I’m currently in the process of refinancing my 2016 Honda Civic. Currently have ~$11,870 left to pay. Current APR is 6.1%, 54 months left to pay.
New loan is offering 4.24% APR over 48 months. Plus gap protection ($895) and a $300 service fee. I can drop the gap coverage as I’m pretty sure my insurance already covers me for a total loss and I wouldn’t be buying a car more expensive than the one I currently have.
But doing the math (which could be wrong) I’m coming out with a total cost of $13,262 for the new loan, but actually $13,561 with the service fee. Total cost of my current loan is $13,600.
Am I missing something? If this is right then I don’t want to go forward with a new loan to save $40.