Why Car Loan Refinancing Will Save You a Money - OpenRoad Lending

Why Car Loan Refinancing Will Save You a Money

Saving money with car loan refinancing is easier than ever. Interest rates are low and you can decrease your monthly payments by refinancing your current car loan. Searching out and choosing an online lender to help is also easy but be sure to check out their customer reviews. No lender will have perfect scores but if they have a high and consistent rating then they are most likely legit. 

Car loan refinancing can help you get a better interest rate, change your term, give you added benefits, and all at low or no fees. Most car refinancing is only available if you move your loan to an entirely different lender. When you refinance, the savings add up quickly and you can use the money you save to pay off other debt or make a long awaited purchase.

If you got your car loan at an interest rate that is high, then car loan refinancing is likely the right choice for you. Even with poor credit, you may be able to get a better rate simply because interest rates are lower today than they were last year. A good rule of thumb is the 1% rule. If you can lock in a rate at least 1% lower than your current rate, then that can be a great deal. One percent, over the long haul, can save you thousands of dollars over the life of the loan.

There are stipulations you must fit into in order to qualify for car loan refinancing. Usually the original loan must be with a different lender than the one you are working with for your refinance. Most lenders require the mileage to be less than 100,000 and most lenders will not refinance commercial vehicles, motorcycles, or non personal use cars. 

The process of car loan refinancing is similar to when you took out your original car loan. Shop around for a refinance just as you should for a first loan. You might look for better interest rates, low or no fees, and other benefits. Lenders might offer gap coverage, which is padding for your car insurance. Or they might offer mechanical coverage for when your vehicle breaks down. A refinance offers you all the best of the current lending world. Lower your monthly payments with a better loan on your car.

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