Is Your Auto Loan Payment Too High?
If you’re making payments on loan for a new or used car, you can save money by realizing that auto loan payments are not carved in stone. If your auto loan payment is higher than you’d like, it’s a simple matter to reduce it by refinancing.
Auto loan payments are not carved in stone
Although the paperwork is minimal and the loan process is fast and simple, many people just don’t think to refinance their auto loans. They’ll go through the expensive and much more complicated process required to save a couple hundred dollars a month by refinancing their home mortgages and yet completely overlook the additional savings available through auto refinance loans.
Reasons to refinance auto and car loans
A change in interest rates. Auto refinancing is a powerful money-saving tool and anyone who has been paying on a car loan for at least a few months should consider it. The most obvious situation for refinancing is when interest rates drop after you purchase your car. If you know that interest rates are lower now than when you financed your car, apply for a refinance loan and find out how much you can save.
Shopping around after the fact. It’s common when buying a new car to accept the financing offered by a dealer simply because it’s convenient. Dealer financing is rarely the least expensive alternative, so it’s also common to discover shortly after the sale that you didn’t get the best deal available. If you didn’t shop around for better interest rates when you bought your car, chances are good that you can start saving money every month by refinancing now.
Improved credit score. It is especially important for people who have bad credit to pay attention to refinance opportunities. You may be a good candidate for auto refinancing if you had bad credit when you purchased your car but have been making payments on time for a couple of years. Frequently, a car is the first purchase a person makes on credit. When you buy a car without established credit, whether or not you accepted dealer financing, you don’t get the best interest rate available. But after you’ve made a few payments consistently and on time, you can usually qualify for a better interest rate by refinancing.
Changed economic circumstances. Some people intentionally accept loan offers with short terms and large monthly payments in order to pay a car off as quickly as possible. Not infrequently, however, the economic picture changes and the payments are not as easy to make as they once were. Buying a house, changing jobs, getting a divorce, having a child, running into health problems, helping out an older family member — not to mention getting caught in an international economic downturn like the one we’re experiencing right now — can make a once-affordable car payment completely unmanageable. If you’re in that boat, imagine what a difference saving a couple hundred dollars every month on a car payment could make in your household budget.
Refinancing is available for a new or used auto loan
It doesn’t matter whether you bought the car you’re now paying on new or used. Both types of loans can be refinanced, and the sooner you refinance the more you stand to save. Early-on in the term of a car loan, your monthly payments consist primarily of interest, with very little being applied to the reduction of loan principal.
If you were to refinance at a lower interest rate and continue making monthly payments in a similar amount, you’d pay your car loan off much more quickly. Depending on how much lower your new refinance interest rate is, it’s often possible to pay your loan off more quickly while making lower monthly payments, too. Just a small reduction in your interest rate can lower your payments appreciably, but the longer you wait to refinance, the less you stand to save.
It’s easy to find the best auto loan at cardealexpert.com
Whether you’re in the market to buy a car or thinking about refinancing the car you’re paying on now, Car Deal Expert makes it easy to find the best interest available without wasting any time in the process. You could spend hours on the phone or online looking for a loan. Or you can fill out one short application at Car Deal Expert.
The minute you apply at Car Deal Expert, we search our network of online lenders to find the one offering the best loan for your particular situation. We match you to a lender right away, and you’ll know in just minutes whether your loan or refinance request is approved. There’s no waiting or wonder, and the whole process is hassle-free.
Refinancing your car is one of the easiest things you can do to increase your monthly cash flow. If you didn’t shop around for the best car loan when you bought, check to see whether you can refinance at a better interest rate now. The sooner you do, the sooner you’ll start to see how much easier it can be to make ends meet every month.
Get the lowest auto loan payment by applying right here
Applying for an auto loan or refinance loan is easy and risk free at Car Deal Expert. It takes just a few minutes to apply, and there’s no cost to you. There’s no obligation, either, so you have nothing to lose — except all that extra money you’ll have to keep paying every month until you finally get around to refinancing![apply_button]