I buying a used car and wanted to know how does...

[Lifeispolitical]

...refinancing work? If someone can help me, so I don't make the wrong decision I would greatly appriciate it. Thanks

[King Felix Style]

its quite simple. say that used car is for $5000 and you have $2000 downthen you want to finance the rest $3000.The dealer will contact the bank and check to see if you're approved. if you are approved, then you will speak with the bank loan officer and he/she will discuss the details with u.an example of a loan could be $3000 for 3 years at 16% interest.

[georock1959]

Lets say your buying a car from your buddy... for $1000 . The car is financed at the bank. You must go and apply for a loan to pay off the balance of your friends note. This all proiding you do not have cash to make the purchase. One other thing---if the car is not worth $1000. The bank says they will give you a loan of $750 you have to come up with $250 unless your buddy reduces to $750. Now if your friend ows more than the $1000 he has to come with the cash to sell the car to you for $750.