Publish Date - December 31, 2018
Author: Dale Peterson
Is Refinancing an Auto a Good Idea?
- Having trouble making your monthly Auto Refinancing payments?
- Paying a ridiculous amount in finance charges on your auto loan
- Was your credit bad when you got your auto loan but better now?
- Did you agree to a high auto loan interest rate to get the auto you wanted?
If you answered yes to any of the above questions refinancing your auto loan might be a good idea. You might get a lower rate or payment by refinancing.
Do You Currently have High Auto Loan Finance Rates?
People get stuck with high auto loan finance rates for more reasons that just bad credit. Buying new auto is exciting! People get so caught up in the experience they can sign auto loan papers without thoroughly reviewing them. By the time they realize how high their auto loan's finance rate is, it's too late! However, if you have had a blip in your credit in the past, you would have also paid a higher rate. Getting a direct offer for auto financing for your next auto purchase can save you one heck of a lot of money.
Unfortunately, many people do become high auto loan finance rate victims because of bad credit. Hey, bad things happen to good people. It could have been an illness, being laid off of work, or even a divorce can have a negative effect on a person's credit. A negative credit rating can result in paying incredibly high finance rates, especially at a dealer. Most people don't realize how much their credit report affects the finance rate they receive for their auto loan. Understanding how expensive a bad credit rate can be makes many people work hard to improve their credit before their next auto purchase.
In the meantime, if you have worked to improve your credit, you are a perfect candidate for a refinance auto loan. If you're paying high auto finance rates, consider refinancing your auto loan. Auto loan refinancing (link to page 81) is a great way to save money, pay off your loan more quickly or reduce your monthly payments.
How Does a Refinance Auto Loan Work?
To refinance your auto loan you'll pay off your current auto loan, with another auto loan with a lower APR. What this does is save you money each month on your payments and it reduces your total cost of the loan compared to your original loan. Your finance rates drop, your monthly auto loan payments drop and you'll pay off your balance more quickly which will save you money.
Use the Internet to apply for a refinance auto loan. By applying for a refinance auto loan with several different lenders you can see what kind of savings you can expect. Getting a market view of what the rates various companies are offering and being able to select one that best suits you is outstanding. Having choice is empowering and saves you time and effort. Just apply! The Internet makes it easy. One site to try out is myAutoloan.com. Getting multiple refinance auto loan offers is empowering and easy. By completing the secure online auto loan application form, you could have approvals back within minutes.
Auto loan Refinancing with Bad Credit
Don't worry if you have bad credit in the past. Refinancing your auto loan is still an option. Someone took a chance on you once! You're likely to find another finance company willing to help you. Especially if you have worked to rebuild your credit since you purchased your auto.
Don't rush in to a new refinance auto loan though - establish a history of on-time payments. It only takes about 4 months of on time payments to have a positive effect on your credit. Once you've made about six months worth of payments on your current auto loan you can begin looking into refinancing your auto loan.
Auto loan calculators can show you just how much you would save if you refinanced. Just plug in your current auto loan terms and then compare it to your new terms. A change of as little as 1% can make a huge difference. See for yourself! Go online and utilize a payment calculator like the one at myAutoloan.com to try out various finance rates and auto loan terms. Notice how payment amount can be reduced? Check out the difference in the cost of your old loan and the new refinance loan. You just might save a bundle!