Last week, my credit union that I have my auto loan through, which is located in Idaho, sent me a letter saying that they would allow me to skip my July auto payment if I wanted to, with the exception of a $29 "processing fee". Normally, I would not do this. Obviously, this is just one way for them to make money. But hey, we could use the extra money to put toward our tires fund, which has plateaued at $241. And, we intend to pay the auto loan off with taxes this coming tax season (balance is currently $2,900).
Then, just yesterday, I got a letter from my current credit union (whom I have my checking, savings, and a credit card through). This letter stated that I was pre-qualified for a $20,000 auto loan, 60-months, no payments for 90 days, and at only 3.49%. Offer expires August 18th.
Just the offer itself is awesome, because it is a bit of a pat on the back to me for doing so well, when we have so little to work with.
So here is what I am going to do. I will skip the July payment (sans the $29 fee) with that credit union, then refinance the car through my current at the beginning of August, and skip three months of payments.
Like I said - normally, we would not do this. But the car desperately needs tires. I think it's a pretty good deal. And most of all, I am proud of my credit score.
Refinancing Car & Skipping Payments
June 27th, 2012 at 04:32 pm
June 27th, 2012 at 05:00 pm 1340816441
Have you researched the cost of adequate tires for your vehicle? I suggest you check with wreckers in your area as they often have excellent tires at cut rate cost.
If you can make even one payment directly to the principal over the 90 days you will have made progress in debt reduction. I know you plan to clear the $ 2,900. but often life's challenges get between us and our best intentions.
June 27th, 2012 at 05:36 pm 1340818595
And no, there are no fees for the 90-day no-payment period, and no fees on transfers. There is a 0.50% increase for those who do not wish to enroll in automatic payments, however, which may be something that will effect me.
I have researched the costs, and the cheapest tires that I am willing to get are around $430 after installation costs. I don't want to get a tire that is below 600 UTQG rating, and the tire I am looking at has a 700 rating, and is cheaper than those with a lower rating, and has a great warranty and reviews.
And before even signing up for the refinance, I will be speaking with someone at my credit union to be sure that there are no hidden fees. The small print is all lined out pretty well in the online review process, so I am not worried. But I will be making sure. Heck, my credit union is literally only five stories down, and one-hundred yards south from me.
June 27th, 2012 at 05:43 pm 1340818992
Best wishes!
June 27th, 2012 at 05:45 pm 1340819158
June 27th, 2012 at 06:05 pm 1340820330
August 5th, 2012 at 09:23 pm 1344201828
Jerry
August 6th, 2012 at 12:21 am 1344212494
We got our tires (for $20 less than we thought it would end up being). The Goodyear shop did not try to sell us crap, unlike the Goodyear shop has back where we are from. They simply asked if I wanted anything additional. Since the previous tires wore perfectly (surprising for a rebuilt vehicle!), we opted out for any additional services.
August 6th, 2012 at 04:50 pm 1344271832
Sadly, offering a link after purchase but other readers might place importance on the failed UTQG rating. UTQG was created to give consumers a tire buying standard but failed miserably. The manufacturers set their own standards, there is no uniformity no matter the acronym.
Buyer-be-ware remains the main factor in buying tire for your vehicle.