When it comes to your finances, it is important to have a game plan before entering into any type of transaction. When it comes to cars, many consumers are not aware that you can actually refinance your car loan just like you would your home mortgage. Auto refinance is relatively new and is gaining in popularity because it is generally much easier than a mortgage refinance and helps customers save hundreds and sometimes even of dollars over the life of their loans. The following refinancing car loan tips will be helpful to anyone looking to save money.
Should I Consider Refinancing My Car Loan?
For most, the answer is yes! If you financed your last vehicle through a dealership you are probably paying too much for your loan. Other factors include; if you have owned your car for some time, your job has changed where you are making more money or you have improved your credit score then you may qualify for better loan terms than you got originally. Even if nothing has changed, there is a good chance that the dealer charged you more than the “buy rate” or the amount of interest you were approved for. These are all great reasons to see if an auto refinance makes sense for you.
What Kind of Savings Will You See?
The answer will depend on several factors such as how much did you originally finance, what was the length of time you had to repay it and what is your current interest rate. It is not uncommon for consumers to save as much as $100 per month off of their existing car payment by refinancing – same car, just a different lender offering you better terms.
Be sure to look for a lender that offers refinancing and an online car refinance application. That way you can apply and find out your savings almost immediately. In fact, some lenders will get you approved and your existing lender paid off in just a few days. That might allow you to actually skip a payment putting more in your pocket.
There are many reasons to look into an auto refinance and hopefully these refinancing car loan tips have been helpful. In the end, a little research into the online lending process, one like OpenRoad Lending’s, could save you a lot of money over the life of your loan. The little bit of time it will take will be well worth it.