Posts Tagged ‘Less Than Five Years’

Refinance Car Loan – Auto Refinancing Tips

April 11th, 2010



Qualifying for an auto loan refinance is easy – even with less than
perfect credit. Refinancing an auto loan is beneficial for several
reasons. Furthermore, finding a lender to manage the refinancing is easy.
However, before applying for a refinance, you must meet certain
requirements.

Benefits of Refinancing Car Loan

Car buyers refinance automobile loans for various reasons. Primarily,
these individuals are hoping to save money on their monthly payments. By
refinancing your current auto loan, you obtain a better rate and can
either extend or reduce your loan term.

If your credit has improved since the initial car purchase, a refinance
will be in your best interest. Good credit justifies prime auto loan
rates. A huge rate reduction on your auto loan will significantly lower
your monthly payment.

Car Loan Refinancing Requirements

Unfortunately, you must meet certain requirements to refinance an auto
loan. For starters, the value of the vehicle must exceed the amount
owed. An upside-down auto loan consists of owing more than a car’s worth.
In this case, you cannot refinance the car loan.

If possible, try and reduce the amount owed on the car, and then
refinance. This will involve increasing your monthly payments. Furthermore,
refinancing options only apply to vehicles less than five years old.
Secondly, the balance owed on the loan must be at least $7500.

How Does the Refinance Process Work?

Refinancing an auto loan is simple. To begin, contact your current
lender and request a payoff balance. Next, complete an online application
with an auto loan refi company. When applying for a refinance loan, you
must include detail information about your vehicle and loan amount. In
some cases, you may be asked to include the vehicle identification
number on the application. If applying online, approvals are instant.

Selecting an Auto Loan Refi Lender

Automobile loans must be refinanced through a different lender. Hence,
you should devote some time and energy to comparing lender rates and
offers. Do not accept the first offer received. A hasty decision may cost
you more money. Instead, request online quotes from three to four
lenders, and carefully review offers. Pick the lender that offers the most
savings.

By: Carrie Reeder

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Refinance Auto Loans – Things to Think About

December 13th, 2009



When thinking of how to refinance auto loans, it is important to step back and reconsider why you want to refinance. There are a number of factors that need to be considered and ultimately, you need to figure out if it will really help you.

Why Refinance?

After taking out a low rate car loan, some people might want to refinance their loan. This is mainly done to try and get a lower interest rate. Other people might opt for the same rates but a different payment scheme in order to deal with the loan quicker. In either case, the aim of refinancing is to make the repayment of the loan more expedient in some way.

In essence, what you will be doing is finding a second lender to pay off your previous loan. For many people, the decision to refinance auto loans has resulted in big savings, sometimes to the tune of a thousand dollars a year. This, however, is a best-case scenario. You could end up paying more if you don’t compare interest rates and read the fine print. Just like you need to compare car loan rates, you also need to compare refinancing rates.

But Do You Qualify?

A few conditions need to be met in order to refinance auto loans. First, the value of your car has to be more than the amount you still owe. If you owe more than the car is worth, it is known as an upside-down loan and these do not qualify for refinancing. Apart from this, the balance of your loan amount should be at least $7500. Last but not least, refinancing is only considered for cars that are less than five years old.

Like most new auto loan rates, refinancing only works best if your credit standing has improved since you took your first loan. The better your credit rating, the lower your interest rate will be. A lowered interest rate can drastically reduce the amount you will have to pay each month.

But refinancing won’t work if you don’t find yourself the best deal. Get the rates of a few different companies and compare them. A number of lenders will be more than happy to give you a quote online, which can save you a lot of time. In the end, a refinancing plan should make your loan repayment process easier to deal with. Good refinance auto loans will also save you a bundle of money.

By: Alice Smith

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