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Hello,

In June 2005 I got a 2005 Hyunday Accent. The loan I got at the time was 7.35% over 7 years (don't ask me what I was thinking first off buying a new car and then financing it for so long!) from ScotiaBank. I have no ties with scotia other than this loan.

Is it possible to "waltz in there" and demand that the loan interest be decreased to something more reasonable? (4.75ish?) I was thinking that my argument would be that I could simply take a loan from a different institution and buy out this one so they might as well give me a better rate than lose my business.

Any thoughts?
-Dave
 

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I have no idea whether car loans can be re-negotiated, but if you're already 5 years of the way through, you might be able to "suck it up" and just pay off the balance.

It might seem painful parting with a lot of cash at once, but its great to get out from under the weight of those monthly payments.
 

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Any thoughts?
-Dave

My first thought is that since you are already 5 yrs in the majority of the interest has already been paid ('course I don't have any numbers to go by), so getting a lower rate might not save you as much as you think.

The flip side of that is, since you have already paid most of the interest, the bank wouldn't be losing much if they agreed to lower your rate.
 

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I dont think you will do any better than 7ish right now for a car loan at any bank.
I just did a BMO homeline mortgage and set a portion of equity aside just in case I decide to be an idiot and finance a brand new car. I was told 7-8 was what a car loan goes for these days.
 

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i agree with bean. 7% is a good rate for a car loan. you might be able to use a PLC and pay off the loan to get a cheaper rate, but over all it won't make much difference, especially in relation to how much that thing has depreciated already...
 
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