Refinancing My Auto Loan During Last Year of Payoff

by sophie
(carmel)

Question: I want to refinance my auto loan and I am in my last year of paying it off. I have $7000 left to pay off on my loan which was originally 20,000. Can I do this and what do I need to do if possible?


Answer: Hi Sophie,

Your first step will be to find a lender to work with that handles refinances. If you have above average credit, take a look at up2drive.com. They handle refinancing nationwide and are a division of BMW Bank, so they are definitely legit.

Another option - one I really like, but they don't have lenders in all areas - is to use MoneyAisle's Reverse Rate Auction.

If they have lenders in your area this is a great way to go as you'll have a bunch of lenders competing for your business. It's quick to run an auction and all you need to start one is a general idea of your credit score.

You can get your Free Credit Score! here.

They work with a lot of credit unions which are ideal for refinancing as their refinance rates are typically the same as their normal finance rates. Credit unions will also be a little more flexible if your credit is not the best.

Overall refinancing your auto loan is a simple process as the bank takes care of most of it. It shouldn't cost you anything to refinance and if it does it should be a small fee for titling.

Let me know how it goes and of course, if you have any additional questions.