Auto refinance loans have become more popular than ever before. With the economy dragging, consumers are looking for ways to save as much money as possible each month.
Auto refinance loans are an exceptional way to do just that...Save Money! In fact, if you were able to reduce a 72 month auto loan by $60 a month, that would equal over $4,320 in savings.
Call me crazy, but that's some serious money!
The best part about auto loan refinancing...
Consider refinancing, you'll thank yourself the next time you make your, much smaller, monthly car payment.
Below I'll show you two excellent sources to refinance your auto loan. Keep in mind, your credit score will play a big factor in determining what lender will give you a loan and what type of lower rate you can expect.
Not sure what your credit score is? Get your free credit score
There are multiple reasons to refinance your car or other auto loan, but one of the most common reasons is to lower monthly payments by refinancing the car dealer finance profits out of your payments.
Yes, car dealerships profit when they arrange financing for customers and this profit can lead to you overpaying $20, $30, even $60 or more per month to cover their profits. That's a lot of money wasted...
Refinancing an auto loan is typically an easy process and you should not be charged to refinance.
On occasion a lender will charge a small document preparation fee, but these fees are becoming less common.
The only other fee you may encounter would be a title transfer fee which is paid to your states Motor Vehicle Division. This fee will vary from state to state, but usually runs between $5 and $65.
Examples of Savings
Here's a couple of examples of the money that you could be saving with auto refinance loans. What a difference a few % points makes...
|Loan Amount - $22,000|
|Loan Terms||Orginal Loan||New Loan|
|Term||60 Months||60 Months|
SAVINGS - $42.45 each and every month
or $2,547.00 over the 60 month loan!!!
|Loan Amount - $31,000|
|Loan Terms||Orginal Loan||New Loan|
|Term||72 Months||72 Months|
SAVINGS - $57.94 each and every month
or $4,171.68 over the 72 month loan!!!
Take a look at this very simple, but effective auto refinance calculator to compare up to 4 different refinance loans at once.
What You May Need
These "may need" items are usually for auto refinance loans where customers have some credit issues. FYI...lenders have tightened up recently and even with better credit don't be surprised if they ask for proof of what you've stated on your application.
Sources for Auto Refinance Loans
MyAutoLoan.com is an excellent source for finding low rate auto loans. In fact, as of this writing they have lenders offering rates as low as 2.79%. On top of low rates, they will give you up to four quotes from competing lenders, so you can choose what lender works best for you. Definitely check them out and apply today - "Auto Loan Application"
The second source for refinance auto loans allows you to make lenders compete for your business. You'll have credit unions and banks compete in a "Reverse Rate Auction" to earn your business.
Visitors have had great success in lowering their rates through Money Aisle. They have hundreds of lenders in their network, but they don't have lenders in their network nationwide.
It's fast to run an auction, and fun to watch the rates drop, so definitely give it a try. Run your very own Reverse Rate Auction Now!
Refinancing is a fairly simple process and you now know how to refinance car loans, what documents you'll need and where to apply.
That being said, you may still have questions. If you do, you can read some frequently asked questions here: refinance my auto loan, or you can simply scroll down to ask your own.
Take a look below to see refinance questions from other visitors...
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