Publish Date - September 04, 2019
Author: Staci Bailey
Best Tips to Use When Refinancing a Car Loan
A common problem that many car loan shoppers face when purchasing a car is that they get locked into a high-interest auto loan. This usually happens because the consumer fails to shop and secure a low-interest rate loan before they shop for a car – unfortunately they instead decide to accept the finance rate offered by the auto dealer they’re doing business with. It is a mistake to not thoroughly research what car loan rates of interest you qualify for before completing your purchase. Why? It could potentially leave you paying far more for the car and the car loan than necessary.
Stay on Top of Your Credit Score
One of the best tips for finding the most economical car loan possible is finding out what your credit score is in today’s market. By knowing your credit score and how prospective car loan lenders might look at your overall credit rating, you can acquire a better understanding of what rates you qualify for before you initiate a purchase. Shopping is smart so take the time to research. If you made the unfortunate mistake of taking a car loan before without researching your options, then knowing credit score after the fact can help you find a suitable refinancing loan option with a lower rate and potentially better auto refinance loan terms. By refinancing your auto loan, you will see that you can save both interest and get a lower payment immediately.
Find Out What Your Car is Worth
Knowing what your car is worth is key to finding an attractive car loan refinance option or car loan refinance offer. A potential auto-refinancing lender is going to need to have an adequate equity stake in your vehicle in order to offer you an attractive loan rate. If you owe more on your car than what it is worth, then you might find it difficult to qualify for a refinancing car loan at all, as the prospective refinancing lender will not have adequate equity to work with. The best option is to find an online lending platform that can offer you more than one refinance offer. By having multiple refinance loan offers for your car gives you a choice as to what lender can best suit your refinancing needs.
The best and most trusted way to discover the real value of your car is to use a valuation service like NADA Guide, Edmunds or the Kelley Blue Book valuation tool. Some websites offer free services that help to evaluate what your car is worth by using a three-tiered estimation model of low, middle, and high figures. TrueCar might also be a good option when you are trying to fin out what your car is worth. When using any valuation tool be sure to enter the details about your car as accurately as possible, especially when it concerns the condition of your car’s interior and exterior. It is also important when using these servicing tools to make sure that you enter your actual VIN (if requested) and the exact mileage figure for your automobile.
Aim For the Best Interest Rates
When you are shopping for a car refinancing loan, the most obvious tip would be to review multiple loan offers before you select the first offer you receive. Many consumers do not understand how to read their credit report correctly and will often make the mistake undervaluing their credit standing – make sure you get your credit score. In many cases, you will be pleasantly surprised by what type of car refinancing loan you can qualify for, especially if your credit score is solid and you have a tremendous amount of equity within your automobile. Again, using a multi-lender platform like myAutoloan.com, you can compare up to four offers for refinancing. You really have nothing to lose by shopping for the best loans available, so be sure to start with a multi-lender provider that offers you more than just one quote.
Compare Refinancing Loan Rates and Terms
When applying for a car loan Refinance or refinancing your current car loan, be sure to compare loan rates and terms. Every lender is going to have a different view bases upon their lending requirements. Find the one that best fits your needs. There are many websites online that have a longstanding reputation for offering their visitors quality refinancing offers from reputable lenders. If you are ever in doubt about a specific refinancing loan, check out the reviews and go with your instinct – there are many great lenders in the marketplace that can save you money on your car loan refinance. Use their tools to learn more and understand how the process works. Be patient and good luck.