Car Refinance Loans - Is a Refinance Right for Me? - OpenRoad Lending

Car Refinance Loans – Is a Refinance Right for Me?

Car refinance loans can save you lots of money every month. But they are not the right move for everyone. The ideal candidate has to fit into a narrow slot of qualifications. Some of the restrictions are mileage, amount still due on loan, type of vehicle, and who the original lender is. But if you qualify, a refinance on your car may mean extra cash every month that you can use for other stuff. All time low interest rates offer you more flexibility and greater freedom.

Everyone wants to save money, but car refinance loans won’t work for everyone. Lenders only refinance if you are coming to them from somewhere else. Your current loan must be with a different lender than the one with which you wish to refinance. Be sure you know who your lenders’ affiliates are as well. Refinancing lenders want new business. Lenders may also require that you do not have a commercial vehicle or one that is used for business. Sometimes only certain types of vehicles are refinanced. Look around at different lenders they all have differing restrictions. You should be able to find a lender that will work with your situation.

Most car refinance loans require a low mileage. Less than 75,000 miles is ideal.  Lenders also want your car to be under six or seven years old. Car refinancing is based on the amount you still owe not the value of the car. Knowing the value of the car is always helpful, but you do not need to have your car appraised in order to get a refinance. How much you own on your car is really what determines if you will save money. Lenders require that you have at least $7500 still due. Some put a limit on what you owe as well. Owing $7500-$10,000 is the best range for car refinance.

You might consider using an online car refinancing calculator. These help you to know whether the numbers add up the way you want them to. If you have less than a year to go on your repayment it usually is not worth the refinance. You might actually spend more getting a refinance than saving money in some situations. So consider carefully. You don’t have to worry about equity in your car, so it doesn’t really matter how much you have already paid. It only matters how much you still have to pay and how long it will take you to pay it.

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