back to articles | March 07, 2023 | Dale Peterson
Categories:   Refinance To Save
Automobile Refinance Loans
Many car owners will keep the same car loan in place on their vehicle until the loan is paid in full or until they trade in their vehicle. However, you may have heard you can lower your monthly car loan payment through auto loan refinancing efforts.
Refinancing Your Car Loan
Many car owners will keep the same car loan in place on their vehicle until the loan is paid in full or until they trade in their vehicle. However, you may have heard you can lower your monthly car loan payment through auto loan refinancing efforts. You can actually refinance your car loan today and find savings through a reduced monthly payment. However, some are not pursuing this option because they don't believe they can afford to. That assumption is incorrect. With a closer look at what is involved in refinancing a car loan, you can actually afford to refinance your car loan.
Cost of the Loan
Regardless, if you apply for an auto refinance loan, most lenders will make offers for you, knowing that they are competing for your business. The offers they make are real and are based upon the information you provide, so make sure your input is accurate. In most cases, the cost of refinancing your car loan will be rolled into your new loan if and only if there is some cost. This means that, most likely, you will not need to come up with any money out-of-pocket in order to refinance your loan. The goal is to save money and reduce your monthly costs and the overall cost of the loan.
Amount of Your Current Loan
Some people put down a rather large down payment when they bought their vehicle. Others, however, may have financed the entire cost of their vehicle purchase. Still, others may have been upside down on their previous vehicle, and they may have rolled some of the amount owed on their last vehicle into their new vehicle loan. When refinancing your auto loan today, your current loan amount owed will need to be reviewed. While some lenders may be willing to finance 100 percent or more of the sales price on a vehicle purchase, most lenders will not provide financing for 100 percent of the current value of the vehicle on a refinance loan. Not a deal breaker by any means, but it’s worth finding out if you can save some money.
When you apply to refinance, you always have the opportunity to talk directly with all the lenders that provide you with a real quote for your refinance loan. Well, you can, and they will call you to verify the information you are seeking to refinance only after you submit your application. Ask them directly with any questions that you may have as you are talking directly with one of the possible four lenders making you an offer. They are competing for your business!
In most cases, a car owner who has been making monthly payments on a car loan for a year or longer will be able to refinance the total amount owed on their vehicle. The idea is to lower your monthly payment and reduce the interest you need to pay. If not, consider waiting a few months to pay down your auto loan balance further before refinancing.
Most people will be able to qualify for an auto refinance loan, and most will not have to pay any money out of their own pocket to do so. Further, the savings associated with refinancing a car loan can be significant. Take time today to use an online auto loan calculator (see below) to explore the savings possibilities in more detail and consider getting a full quote from an auto lender. With the monthly savings available to you through refinancing your car loan, your financial situation may benefit significantly through your refinancing efforts.
Some people are concerned about the costs associated with refinancing. However, because the costs of refinancing an auto loan are typically rolled into the loan, and the resulting monthly payment is almost always lower than what you are paying today, refinancing your auto loan may be a smart move to make.
Use these handy tools to get the latest info and tools to help you refinance your auto loan.
Interest Rate Estimator - Find out what type of interest rate to expect. Use this tool to enter your zip code, the loans type you want, and your credit information -- then simply click calculate to see rates in your area.
Loan Amount Calculator - Calculate how much you can borrow with the myAutoloan.com loan amount calculator. This tool is provided for your convenience. The actual amount you can borrow may differ depending on the actual terms of the loan you are seeking.
Payment Amount Calculator - Calculate how much your payment will be given a specific loan amount. This tool is provided for your convenience from myAutoloan.com. The actual amount of your payment may differ depending on the actual terms of your loan.
Good luck, and here’s to finding the right auto refinance loan that works best for you!