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Publish Date - January 06, 2022

Author: Dale Peterson

Categories:   Tips & Insights For Car Buying    Auto Loans & Financing    Refinance To Save   

Auto Financing and Refinancing Debunked

The car financing market constitutes a significant market proportion for American consumers' financial services and loan products. Moreover, automobile financing is the third-largest class of household debt for U.S. consumers, after student loans and mortgages, with approximately one hundred million car loans totaling over one trillion dollars in outstanding debt.

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The car financing market constitutes a significant market proportion for American consumers' financial services and loan products. Moreover, automobile financing is the third-largest class of household debt for U.S. consumers, after student loans and mortgages, with approximately one hundred million car loans totaling over one trillion dollars in outstanding debt. It is important to note that an automobile may be the biggest purchase ever made for consumers that do not purchase a home. You will also need to know that to buy your car, you will probably require an auto loan - and this can be a significant aspect of your financial situation.

When making a purchasing decision, it is vital to understand all you can about the auto financing process. An excellent way to start is with a finance guide that gives you a good understanding of the auto loan process. Many other items to handle are how interest rates play a role in securing financing for an auto loan.  In addition, trade-in value, payment options, down payment, and length of your loan terms are helpful things to know upfront as you begin your car shopping process.

As such, we will try to debunk the finance mystery to assist you in navigating the intricate process of automobile financing and refinancing. The goal of myAutoloans.com is to empower you to compare multiple financing options with just one application. Yes, it is done with the assurance that if you apply and get up to four loan offers, you can select the best option for you.

Automobile Financing

Almost ninety-three percent of car buyers take out loans to purchase a new or used automobile. Ninety percent of American households are car owners, and over eighty percent and fifty percent of new and used vehicle purchases, respectively, are financed through an auto loan.

There are two methods of financing automobile purchases: direct and indirect lending. Direct lending is where you apply at one site, then another, and then another to get quotes for your car purchase. This process is very time-consuming, and you have to re-enter all of your personal information to get an offer. These offers are always subject to change if you try to take them to a dealership.

The best alternative is to go to one site, get multiple direct-to-consumer loan offers that let you select which offer is best for you. Select the one that works best for you, and you are now in a powerful position when you go to a dealership to buy the car you want.

Conversely, indirect lending is dealer-arranged financing, where your lender finances the purchase through a dealership. Dealerships mark up any loan offer obtained, so you may not get the best interest rate available. That is why millions of car loan seekers use myAutoloan.com as their first stop in the car buying process - pre-approved auto loan financing offers.

Auto Refinancing

When refinancing an automobile, you exchange the existing credit with a new credit offer. It involves paying off the current loan using a new loan from a new lender with lower interest rates, and the process comes with wide-ranging outcomes. Often, people refinance their vehicles to save money, although there are also other goals. You can refinance your car to reduce monthly payments, lower interest rates, or extend the term length of your loan. myAutoloan.com gives you the options you are looking for to obtain the best terms possible.

Regardless of the refinancing reason, it is critical to comprehend the possible outcomes, and they may include the following:

  • Lower monthly repayment: monthly payments can have an immediate effect on household income - ideally, they will be offered with lower interests, extended loan terms, or both
  • Lower interest rate: creditors can reevaluate your credit score and grant you a relatively lower rate of interest upon improving your creditworthiness
  • Repayment period: refinancing will assist in changing the terms of the current loan repayment period to lower the monthly payment amount.
  • Removal of co-signers: you may wish to remove or add co-signers to your automobile loan, and refinancing is the simplest way to do it because you are awarded a new loan with new terms.

Auto Financing Challenges

In the car financing process at a dealership, you get very few options, including the amount of credit, loan duration, trade-in value, extended warranties, and the amount of down payment.

Often, it is usually a one offer situation, and you either take it or leave it. All these affect the cost of credit, and hence, the total cost of the transaction. Even though the interest rate might be negotiable, your credit score, vehicle type, and lender requirements are critical considerations.

If you have a higher credit score, you are likely to pay lower rates because of the low risk of default. You will likely pay relatively lower interest rates when purchasing a new car because the collateral value is reasonable and predictable. However, the fact that you face many choices regarding auto financing decisions and the type of car purchased can compound the process complexity and be very stressful.

Regardless of the situation, you will have to decide which choices you receive about auto loan financing or auto loan refinancing. Unfortunately, the process is complex for car purchases because you consider multiple factors and terms simultaneously. In some cases, you may not be aware of the total costs of the transaction, existing financing options, or lack of negotiation abilities.

For instance, you can negotiate numerous financing aspects, such as loan terms and interest rates. These negotiations can be challenging when the effect of loan terms is not instantly transparent or alterable during the process. For all applicants who wish to take out a car loan or car refinance loan, myAutoloan ensures that they can talk directly with the lenders offering them a genuine loan offer. Almost 4,000,000 auto loan seekers have used myAutoloan during their car purchasing journey. It is essential to realize that you have choices between as many as up to four lenders competing for your business. Approval is all accomplished before you even step on the dealership's lot. You can now be a “cash buyer" from the very start. You can assure your financing will be in place with no hassle in the penalty box (dealer financing office).

Why use myAutoloan.com to finance your next auto loan?

At myAutoloan their job is to find the best affordable auto loan for you. Enter your desired monthly payment amount, using one of the calculators mentioned above, the APR you can afford, and see the loan amounts broken down by the length of the loan. Once you find the formula you are looking for, you can move forward to receive the auto loan you want. With their secure and speedy online application, you can be matched up to four trusted national lenders, and then…..The Choice is YOURS!