Whats the catch to refinancing a auto loan?

I've been thinking a bout refinancing my auto loan. But whats the catch. I've got a 16.59% auto loan . I've made my payments on time for the last 2 year on time. When i got the loan i had really bad credit now i'm in the 630-660

Whats the catch to refinancing a auto loan?
There are different reasons people will refinance a car loan. The three main reasons are to remove a name %26lt;co-signer%26gt; from the loan, pull possible equity from the loan, or most common, to lower the current monthly payment. Here is a brief explanation of trying to lower your payment:





If you have 3 years left to pay a car loan with a payment of $388 per month and a balance of $12,000, you might take out a new loan for the $12,000. However spread the balance over a 48- month term, then depending on the interest rate, you can lower your payment to $310 per month. The disadvantage to this method is you now have 4 years to pay on the vehicle instead of 3, which also means you will pay more money in interest over the term of the loan. Your second loan will sometimes have a higher interest rate than the first one, so before you refinance, make sure you understand the additional interest you will pay in relation to the lesser monthly obligation. Good luck and I hope this helps.
Reply:You should be able to get something better than 16%. That really is bad. Anyway, 1st start at your bank %26amp; run it past them. They may want a little down payment, but since you've made your payments on time, that's a good thing. I would only ask for a 24-30 mo loan at the most. Most banks will not loan you the amount of money you need if that amount is more than what the car is worth now. Be sure to show them all your papers %26amp; where the title holder is now. Banks have seen it all so do not be embarrased about your situation. The bank wants your business %26amp; money. If the bank says no after they run your credit, don't go from bank to bank trying to get a loan. All those requests for credit actually lower your credit score. G'luck there!
Reply:No catch. Just go to a local well trusted bank and appy for a car loan. Only good can happen. If they turn you down you had nothing to loose.
Reply:If you get a better interest rate than you are currently paying (which you should be able to do with a 630-660), then there really is no catch. It should save you a good amount of money over time. Check out this site to compare auto loans...


http://www.e-wisdom.com/loans/auto.html