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Is It Worth the Trouble to Refinance My Car Loan?

admin — Thu, 25 Sep 2008 18:19:12 +0000

There are two situations where it could make sense to refinance my car loan. One is the bad situation where you can’t afford the monthly payments and are trying to avoid missing payments and ending up with a repossession. The second is the better situation where you simply want to take advantage of lower interest rates and lower your monthly payment.

In either situation the solution to refinance my car makes perfect sense. Just be sure to review the terms of the new loan to make sure it is actually to your benefit before going ahead with the refinancing.

Refinance my car – I can’t afford the payments

When you simply can’t make the monthly payments on your car loan anymore, refinancing may be the only way for you to avoid a repossession. Refinancing can lower your monthly payments in two ways, first by lowering the interest rate on the loan and secondly by extending the duration of the loan. By combining both you’ll get the greatest monthly savings.

Of course, you may already have poor credit and a bad credit score. This will keep you from being able to secure the lowest interest rate on your car loan and you’ll have to refinance at a higher rate. You can still lower your monthly payments though by extending the length of the loan.

If you’re in this situation you’ll want to take the time to research several lenders and find the best rate possible. Just because you have poor credit doesn’t mean you can’t find a better deal when you refinance my car. Get several quotes, compare the terms and rates and choose the best deal you can to lower your payments.

Refinance my car to lower the interest rate

If you’re just looking to take advantage of lower interest rates then you’ll have much more flexibility in finding and negotiating the best deal possible when you refinance my car. Chances are in this situation your credit score is good and finding a lender willing to offer you lower interest rates should be pretty easy.

Again you’ll want to get quotes from several lenders to find the best possible interest rate. You also want to make sure that your savings aren’t eaten up by excessive additional fees such as closing costs, administrative fees and other miscellaneous charges since this defeats the purpose of refinancing to save money in the first place.

No matter what your motivation is refinancing my car loan is a simple and quick process. You simply need to take the time to get the quotes and to pay attention to the terms being offered to you to ensure you get the best deal. Whether you’re trying to lower your interest rates to take advantage of current conditions or if you need to refinance to avoid a repossession, refinancing your car loan is a smart move.

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.

Cheap Car Loan

admin — Thu, 18 Sep 2008 17:44:05 +0000

With people trading cars in faster than ever getting a cheap car loan is an important thing to most people. Even if you don’t change cars faster than you change shirts you would still want to find a cheap car loan when you’re ready to trade in your reliable old car for a wonderful new model. The best advice I can give you when searching for a cheap car loan is to take the time to research and compare loan options from several auto lenders before committing to a loan. With so many lenders out there competing for your business it’s actually not too hard to find a cheap car loan.

Now on to the details of finding a cheap car loan:

Do your auto loan research upfront

Like I said, there are plenty of lenders out there that want to finance your next car purchase. It really is a buyer’s market, especially with the current economy and you’re not obligated to finance your car loan with any specific lender, so feel free to refuse an offer if you don’t like it. You really need to get quotes from several auto lenders and then compare them side by side to see which one has the best terms and rates. Look at everything, including the fine print. This may take a little time, but the results are well worth it. And if you go online to search for cheap car loans you can speed up the process substantially.

Attain and keep a good credit rating

A good credit score will make it easy for you to negotiate the best possible interest rate. If your credit rating is currently a bit weak you may want to wait a few months before buying a new car and take that time to strengthen the credit report.

Increasing your credit score does take time, but you can do it. Making sure all of your payments are on time is the first step towards a higher credit score. If you can also pay off some loans or credit cards that will help, but don’t close the accounts after paying them off, especially if they are older accounts. In general you’ll find that the higher your credit score the lower your interest rate and the cheaper your car loan will be.

Have a large car loan down payment or trade-in

It makes sense that the less money you borrow the lower your monthly payments will be and you’ll also pay less in interest over the life of the car loan. Always do your best to get the most possible for your trade-in and even better have cash to put down on the new car purchase. In some cases you may benefit from selling your old car privately rather than trading in and using that cash as a down payment. This will depend on whether or not you can get more money for the car privately, but it’s worth a shot.

Get auto financing before you go to the car dealer

You dealer will offer you financing, usually through the finance arm of the auto company whose car you’re buying. Now, this offer may be fine, but in most cases you can get better rates from a credit union or bank. If you already have auto financing before you go car shopping you’ll be in a much stronger position to negotiate financing and even the price of the car itself. This way you’ll get both a cheap car loan and a cheaper car price.

Overall, getting a cheap car loan isn’t too difficult if you’re willing to put in some legwork of your own. Take the time to shop around for a car loan and get prequalified and next time you go car shopping you’re sure to get both a cheap car loan and a cheaper car price.

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.

Auto Loan Bad Credit Online – Is It Worth It?

admin — Mon, 08 Sep 2008 00:17:22 +0000

Getting an auto loan bad credit online is definitely the quickest and easiest way to get an auto loan, but is it necessarily the best way to get a car loan? Some think that it is the best way and others disagree. In the end only you can decide if the auto loan bad credit online is the best option for you, so consider the following carefully.

There’s no doubt that getting an auto loan online is faster than the traditional method. Simply find an auto lender, log on and fill out the basic application in minutes to get an almost instant quote. This is a perfect way to apply for a car loan in these busy times when many of us just can’t get away from work and family obligations long enough to go to a traditional bank and go through the lengthy auto loan process. Online auto lenders are available 24/7 and you can log on to apply anytime day or night and get a quote in less than a day.

Another way that auto loan bad credit online is superior is the anonymity that it provides. We all know that bad credit is embarrassing to say the least and having to meet face to face with a loan officer can be a stressful situation if your credit is poor. When you apply for a bad credit auto loan online there is no reason to feel embarrassed or as if you are being judged. Plus you can apply online even in your pajamas! A small thing I know, but kinda cool none the less.

On the other hand, many experts assert that you have a better chance of acceptance if you apply for a bad credit auto loan in person. Actually this applies to any kind of loan. They claim (truthfully) that the loan officers prefer to speak with you face to face so that they can look you in the eye and appraise your body language and demeanor. They want to know if you appear to be honest and sincere.

These face to face meetings also make it easier for you to tell your side of the story and give you the opportunity to show how serious you are in your need for the loan and your intention to pay it in a timely manner. You will have the opportunity to let the loan officer know about any extreme circumstances or emergencies that may have led to your past credit problems. We all know that illness, divorce and the loss of a job can lead to bad situations for good people all the time. If you apply for an auto loan with bad credit online you’ll never have the chance to explain the reasons for your bad credit like you will when meeting in person with a loan officer. And loan officers are human too. They are much more likely to show compassion and empathy if they see you and speak with you in person.

In the end there are plusses and minuses to both traditional and online auto loans. You know your situation best and you know how you would handle an in person meeting with a loan officer so only you can decide which course is best to take. A traditional bad credit auto loan may give you a slight advantage in securing the loan, but an auto loan bad credit online gives you anonymity, is faster and can also get you a better interest rate in some cases.