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Refinancing B's Car

July 20th, 2016 at 07:50 am

We're at the end of B's car lease and were required to pay a $15000 residual balloon payment on the car, which is due on the 5th August. We don't have that much money available so need to refinance.

I did a bit of research on the best loan interest rate and found 8.5%.

He got a phone call from the finance company asking what he wanted to do with the car and then a letter. As he is pretty busy with work and I handle the financial side of things I called the company back.

They said their current rate is 7.99% so I am happy with that. It will be a 2 year loan term and will come to around $750 per month. We currently pay $926 per month so I will put the difference towards his credit card debt.

While he had the business it was pretty much always maxed out. I'd make inroads into paying it down and then he'd get short paid and need to use the card to get by, it was a never ending cycle. Now he is an employee like me he barely uses it so I think if we pay the amount we've saved ($150-$175) onto that card it will be paid off around the same time the car is paid off. Exciting stuff Smile.

His motorbike loan will be paid off in the February of 2 years time and then the car and credit card will be paid off in the August.

We will have a spare $1200 per month then, which is very exciting. (I'm a bit scared to say too much more, plan too much more, in case things get jinxed).

I have to send some signed documents back before they draw up the actual contract. They say approval should happen tomorrow and all paperwork finalised next week, so it's all going to be cutting it fine.

4 Responses to “Refinancing B's Car”

  1. ceejay74 Says:

    All great news! Good to not think too much about that future budget surplus, but it's an excellent incentive.

  2. VS_ozgirl Says:

    Thanks ceejay Smile

  3. FrugalTexan75 Says:

    Sounds like some good financial happenings!

  4. VS_ozgirl Says:

    In the long term definitely! Completely debt free except for the mortgage is definitely something to look forward to Smile

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