<< Go to HFC, get the loan, and pay the juice - as my friend Terry calls it.

Then go back to the bank, apply for the loan .

They asked - what do you own? He said the car. They gave him the loan at normal rates - and he paid off HFC.>>

Just make sure they do not have a prepayment penalty provision.

I arrange loans for people as part of my daily grind. You'd be surprised how that little provision makes a difference in your interest rate.

The problem with Marshall's Boss' scenario if there was a prepayment clause in there somewhere would be something like he has to pay about 6 month's interest of some other fee before the bank will sign off on the vehicle. That prepayment fee will often exceed the savings on getting a loan with better rates. Evaluate and look at the fine print.

One other alternative for those in the US is to take out a loan on your house. That way the loan can be tax deductible. Car loans are not. Of course discuss with your tax person concerning the tax consequences and or advantages.

Hell, if you were Terry K. Hoover, I'd personally loan it to you in a heartbeat.

BenT

He was so proud of that story - how some knowledge of the system allowed him to get what he needed.

I can't say if it's true, but it was an interesting story. I didn't ask my boss the hard questions though - he's my boss, after all, and I know what side of the bread my butter is on, if you know what I mean.

I'd not have loaned the money if I was the banker - because to me - HFC owned the car until it was paid off.

But it might just work with a banker that really wanted to help - but had to have something to work with.