Car Loans » Auto Refinancing

Top Reasons to Consider Auto Refinancing

admin — Mon, 06 Oct 2008 23:06:10 +0000

We could all use some extra money. Budgets are tight and many of our payments these days are much higher than we would like. One way to keep some cash in your pocket every month is by lowering your high car payments through auto refinancing. And the great thing is that almost anyone can qualify to refinance your auto, even if your credit isn’t spotless. There are many lenders who are willing to help you with auto refinancing. It’s one method of saving money that makes good sense for almost anyone who considers it.

If you’re currently employed at the same job for over two years you are almost guaranteed to be approved for auto refinancing. Many plans will offer you a lower interest rate without any additional money down, points or fees to be paid. If you have bad credit you can still get approved under these terms, however you should expect to receive a somewhat higher interest rate on your loan.

Any smart shopper will take the time to get quotes from a variety of lenders and then compare the offers before going through with the auto refinancing. You can get quotes from credit unions and banks, auto dealers as well as online. With interest rates currently so low auto refinancing is a very popular option among many people.

Auto refinancing however is not for everyone. If you have just a short time left on the loan it probably isn’t worth it to refinance. However, if you still have several years left on your current auto loan then refinancing can make very good financial sense. You might also want to consider extending the length of the loan to lower your payments even more.

You also need to owe at least $7500 on the car to qualify for auto refinancing.

As is the case with any loan, you should take the time to think through your options before committing to anything. Compare various loan offers and evaluate your current loan to see how much money you’ll actually save over the entire course of repayments. If possible, get the advice of an auto refinancing specialist who can steer you past any possible pitfalls in the loan process as well. Chances are, if you’re like most people you can benefit from auto refinancing.

The Right Way to Refinance Car Loans

admin — Thu, 11 Sep 2008 22:35:40 +0000

Even if your credit isn’t perfect it’s still easy to refinance car loans online. Refinancing your car loan can help you in several ways. Plus, finding online auto refinancing is so easy thanks to the number of lenders trying to get your business. The downside is that you will need to meet some criteria to refinance car loans.

Benefits to Refinance Car Loans

Car loans can be refinanced for a variety of reasons. Mostly though auto loans are refinanced to save money on the monthly car payments. When you refinance your car loan you can get a better interest rate and you can also lengthen or shorten the term of your loan.

If you bought a car when you had bad credit or even if you had good credit and your credit has since improved you can get a better interest rate by refinancing the car loan now. A better credit score justifies a better credit rate. A reduction of several percent can save you significantly on your monthly auto loan payments.

Requirements to Refinance Car Loans

Now the bad news. You will have some requirements to meet in order to refinance your car loan. First of all the cars value must be greater than the the amount you currently owe on the car loan. If you owe more than the car is worth this is called an upside down loan and you won’t be able to refinance the auto loan.

If you can, reduce the amount you still owe and then try refinancing the car loan. This will mean either increasing your monthly payments temporarily or making a lump sum payment. Two other requirements you’ll need are that the car must be less than 5 years old and the total amount still owed on the car loan must be at least $7500 although you may find some online lenders who are willing to drop this requirement.

How Does the Car Refinancing Process Work?

It’s simple to refinance car loans. First you’ll need to get the remaining loan balance from your current lender. Then, go online and find and auto refinance company and complete their online application. You’ll be asked about the make and model of your car, the model year, any options like power brakes, CD players, alarm systems, etc. You may also be required to supply the VIN on the application. The really nice thing is that online auto refinance approvals are instant.

Selecting an Auto Loan Refinance Lender

While selecting the right refinancing lender is important, it is an easy part of the process. This is because there are so many lenders online competing for your business that you can get several quotes from different lenders in a short period of time and compare the offers. Then simply accept the best one. Online lenders mean that when you refinance car loans you can now pick and choose the loan that will save you the most money.

Where To Refinance Auto Loans

admin — Mon, 08 Sep 2008 00:32:22 +0000

When you refinance auto loans you can reduce the pain of your monthly car payments significantly. There are several ways to refinance auto loans and if you follow through with the auto refinancing you stand the chance of saving yourself some serious cash. Imagine saving up to $70 a month on your car payment by going through a simple refinancing. That works out to $840 a year or a whopping $4200 over the course of a typical 60 month car loan. That’s some serious cash!

So where do you refinance auto loans?

1) Your local bank.

This can be a very good solution, especially if you’ve got a good relationship with your local bank. It’s still a good idea to do some research though to make sure that you’re getting the very best terms, interest rates and repayment options.

2) Your local credit union.

If your credit score is excellent this is a great option, however in my experience most credit unions don’t want to work with those who have any history of past missed payments or blemishes on their credit record.

3) Your local car dealer.

Some car dealers will let you refinance auto loans, but most will simply try to get you to buy a new car. While it’s really nice to have a new car it defeats the purpose of refinancing to get a lower monthly payment since it’s almost guaranteed that your new car payment will be higher than your prior car payment.

4) *BEST* Refinance auto loans online.

If you refinance auto loans online you’ll find that you have the best selection of lenders to choose from. Most people also find that the application and approval process for online auto refinancing is much quicker and easier than through offline lenders. Another positive is that online auto lenders typically use a network of brokers to match you with the best possible interest rates and terms for your situation. Finally, the online loan specialist will only pull your credit report one time to compare rates from a variety of lenders. If you try to compare loan rates from a variety of lenders on your own you’ll find that each one will pull your credit report and this can actually damage your credit score.

In closing, it’s pretty apparent that when you refinance auto loans the best way to get a good deal is to refinance online. You’ll be able to compare various lenders to get the most competitive interest rates and terms for your car refinancing and you’ll save more money in the end. And saving money is the reason you wanted to refinance the auto loans in the first place.

Automobile Refinancing Secrets

admin — Mon, 08 Sep 2008 00:24:30 +0000

In the quest to reduce your expenses one of the best kept secrets is automobile refinancing. Most of us will only think of our homes when the word “refinancing” is mentioned, but automobile refinancing can be another way to save yourself a nice sum each month.

If you’re one that hasn’t considered automobile refinancing to save some money then you should know another one of the secrets about car refinancing. Unlike the home refinance, automobile refinancing doesn’t come with closing costs or any other additional fees. Most people don’t know that because when they think of refinancing they only consider home refinancing which is usually quite expensive in fees and costs.

Think for a moment. If you finance a $22,000 car loan at 9% interest over 60 months you’ll end up paying close to $460 a month and $5400 in interest for a total of $27,400 over the life of the loan.

By shopping around to refinance the same loan at a 4% interest rate your monthly payments drop to just $405 a month saving you $55 each month or $3300 over the life of the loan. And $2900 of that is interest savings. Why would you want to pay the bank almost $3000 more than necessary? Isn’t it worth it to take a few hours to research automobile refinancing online and save that money for yourself.

Oh yeah, that’s another secret many people don’t know. Now you can do automobile refinancing online. There are no fees online either and it takes just minutes to fill out the application.

Refinancing your car online is almost always cheaper than going through the traditional route of refinancing through a bank or car dealer. So, before you consider refinancing through a bank take a look around online and see what kind of automobile refinancing deal you can find. I’ll bet you find much better rates than you would get at your local bank.

Now that you’ve found a source for your refinance try adding some collateral to the mix. By turning this from an unsecured loan to a secured loan you can drop your interest rate another couple of points and save another couple hundred dollars each year in interest charges. If you have a way to secure the loan do it and reap the rewards.

Another way to lower your interest rate is by getting a loan through an institution that you already have a lending relationship with. Credit unions are often very good for this. If you have a loan through a credit union already they know your payment history and credit record and will often be willing to offer you an even better loan based on that relationship.

Saving money through automobile refinancing is a quick and easy way to give yourself a monthly raise to your budget. These are just a few tips and tricks to save you money. Getting a lower car payment is really easy these days with the number of lenders online trying to get your business so why not give it a go.

Rather than giving your money away to the bank you should investigate automobile refinancing and see how much money you can save.