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.

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.

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.