Help a Reader: To Refinance a Car or Not?

Here’s an email I recently received from a reader:

I have a financial question for you.

Currently, the interest rate of my car loan is 5.75% per year. And, I am wondering if I should refinance my car loan with a 3.99% interest per year loan that I found with my company’s credit union.

I have paid off 50% of the original loan amount, and only have ~$7,000 left to pay.

At the current rate I am paying off the loan, I will pay off the loan completely in 3 years from now. I have a good job and a steady paycheck each month, and am 23 years old.

Would it be a good financial move for me to refinance with this lower interest rate loan? Any help would be appreciated.

What’s your advice for her?

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Related articles about helping readers at my favorite personal finance blogs:
Free Money Finance – Help a Reader – Paying off a House
Free Money Finance – Help a Reader – To Refinance My Home Or Not

About the Author Jacob A Irwin

Hi folks! My name is Jacob. I am the owner and operator of My Personal Finance Journey. I started this blog in January of 2010 and have enjoyed the journey ever since. Since finishing up graduate school in Virginia in 2014, I have been working in biopharmaceutical development in Colorado. You can read more about me and this site here. Please contact me if you have any questions!

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