Car Loan Refinancing Saves Money
Refinancing an auto loan is a great way to save money. Especially today when interest rates are low and people are scrounging for ways to make ends meet, it’s worth taking a few minutes to find out whether you, too, can lower your monthly expenses by refinancing your car. If interest rates have gone down since you purchased your car, or if you didn’t get the best deal available at the time, apply right here at Car Deal Expert and we’ll do all the legwork to find you the best refinancing loan available.
Refinancing your car can get you out of an expensive dealer loan
It’s not unusual when buying a new car to be so caught up in the moment that you neglect to shop around for a loan. Car buyers frequently accept whatever financing the dealership offers, but almost always, had they taken the time to shop around, they would have found better interest rates and more favorable loan terms online. If you didn’t comparison-shop for loans, it’s not too late to get a better deal and start saving money every month.
Improved credit scores are good reasons for refinancing auto loans
Accepting dealer financing without comparison shopping is perhaps the most common reason people choose to refinance. But there are other good reasons, too. For example, sometimes people who started out with compromised credit histories can improve their credit scores just by consistently making auto loan payments on time. Other times, people make concerted efforts to repair other aspects of their credit histories after buying a car. Your credit score is the single most important factor when it comes to determining how much you have to pay to borrow money: the higher your score, the lower your interest rate. If you’ve been making car loan payments for some time now and your credit score has improved for any reason, you should consider refinancing.
Establishing credit is another good reason for refinancing an auto loan
Many times a car is the first purchase a person makes on credit. Once you’ve made payments on a car loan for a couple of years, you begin to establish credit and can qualify for revolving charge accounts or other forms of credit. Once you’ve done that, you can qualify for more favorable interest rates than you could before you had a credit history. If your car was one of the first things you purchased on credit, now may be a good time to see whether you can qualify for a loan with better terms. If you had no established credit when you bought your car, you may have had to get a friend or relative to co-sign the loan. By refinancing now, you may even be able to let your co-signor off the hook and get a loan solely in your name, based on the strength of your newly established credit history.
When refinancing an auto, the sooner you apply the more you save
If you have an auto loan that should be refinanced for one reason or another, the sooner you do it, the more money you stand to save. Early in a car-loan term, your monthly payments are applied primarily to interest. As time goes by, larger percentages of your payments are applied to pay down the principal more quickly. The sooner you refinance at a lower interest rate, the more you save on payments that are applied mainly to interest.
Refinancing at Car Deal Expert is fast and risk-free!
Refinancing a car by applying at Car Deal Expert is not complicated or time-consuming. Find out how much you can save by applying today. As soon as you apply, we’ll put you in touch with the lender offering the most favorable terms for your particular situation. There’s no risk and there’s no obligation.