Vehicle Refinance – An Easy Way to Save Money on Your Car Payment - OpenRoad Lending

Vehicle Refinance – An Easy Way to Save Money on Your Car Payment

The notion of refinancing your vehicle is a relatively new one with vehicle refinance becoming more prominent over the last 10 years. Refinancing your current car loan is an excellent way to save a great deal of money over the length of your loan term.  The primary reason this option has become so popular is because dealerships markup interest rates that are charged to customers who finance the purchase of the vehicle they are buying.  


The process of refinancing your vehicle is a fairly simple one and is similar to refinancing a mortgage. However, in general the auto refinance application and process is much shorter and easier to complete when compared to a home mortgage refinance as things like inspections and appraisals are usually not required. There are a few tips you need to know as you enter the vehicle refinance process. The first and possibly most important is to locate the right lender. Most auto loan companies offer refinancing options, so be sure to look for one with the best rates and customer service.  Also, before you apply, gather all the information you will need to make the process go smoother.  Things to have handy include: your current loan information such as the lender name, current interest rate, payments and vehicle make, model, mileage and VIN.


Next, you will want to determine the term length that is right for you. Whether you are choosing to refinance your vehicle because you cannot afford your current payments or you simply want to decrease your interest rate, you can choose the combination that’s best for you.  A longer term will mean lower monthly payments, but you will also end up paying more interest. If you want a lower payment this maybe the best option for you.


The next tip when considering a vehicle refinance is to choose an ideal payment date.  Would the first or the middle of the month be better than the last day of the month? Whatever the case, most lenders will likely be able to work with you on the date that your payments are due. In summary, refinancing your vehicle is a great way to save hundreds or even thousands of dollars over the life of your loan.

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