My bank is offering to take over my auto loan which sits at 10.5 % interest. for a rate of 8.45 % however they want to sell me life/disability insurance for 20$ a month on top of it over a 48 month term. the loan is only for 9,800$ this seems like a awfully high amount to pay monthly when I'm only 26 years old with good credit and in good health. Would I be better to try and get private insurance? my current auto loan does not have insurance on it.
$240/yr on an average balance of $4800 or so (with a very short term declining balance like this, a back of the envelope calculation is an average $4800 balance) This is a great deal. For the bank. Almost 5% more cost to you. You have two choices you can be polite and tell them “no thank you” or just tell them where to stick their loan offer. Your choice.