Refinancing your existing car loan is a great to save money. There are a lot of us who have gone to dealerships and financed our cars the old fashion way, through the dealer. If you fall into that category, you probably paid a higher interest rate than you should have. Refinancing your car loan can save you a great deal of money over the life of the loan and start putting money back in your pocket each month. Here are a few simple steps to help you through the process:
1. Do your homework: As with any loan obligation, it is important that you get organized and do the research necessary to ensure you are getting the best deal possible. Pull out your existing loan documents and identify the term, current interest rate and all the pertinent information related to the car (ie: year, make, model, vehicle identification number – also known as VIN). This information will come in handy when comparing to new refinance offers.
2. Get a payoff: Contact your current lender and get a payoff on your existing account. You will need this information when you discuss refinance options with a new lender. It is helpful to get a “10-day” payoff so there is some time to complete the new loan process.
3. Find a lender: The internet offers several options for consumers looking to refinance their existing car loan. Most online lenders offering refinance will allow you to apply and get a loan decision in a matter of minutes. From there, to complete the refinance process only takes a few days.
4. Start Saving: If you do the above, you will be saving money in no time. Refinancing is an easy process that could save you hundreds of dollars over the loan. In some cases, consumers save upwards of $100 per month off of their existing loan payments.
You should not be intimidated by the task of refinancing your car loan. It is really an easy process that takes very little time to complete. You can find out more about refinance and complete a refinance application at OpenRoad Lending.