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Return to the Car Refinance Learning Center 5 Essential Car Loan Refinancing Tips Many consumers get nervous when sitting face to face with a banker or loan
officer about to either grant them credit for a big ticket item or decline them
for their request. When you decide to finance or refinance with an online
lender, that anxiety goes away. Now you are dealing one on one with a computer
keyboard. This article is to provide you a few tips that you can keep in mind
to make your auto loan refinancing experience a good and productive one. 1 - Make Sure the Refinance is Worth It There is definitely a point where the cost of refinancing your car loan will
be more than the benefits, and you need to know where that point is. So what is
the magic number? Well, in the end it will depend on how much you’re currently
paying and what you new payments will be. But generally speaking if you owe
less than $7,500 you probably should not bother with refinancing. While you can
still see some savings, it probably will not be enough to make a big impact on
your pocket book. To gain the maximum savings on a refinance car loan you
should be financing more than $10,000. Most lenders will not even allow you to
refinance anything below this amount. 2 - Keep Your Information Consistent This may sound like a simple thing, but you will run into fewer problems if
you remember this: the information on your new loan has to match the
information on your old loan. Keep the same spelling of your name and
everything else. So if you go by Dave normally but put David on your previous
loan, make sure to put David on the new loan as well. This is to avoid titling
errors and questions from your current lender when they receive a payoff check
for your new loan. Do not forget about middle initials either. 3 - New Loan Amount One of the beautiful things about refinancing is you sometime have options
to add in an Extended Service Contract or GAP coverage that your do not have on
your existing loan. In make cases, you can get this added protection without
your car payments increasing. Keep in mind that the lender will not allow you
to finance an amount that is greater than a certain percentages of the actual
value of your vehicle so there are some circumstances where you will not be
able to finance these beneficial products. OpenRoad also offers Painless Dent Repair to take care of those unwanted dents and dings in your car to get it looking like new again. 4 - Give Accurate Information This one should be obvious, but you’ll want to make sure that all the
information you have on the vehicle is accurate and up to date. The lender will
want to check the value of the car to make sure that it fits within their Loan
to Value (LTV) guidelines. You will need to provide the current mileage on the vehicle
along with all of the equipment on the car like power windows, cruise control,
etc. All of these options will assist the lender in determining the actual
value of your vehicle and determine the amount they will allow you to finance.
The LTV can also be a factor in determining the interest rate you will be paying on the
refinance car loan. 5 - Watch Interest Rates and Fees Remember that the whole point of car loan refinancing is to save money. So
when you see your new interest rate, fees, and the new monthly payment you need
to make sure that you’re actually saving money. The amount of savings will of
course depend on the size of the loan, but in most cases, consumers can save
hundreds of dollars over the life of their loan. OpenRoad Lending does not
charge any application fees or any hidden charges for you to refinance your car loan. The process is simple and you could be on the OpenRoad to savings with just a
few clicks of the mouse. 
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