I just purchased a new car a month ago at 3.2% APR. This was the best rate I could get at the time.
I currently have an offer from a bank to refinance at 2.25% APR. For a $25k auto loan, this translates to nearly $700 in savings over 5 years. I confirmed that there are no "strings" attached, in that there are no pre-payment penalties, etc.
Is there any explanation for why banks would refinance at rates lower than a new loan? Or did I just not look hard enough for a good rate on my original loan?