Publish Date - July 08, 2019
Author: Dale Peterson
Categories:   Auto Loans & Financing    Refinance To Save    Consumer Credit    Loan Calculators & Rates    Types of Car Loans    The myAutoloan Difference
Is Auto Refinancing an Option for You?
This type of loan offer allows you to refinance an expensive or high interest rate auto loan. For many years our loan experts have written numerous articles to explain how this process works and how you can use it to save hundreds or even thousands dollars on your car. Take a minute to see if this is something that you should consider.
How it works – The auto refinancing process is similar to the mortgage refinance process, but it does not have the costs and fees normally associated with the mortgage process. Basically, you obtain a new car loan at a lower rate to replace your first loan. Ten years ago, auto refinancing was pretty rare. They were available but just not much was known about them. Now that interest rates have dropped dramatically and we continue to sit in this recession, auto refinancing has become increasingly popular. If you decide that you want an auto refinance loan, consider letting myAutoloan.com assist you in the process. It’s fast, easy and there are no fees or costs to see if you can lower your payments or reduce the APR% on your auto loan. Apply for a no obligation, no fee auto refinance quote online to see how current rates might save you some money.
How much can you save – Refinancing can save you a lot of money, if you play your cards right. For example, if you currently have an auto loan for $23,000 at 11% APR for 5 years, you’ll pay $500 a month. If you can refinance this loan payment to $400 a month, you can save $6,000 over the life of the loan! The higher your current loan rates are, the more you can save by refinancing. Many of our lenders offer auto refinancing rates around 4.75% -6% APR. Of course, it always depends on your current credit rating at the bureaus.
Who should refinance – Any individual who have an expensive auto loan or who wants to reduce their monthly payments, or lower their rates should consider auto refinancing. Consumers with expensive loans from a car dealer can save big by refinancing with a lower rate from myAutoloan. If your credit scores have improved significantly since your original car purchase, you should be able to reduce your rates which will save you money in the long run.
What are the requirements – Not all auto loans will qualify for refinancing. Since most lenders require you to have at least $7,500 due on your current loan in order to refinance, you might want to recheck and take a look at your balance. There are also common restrictions on the age of the car and the car’s mileage. Generally that means that if you have less than 70,000 miles and the car is less than 6 years old, you should have no problem getting an offer. Plus, you may need to have a credit score say 525+ or so to qualify for a competitive refinance rate.
What are the dangers – While auto refinancing can help you save a lot of money in some situations, it may not always be a good decision. If you are thinking about refinancing, be sure to evaluate if it is really going to help you out because of payment reductions or APR % decreases. Just don’t kid yourself before you really take a good look and make sure that it’s a smart thing to do. By that I mean just be aware that a refinance loan may extend the term of your car loan in order to reduce your monthly payments. This could result in increased costs over the life of your loan. So again, I’m just trying to make sure you are thinking this through so that it’s to your advantage, based upon your circumstances. For most people, it’s a no brainer – if you can save some cash, just do it!
Refinancing allows borrowers more flexibility and freedom with their auto loans and with the cash that they save. People with expensive auto loans are no longer stuck with them for the life of the loan. Use them wisely and it’s clearly to your advantage! Find out today if an auto refinancing loan can help you save money and let us help you see just how easy it can be. We would love to show you what we can do.