| Feb 27, 2012
There is a lot of talk in the media and by several financial
advisors that seeking an auto refinance may be able to save you several hundred
dollars a year. The problem is while many people are suggesting people seek a
refinance on their car loan, very few people are explaining the process.
Refinancing a car loan is a fairly simple process that involves only a few
steps. Here’s a look at how you can begin the process required to obtain a
refinance on your existing auto loan.
The first step to obtaining an auto refinance is to ask your
current lender for a payoff balance. A payoff balance is what the lender will
accept to consider the loan paid off in full. You will need to obtain a payoff
balance so you know how much you will need to acquire from the new lender in
order to pay off your current loan. Depending upon the lender it may take two
to five business days to provide you with the payoff balance. Once you have
obtained this information you can move forward with the refinancing process.
The second step to obtaining an auto refinance is to
complete the application process for a new car loan. The application process can be
completed inside the bank or online. You may be required to submit the payoff
balance that you owe on the car, two forms of identification, proof of income,
credit scores, and references. Some lenders may require that you submit proof
of ownership of the car, and the VIN number. If you are applying online you may
be able to receive a new loan quote in as little as 24 hours. However, if you are
applying inside a bank it can take up to five to ten business days to receive
notice of whether or not you have been approved for a new loan.
After you have received the quotes for your new car loan you
can compare and contrast what is being offered to you and determine which one
offers you the best savings. It is a good idea to get three or four quotes to
ensure you are getting a wide range of quotes. Once you have decided which auto
refinance option will save you the most money, you must complete and return the
required paperwork. The paperwork will take two to five business days to
process, and then the new auto loan is yours.