Multiple car loans Question. Refinancing a good idea?

My fiance and I have 3 car loans. Each through a different bank. One for 19,000 one for 13,000 and one for 9,000. The car with 9,000 left needs to be sold off. Can I refinance all 3 car loans into one payment? And if so, can I sell one of the 3 cars. Right now the banks have the titles so I can sell any. If I refinance the cars into one loan will the bank that does the refinancing accept 2 car titles to allow me to sell the other off?

Multiple car loans Question. Refinancing a good idea?

If you can get a cheaper interest rate by all means yes do it.

Multiple car loans Question. Refinancing a good idea?

Each one of your car loans is a %26quot;secured loan%26quot;, with the car as collateral. Thus, the only way you could consolidate is to either:

1) get a home equity loan for the total amount, pay all of the vehicles off, get title to each, and then pay off the home equity loan.

2) get an unsecured loan for the entire amount, which may be cost prohibitive.

The banks won%26#039;t consolidate into a single loan because if you default what do they do, take one vehicle or both? BTW, doesn%26#039;t it make you nervous to have $33,000 in car debt, and possibly more vehicles than people driving?

Also, you can sell the $9,000 car off, and then you just pay off the bank when you close on the car - the buyer gives the bank the $$ and the bank gives you the title (to transfer to the buyer) all at the same time. You could do this with any of the vehicles, unless they sell for less than they%26#039;re owed on, and then you have to pony up the difference to sell, since the bank loan has to be satisfied before they%26#039;ll cough up the title.

Multiple car loans Question. Refinancing a good idea?

The answers are yes, no and no. Yes, you can refinance into 1 loan. No you would not be able to sell one car, since the bank would not take 2 titles for the loan. The loan would need to be secured by the vehicles. The only way they would take 2 vehicles is if the book value of one of your cars was equal to the amount of two. Since you have different banks financed all three, I doubt any of them are.

If you need to sell one vehicle, what I would suggest, if your credit is good enough, would be to get a signature loan for the total amount and pay all 3 off. The problem you face in this would be whether your credit is good enough. If it isn%26#039;t then you will have trouble. If it is then the bank will not frown about giving you a loan for a higher interest rate than your car is now.

A warning, signature loans run about 11% if your credit is above 740, below that it to about 700 and it will be about 13, below that and you are looking around 19% or more. Do the math and if you can work it, then do it. I would apply more to the principle monthly to pay it off sooner, though because of the higher rate.

Multiple car loans Question. Refinancing a good idea?

Sometimes I bother people by not answering the question they want answered.

This might be one of those times. One item of some importance is how much money you make because qualifying for 3 car loans and being able to sustain payments are different things. Also the amount you owe on the cars doesn%26#039;t necessarily reflect the actual value of the car - which is what the banks care about.

You also don%26#039;t mention any details about the cars. If they have already depreciated much, you may owe more than they are worth and will not be able to refinance a car for more than it is worth.

The short answer is that if you sell one of the cars, then you are in a better position to refinance - but only refinance for a lower interest amount, NOT to make only one payment.

Multiple car loans Question. Refinancing a good idea?

There are some useful tips here.

Multiple car loans Question. Refinancing a good idea?

You can refinance all of the cars and then sell any one of them. The bank will require all of the titles but that will come from the banks that now hold the loans on them. When you refinance them then you can sell each or all if you want and pay the loans down. You just have to sell them and give the bank the amount owed on each of them and they will release the titles as you go.

The bank will let you know how you can do this. Do not be afraid of banks.....they are people too. Just ask them what you want to know and they will help you. That is what their business is. They are not bullies. They are there to help not to hinder.