[Carbeaux]

Doing a re-fi is certainly an option. It doesn't cost you anything to re-fi a vehicle. As for getting a second one as a daily driver, that's sometimes tough to justify. On the second one there's maintenance and insurance to take into consideration which can sometimes get you no further ahead than what you pay in gas right now. :dunno: If you re-fi, take the 4 year term to get the rate and then find an amortization table out there on the web and find out what payment you'd have to make to pay it off in the same amount of time as what you currently have left, and then make that payment. Even at the lower rate, if you're doubling the amount of time to pay it off, you're not really saving much if any in interest. Just depends on whether you decide to do the second vehicle option as to whether it makes more sense to pay in 2 years or 4.

 

[Carbeaux]

If one payment is $600 a month, and his interest difference is (as Walleme states) $12 bucks a month, he's only going to save $288 in interest over two years. Not even one month's payment, so no, he won't have it paid off in 12 months. It'd be paid off in 23 1/2 months. Actually, he might save a little more than that, so call it 23 months even.

 

[Carbeaux]

There isn't a pre-payment penalty on a vehicle loan, so doing a re-fi doesn't preclude you from being able to still pay it off in the same amount of time you have left.