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!

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

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