Car Loans » auto refinance

Why You Want to Refinance Auto Loans

admin — Tue, 07 Oct 2008 20:21:39 +0000

There are many reasons that people have to refinance auto loans, but the obvious and best reason is that it saves us money. What better reason could you want. And when times become tight because of financial hardship, a poor economy or a bad financial decision it can be great to keep some extra money in our budget to handle the unexpected. When you refinance your auto loan you basically give yourself a raise each month.

If you are having trouble meeting your current loan obligation then refinancing auto loans can help get you back on track with a lower, more affordable payment. You may wonder how taking out a loan can help you save money, but really it’s simple math. You use the new refinancing loan to pay off the existing loan. The money you are saving is the difference in the interest rate from the old loan to the new loan. If you extend the length of the loan you can also save additional money. This is how you lower your monthly payment and keep more cash in your pocket where it belongs.

If you want to get approved for an auto refinance it’s not hard at all. The requirements are that you have already been paying on the current loan for 1 year and the value of the car is over $7500. You should obviously not have any missed or late payments on your current loan either.

You also want to take into consideration your current credit score as that will impact the interest rate on your loan. U.S. citizens can get one free copy of their credit report each year from all the major credit reporting agencies.

Once the basics are out of the way you can go ahead and apply for an auto refinancing loan. There are many online sites that can help you to refinance auto loans. They all provide free quotes which will help you to compare the loans and choose the one that provides you with the most benefit.

Once your loan is approved they new lender will use the cash to pay off your existing loan. The new lender gets the title for your car from the old lending company and they will then communicate with you regarding your payment plan. All of this is transparent to you and all you’ll need to do is wait for the letter from your new lender with your new payment amount and the monthly due date of your payment.

When you refinance auto loans you benefit from lower costs for your car and more cash in your pocket. There are no points and minimal fees when refinancing your car so there’s really no reason not to do it if it can save you money. Once the refinance is done you’ll be able to enjoy the small monthly raise that you’ve given yourself.

Benefits and Requirements of Car Refinancing

admin — Thu, 25 Sep 2008 16:04:44 +0000

Even if your credit is poor it’s easy to qualify for auto refinancing. And refinancing your car can help you for several reasons. Best of all, thanks to the broad reach of the internet finding a lender to refinance for you is quick and easy as well. Here are some benefits and requirements of refinancing your auto.

Benefits of Auto Refinancing

There are several reasons that people have for refinancing their car loan. Naturally the top reason is to save money each month on their auto payments. When you refinance you can lower your monthly payment, get a better interest rate and either reduce or extend the duration of your loan.

Those who had bad credit when they bought their can and have since improved their credit score will benefit the most from car refinancing. With a better credit score you can expect much lower interest rates on your car loan. A drop of several percentage points on your loan can translate to thousands of dollars of savings over the life of the loan.

Auto Refinancing Requirements

While it would be great if you could refinance at any time, there are certain requirements that need to be met in order to qualify for car refinancing. First of all, the current value of your car has to be greater than the amount you still owe on the car loan. If you owe more than the car is worth this is called an upside down loan and lenders will not refinance this type of loan.

If you’re in this situation and want to refinance then you should do all you can to reduce the amount you owe on the car so the loan is no longer upside down. This will mean you will need to pay more than your monthly payment for some time.

Two additional requirements when refinancing an auto loan is that the car be less than 5 years old and that the new loan must be for not less than $7500.

How Does Car Refinancing Work?

Refinancing your auto loan is actually quite simple. First you’ll need to contact the current lender to request a payoff amount. Once you have this number you can go online to fill out an application for an auto refinancing quote. You’ll be asked for the details of the car, like the make, model and year, any extras like security systems or audio enhancements. You’ll provide them with the payoff amount for the loan and may even be required to provide them with the VIN. When you apply online for an auto refinance the approval process is instant.

Selecting an Auto Refinance Lender

When choosing a lender for your auto refinance don’t just go with the first offer you receive. Car refinancing is actually quite competitive and if you take the time to get several quotes you may save yourself even more money. Request quotes from at least 3 lenders and take the time to compare the rates and terms of each offer. Then make your decision based on the company that will get your refinancing with the lowest cost to you.

When Car Refinancing Makes Sense

admin — Thu, 18 Sep 2008 18:24:45 +0000

If you want to save some money each month then you should consider car refinancing. Maybe you didn’t know that you could refinance a car the same way you refinance a home, but you can. And if you do it correctly there are no points or fees and you can save a bundle of money over the life of the loan.

It happens to so many of us when we go car shopping that the excitement of getting into that new car takes over and our emotions end up putting us into a car and monthly car payment that’s more expensive than we planned for. Instead of focusing on saving money and getting a cheap car loan we focus on the excitement and emotional boost that we get from a new car purchase.

Interest rates will vary depending on your lender of course, but some people end up with rates in the high teens which is crazy, even if you’re financing a car with bad credit. There are simple ways to keep your interest rate down, the most important of which is to take the time to compare rates from several auto lenders. You’ll also find that the length of the loan, the amount of the loan and your credit score will have an impact on your loan interest rate.

Once you’re into the new car you do have some options to lower your interest rate and monthly payments. Car refinancing can drop the interest rate by several percentage points and save you thousands of dollars over the life of your loan. And of course you’ll have lower monthly payments which will be a help to your budget.

Think of this, a car loan for 20,000 financed for 60 months at 12.5% will cost you $449.96 a month and $6997.53 in interest alone over the 60 months of the loan. If you refinance the car loan at a much lower rate of 6.99% your monthly payment will drop by over $50 and you’ll save over $3200 in interest. Pretty good reason to look into car refinancing isn’t it? Plus you’re payments are likely to be even lower than that since you’ll be refinancing less than the original $20,000 because you’ve already been making payments on the loan.

The usual financing rate for a new car with good credit is 7.99%, but you can find lower rates on a refinancing because the loan amounts are smaller and the duration is shorter. And you’ll be able to shop around so you could find an excellent interest rate. Car refinancing is certainly easier online and it’s less stressful than the initial purchase finance at the dealership.

You’ll also want to consider the full terms of the loan. Is it possible to repay the loan early in full or will you incur a fee for doing this? Make sure you read the fine print when you’re getting quotes for an auto refinance. You should also know that you can refinance your car even if you have bad credit. You may get an interest rate that’s a bit higher than you would get with good credit, but it should still be lower than the current interest rate, especially if you had bad credit when you initially bought the car.

Car refinancing is just a good financial move. Anytime you can lower your interest rate and save yourself money you should take the opportunity to do so. Even $20 a month can make a difference and you’ll then be able to use that money for something else.

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.