my interest rate is at 11%, paying 326/month for 2010 honda fit sport.
i got a letter to refinance my payment for as low as 3.99% at 88.71/month.
customer service representative says i can drive away with a brand new vehicle for lower payment from what im paying right now.

is this a scam? should i stick with my car or trade in for newer model?


EDIT: i believe i already financed about 15 grand and still have 12 grand left to pay. yes, i got ripped...big time...f'in thieves...
it was my first vehicle with no credit history so i didnt know what i was getting myself into.

 

All you can do is go to the dealer and give it a shot. My Mom just bought a 2011 Sport and got 1.9% interest for 60 months. That 88.71 must be like per $5,000 or something.

 

11% is WAY too much to be financing a car for.

 

I agree- Do the math, but it sure seems like you would save some $. Can't hurt to check out your options.

 

You need to look at all the terms.

-length of loan
-down payment
-monthly payments
-interest rate
-any fees?
-trade-in valuation if you get a different car

Get all of it in writing prior to making a decision (ask for an all inclusive "out-the-door" quote). Make no commitment prior to having all the info.

Try using this to give you an idea of your payments after you trade in or refinance: Estimate Payments - the Official Honda Web Site

 

its not a scam dude they are trying to sell you a new car and they know that you *may* qualify for a better rate so your payment would go down and you can get a new car but remember you are starting a new 5 or 6 year payment cycle just keep that in mind

I would say with the really strong resale value of fits if they can get you a 3.9 rate then you can get a 2012 for a lower payment… sell yours privately to pick up a extra $2k...