Auto Finance: How Car Loans Can Help you Achieve Success

Did you know you could refinance your current auto loan at a lower interest rate? It’s like finding money, but it’s yours!

People are currently refinancing their home loans as interest rates continue to drop.  What a lot of people don’t appreciate is that their original auto loans can also be refinanced.  Auto loan refinancing is easier than refinancing your home and at this time a very smart idea.

You can find lenders for auto finance and refinancing all over the web.  The application is easy; a couple of minutes of your time and you don’t need an appraisal (you would when refinancing your home).  Home appraisals are based on the equity in your home, which is why an appraisal is necessary.  However, your auto financing is based on the dollar amount needed to pay in full the current amount owed on the vehicle.  The value of the car is not considered in refinancing the auto loan.

How much could you save? Depending upon the amount you owe (the amount to be refinanced) and the new interest rate you receive it can be a considerable amount.  On an auto financed for $23,000 at 11 percent on a five year loan, you’re paying approximately $500.00 a month.  You may find a web lender that can offer auto financing the car loan balance at a lower interest rate and reducing your payments to approximately $390.00 per month.  Saving you close to $6,000.00 for the complete original amount financed.  Depending upon your original credit rating and amount of financing for your auto, your monthly payments can be cut even more significantly by refinancing.

Customers that would profit the most from refinancing would be those that financed their auto at the start with a fairly good APR, but love the opportunity to save on any and everything.  They see a chance to save by refinancing and don’t hesitate to do so.  Auto owners whose original auto finance was on a short term loan and have higher payments but their financial circumstances have changed , a new baby  added to the family, and they no longer have the finances for the higher payments. A few owners were originally leasing their vehicle and determined at the end of the lease they wanted to buy the auto but not through the dealer that originally leased the vehicle.  There are a number of buyers that discovered the dealer told them they were getting a great deal/rate for the vehicle but they later find out that they could have gotten a better deal.  They choose to create their own better deal by refinancing.

More people would refinance their auto if they realized how uncomplicated and easy the process is.  A simple online application, processed rather promptly without an appraisal of your auto.  Simply put, many owners don’t know the process is available or what is involved.

Rates on lots of things drop when the federal interest rate does.  That includes car loans.  Take the opportunity to save money in this rather rocky, uncertain economy.  It’s like found money, but it’s yours.

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