Posts tagged ‘refinancing your car’

Refinancing Your Car Loan Might be an Option

Save Money With Refinancing

Many people don’t know that refinancing a car loan can possibly save them a great deal of money. When interest rates get lower, people scramble to refinance their homes, but have you ever thought about refinancing your vehicles? In fact, refinancing a car loan is much easier than a home. Typically the online application takes about ten minutes and you could be approved within an hour.

The Process is Simple

The process is the same. You can pay off the existing loan with a loan from a different lender offering a lower rate of interest. This saves you money and lowers your payments. Online loan services give you a list of the best available rates and can match you up with lenders based upon your needs. In most cases you don’t even need to have your car appraised.

Several situations make refinancing a good option.

If you recently purchased a vehicle and used dealer financing because it seemed easier at the time, then realized the interest rate is quite a bit higher than the market rate. In this situation refinancing your car loan could save you hundreds of dollars over time.

If your financial situation changes.

Perhaps you financed your vehicle with a three year loan, accepted higher payments in the hopes of paying the loan off quicker. Then, your financial situation changes and you can no longer make the higher payments. Refinancing can help extend the life of your loan, drastically reducing your monthly payments.

If you want to get out of a leasing trap.

If you have fallen into a leasing trap, you find out the low payments are in exchange for the large lump sum you owe when the agreement is over. Generally people just grin and bear the end-of-lease payoff amount rather than look for alternatives. In this scenario you are never free of payments. With refinancing you borrow an amount to pay off your contract.


Research your refinancing options, go online, consult your local credit unions and banks and get the best deal for your situation!

Risks and Benefits of Refinancing

Is it a good idea to refinance your car? You may have seen an ad on television telling you what a great opportunity this can be to allow you some extra money in your pockets. But before you run out and do this, it is important not to be reckless and do some homework.

What is Refinancing?

Refinancing is actually the transfer of your vehicles title from one lender to another. You are able to refinance your car as long as you are still making payments on it. Many specialists believe that if the record of your credit has improved, it is time to do some refinancing. If the rates of interest were high when you bought the car, and they are now lower, refinancing is a good way to lower those annual interest payments.

You May Get Lower Interest

Another good reason to do this is if you find a better loan interest rate. A 1% reduction is even worth looking at.

If you have never considered doing this it is worth going and having a look at some of the websites that will help you with your rate shopping. These are legit and helpful places.

After you

How to determine if the used car loan interest is too high

Knowing if a used car loan interest rate is too high allows you to search for better loan offers fit into your budget intended for the car purchase. Since different lenders place different amounts of interests on loans that they provide, it is important for you to determine the ways as to how you would know that the rates offered by lenders for financing the used car is higher than what is necessary. This article provides some of the simple ways to determine if the interest rate tied to a used car loan is high and these are written below.

1. Conduct an extensive research

One of the most effective ways to determine if a used car loan interest is high is by researching about the existing interest rates offered by lenders. You can do most of the research using the internet. You can log on to reputable sites that provide used car loan quotes.

A good example of sites that provide used car loan quotes is This site is connected to different lenders all over the US and you can actually view some of the loan quotes offered by lenders for used cars in this site. All you need to do is take note of different quotes found on the website and compare this with the quotes offered to you by lenders. Check the interest rates offered to you and those that are offered by lenders connected to BY comparing them, you would determine if the rates offered to you is higher or probably lower.

2. Try refinancing your car

In case you have an existing used car loan and you want to determine if the interest rate of the loan is high you can search for refinancing loan offers. As soon as you have obtained a refinancing loan quote, try to compare the interest of the second loan with the interest rate of the first one. If the interest rate of the second loan is lower than that of the first and the margin of the difference is wide, you are actually paying for a loan with a higher interest tied to it. In order to reduce your payments, you should refinance the car.