My Auto Loan
Who, what, when, where, why and how to refinance my auto loan are rather common refinance questions I'm asked by both my dealership customers as well as visitors to this site.
Below you'll some of the most common refinance questions and of course, you can ask your own if you don't find the answer you're looking below.
If this is the case, then feel free to fill out the simple form below with your refinance questions
Here's what you'll find below:
Common Refinance Questions
Question - Where can I find lenders to refinance my auto loan?
Answer - There are two sources that I've found are best for handling your auto loan refinance online...
My first recommendation is My Auto Loan. They will provide with up to 4 competing quotes by filling out just one simple application. They work with lenders advertising refinance rates as low as 2.79% (as of this writing). See for yourself and apply if you like what you see. Take a look at today's rates here -> "Auto Refinance"
They look have lenders that work with a wide range of credit, but really bad credit may not get approved. They offer some excellent refinance rates if you meet their criteria.
In addition, I'd recommend your local credit union. They'll be more apt to work with you if there are some credit issues and/or if you are refinancing an older vehicle or it has higher miles.
Check out Money Aisle's Reverse Rate Auction. You'll not only find local credit unions, but other banks as well. The fun part is watching rates drop as the auction moves forward.
It's really easy to start an auction and it only takes a matter seconds. The only thing you need to know to start one is your credit score (at least a rough idea of what it is). You can get your score here - Free Credit Score!
I've found that local banks are oftentimes not a very good source for refinancing, because they tend to mark up their refinance rates and are not very competitive when it comes to used cars.
Question - I'm a first time buyer and had a cosigner to help me buy, how long do I have to wait to refinance my auto loan?
Answer - Assuming you had no credit or very limited credit at the time of purchase it will typically take a bare minimum of 6 months, with 12 months, or more, being more likely.
Most refinance lenders will still consider you a first time buyer until you've had a 12 month payment history on the car.
If you have the 12 months, Money Aisle will definitely be a good source for you under these circumstances. Credit unions are way more likely to give someone with limited credit a good loan with a good rate.
If you had bad credit and needed a cosigner, then it may take a bit longer (maybe 18-24 months) or you may need some money down to help strengthen the deal in the eyes of the lender.
Question - I have good credit, but the dealer told me I'd need to wait 6 months before I could refinance my auto loan in order to avoid penalties. Is this true?
Answer - Excuse me while I chuckle sarcastically...not at the question, but at the dealer that told you this. Definitely read your contract closely before following the rest of this answer to ensure that there is not some very unusual circumstances that I'm unaware of.
More than likely this is simply the finance manager using a ploy to get you to make 6 payments so they will not be charged back the commission they are making from arranging your financing.
[See: Car Dealer Finance Profits]
FYI: 6 months is the average charge back period (lender charging back the dealer) for most auto lenders.
Don't fall for this...You can typically refinance your auto loan at any time. There should be a pre payment penalty clause in the Federal Truth and Lending section of your contract. Most states will not allow a penalty for early payoff.
Question - I had bad credit when I bought my car and the dealer told me it would take about 6-8 months before I could refinance my auto loan to lower my ridiculously high interest rate, does that sound right?
Answer - Even though auto loans are an excellent way to build/rebuild credit, they are not going to be all you'll need to do.
There are many variables involved in this type of situation and from past experience I'd say it would be more realistic to wait about 18-24 months.
In addition to making on time car payments it's recommended that you work to clear up as many credit discrepancies as possible prior to applying for refinancing.
Question - How much will it cost to refinance my auto loan and are the savings worth it?
Answer - If you are applying with a lender that is charging you a fee to refinance, then look somewhere else. Most lenders do not charge a fee to refinance and if they do it is usually a small document preparation fee, $40-$50.
The only fee you may incur is a title transfer fee and that will vary from state to state, but is usually in $5 to $65 range.
To answer your question directly, yes the savings far out weigh any minimal cost to refinance.
What Other Visitors Have Asked
Take a look below to see questions from other visitors to this page...
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Car Loan Refinancing Right for Me?
Some refinance questions from Tammy T. in New York
Would car loan refinancing be right for me? I'm currently financed with Capital One Auto Finance and am not happy with the interest charges. Yes, no and where to go if so?
Can a dealership help me to refinance my car loan
Some refinance questions from Luis in Downey, CA
Can I refinance my auto loan at the dealership I bought my car or can I just go anywhere. I'm looking to refinance the term of the loan and I have pretty ..
Bad Credit Car Loan Refinance Rates
A question from Dustin in TX
I currently got screwed on a used car deal where the price was supposed to be $6,500 and after getting excited and not paying attention to what i was signing I ended up with a 10,000 dollar car plus 18% apr ..
Online Auto Refinancing vs. Credit Unions
A question from Sam in Olympia, WA
I have about $6500 in my auto loan outstanding and the current rate I am paying is 9.24% with 34 months remaining with my current lender. I have excellent credit too. I feel that at $224 a month, I am paying way too much. What do you think would be better, to refinance my auto loan ..
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