must quote lower rates. Check out local credit unions. They're far less likely to be up to these shenanigans, and they generally offer the lowest rates on loans.

Also, original question: I'd discourage taking out more loan to pay for tires/wheels. Yeah, it's cool to have all the neat things now. But, even though I paid cash for my JK, I'm biding my time on some mods, while doing others. Replacing perfectly good tires and wheels, even if not very good for off-roading, just doesn't make sense for my vehicle that's driven 98% of the time on pavement or well-groomed dirt and gravel roads. Learn to live well within your means when young, and those means will be much higher when you're older.

 

True words. You're quite lucky to have a JK at your age, I was driving a beat-up Chevy van at 21. Exercise some restraint now and you'll be glad you did when you're older. In a few years you may be looking to buy a house or something and you'll not want a huge car payment weighing you down when you're trying to get fincanced for that at a good rate.

 

Be careful with a CC. Once you do a special rate deal with a CC, don't use the card for ANYTHING else PERIOD. Issuers apply payments toward the lowest % rate balance first. In other words, you could end up paying 25% interest on that $6.95 sandwich you just bought until you get the tires and lift kit paid off in their entirety.

Check out credit unions. Always a better deal than banks. I would suggest holding off on the tires and lift kit until you can pay cash for them. But at 21, I would have done the same thing.

 

Shop around before you jump. Like others have said, that 7.5% is better than what you have now, but not good. Rates have dropped considerably in the last month. I'm seeing as low as 5% on 60-84 month loans.