back to articles | April 06, 2020 | Dale Peterson
Categories:   Tips & Insights For Car Buying    Auto Loans & Financing    Refinance To Save    The myAutoloan Difference
Tips to Refinance Your Car Loan
Car owners that struggle with their auto loan monthly payment are usually locked into a bad agreement. That is especially true if you did not do your homework before hand. Refinancing a car loan is one of the many ways to mitigate this common issue and it’s easier than you think to get better financing terms. In our current market, with pressure to provide for our family, refinancing could be a game changer. Although refinancing won't correct the mistake of the previous agreement, it is a necessary step to resolve payment issues and put you back into control. By getting the best deal upfront, you can balance how much your payments will be with an improved interest rate. It is easier than you think so let’s get started.
What Makes A Good Car Loan?
When you refinance your car loan, there are a couple of things you should look for. Most of the items below point to an auto refinance loan that is customer focused. Prioritizing your money is the general idea of an auto refinance. If you can stick to the items in our list that follows, the better your chances of getting a great auto refinance contract with lower interest rates and monthly payments.
Accessible tools – One of the first things you should look for is the availability and usability of tools made for refinancing a car loan. These tools, such as PAYMENT CALCULATOR or an INTEREST RATE calculator give you great planning tools. These calculators can be used for all auto financing situations. As you seek information we suggest using the myAutoloan.com website to provide all of the necessary tools.
Financing websites that don't provide a way to access these options will always put the consumer in a delicate position. When you are in the new/use auto purchase mode, that means you will have to rely on the dealership. At that point, you lose all the control of the financing as the sales team will haggle with you just to get a final price of the auto. Then you spend another 3 hours trying to get financing. If you go that route for financing, you will be right back in the same financial spot as you are now.
Clarification of the Terms – When the contract language is too hard to understand, then it hurts both sides. The idea of refinancing a new or used car loan is to get you away from bad contract language and high interest rates. Terms, payment options and penalties should be clear or in layman's terms. Any part of the new contract that seems complicated should be explained in full by a trained associate. If anything is unclear, then the contract should never be signed and you need to move on..
Low to Medium Qualification Requirements – For a lot of people, the original barrier to obtain financing for a car loan was already high. When you think about refinancing your car loan, why should that same barrier be even higher? We’ve talked to many of our applicants and have found our website provides all the tools you need and actually matches your needs with up to four national lenders.
myAutoloan.com has no fees, no hidden costs, and lets you deal directly with up to four lenders that you can choose from. Everyone worries about their credit getting dinged when putting in multiple refinance applications. Thankfully, that is not how the system has to works. Matching an applicant with a lender is considered a smooth process, and won't drop your credit score because all inquiries into credit count only as one, thus your credit is not lowered in most cases.
A Low Interest Rate: This is of course the goal of auto refinancing. If the interest rate that you are paying will always have added basis points, added by the dealer. Then you pay more per month and your total payments will be larger than if you were to obtain a direct loan. Finding the right balance with APR and the monthly payment amount is key, and may be favorable on one end but not on the other. Remember that refinancing a car loan takes the balance that you owe on your current auto loan and rolls it into a new loan, with lower rates and lower monthly payments.
Refinancing Your Car Loan
The process is simple, smooth and supports up to four top tier lenders for you to compare. Sometimes there is even an option to get refinanced with lower rates from the original lender, but you won’t know until you try. The language for a refinance contract is a lot different than a normal loan, so pay attention to the details. Since the old loan gets paid off by the new lender, it is vital to stick to the repayment plan. An auto loan refinance should be taken just as seriously as the original loan. Good credit helps, but will not be the gatekeeper to getting the best deal possible. Your new monthly payments should align with your current financial situation. There is no catch, and it is up to you and the lender to meet eye to eye. Refinancing your car loan is very easy when your both are on the same page and provided with lower rates and payments.
New Vs. Used
There is a clear advantage when you refinance a car loan for a vehicle that was purchased new. It has less miles and will have more resale value at the end of the contract (and since your purchased from a dealer, it is marked up). You will recoup more money from a sale after paying off the refinance loan. For used car owners, resale value and top mileage will be different. The good news is that auto loan refinance is also available for used cars. One of the worries is that a used car with a bad history may be ineligible. By providing the correct information needed for a new refi contract, you'll know whether the car is qualified for a refinance loan. Apply to see how easy it is and know that you do not have to take an off, you choose from up to four which is best for you.
There is no reason to suffer through a contract that slowly destroys your financial freedom. myAutoloan.com is a great place to get started with refinancing a new or used car loan. Take advantage of the resources and tools provided to get the best experience. When you find the right lender, it will be the beginning of a much brighter future.