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Home >> Lending >> Vehicle Loans
Refinancing Car Loan by Cancelling Extended Warranty
I bought a Jeep in May 2009. One month later found I had cancer, then in Jan 2010, I lost a job I had for twenty years. When I financed it, the loan included an extended warranty. If I cancel the extended warranty, can I refinance the loan to lower my payment?
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 If there is sufficient equity in the auto, that is what is owed as compared to what the car is worth, and if this or another lender will refinance it for you, yes. Different lenders will make loans for different times depending on the age of the auto. That is, a new car may be financed for up to six years, a two year old for four years, etc. It also depends on whether the contract allows cancellation of the warranty at this point in time. It won't cost you anything to call and ask first about the cancellation and then about a refi to lower the payment. Be aware too, that your income and ability to repay the loan will be scrutinized as it is different than when you got this current loan.
Published on BankingQuestions.com 7/28/10
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