Everyone Has Questions on Auto Refinance

We get calls everyday with questions about auto refinancing. It’s often confused with mortgage refinancing and the criterion really is much different.  So let’s see if we can provide a quick overview of why this auto finance  tool is becoming so popular.

Answers to frequently asked questions about refinancing an auto loan.
Q: What is an auto refinance loan?
An auto refinance is a loan that pays off your existing auto loan, similar to a mortgage refinance, but with a much simpler and faster process.  You don’t have all the paperwork, detail, downtime with specialists and appraisers so you can complete the process within days of submitting an application.

Q: How does it work?
It’s very simple. Your new lender pays off your old loan and the title to your vehicle is transferred to your new lender.  You now have a new loan and lender that you begin making payments to.

Q: Why should I refinance my existing auto loan?
Typically, consumers refinance to get a lower interest rate in order to reduce their interest costs, or to lower their monthly payments.  Auto refinance loan rates are at very low historical levels, so our customers are increasingly taking advantage of this by refinancing.  Chances are that your interest rate, even with great credit is higher than what is available today.  Make sure you know that higher interest rates are more expensive and will cost you more over the same time period.   You will be surprised at how simple and easy an auto refinance loan can be.

Q: When should I refinance my existing auto loan?
As with any personal finance decision, it really depends on your individual goals and what you want to accomplish.  It’s different for everyone but the objectives are pretty much the same.  If your goal is to reduce the amount you are paying in interest, you may want to consider an auto refinance loan with the same or reduced term as your existing loan. If your goal is a smaller payment, you may want to consider extending the term remaining on your existing loan, although this may increase the total interest paid over the life of your loans it will give you a cushion in which to work on the short term.

Q: Are there any fees associated with an auto refinance loan?
Typically, the only fees associated with an auto refinance loan are fairly standard transfer of lien holder fees which are usually $4 to $9 and, in some cases, a state re-registration fee of $10 to $70. These estimated fees may vary by lender, state of residence, etc. Be sure to check if your existing lender has any pre-payment fees.  Most do not but it does not hurt to check before hand. This could factor in to your decision to refinance.

Q: How much will I save by refinancing my existing auto loan?
How much you save depends on things such as the remaining balance of your existing loan, the difference between your old interest rate and the new interest rate, the term of your new loan, etc.

Q: Are auto refinance loans growing in popularity?
Yes.  We’ve seen a substantial increase in applications here at myAutoloan.com and the trend continues into this quarter.  Since auto loan interest rates have been at historically low levels, an increasing number of consumers are choosing to refinance their existing auto loans.

Q: What do I need to do to apply for an auto refinance loan through myAutoloan.com?
Simply complete an auto refinance loan request. You’ll typically receive a response within hours, and if approved, you may receive up to four offers from competing lenders. If you’re approved and you accept one of the offers, the lender will take care of the auto refinance process for you.

There you have it – short, sweet and to the point. Hope this helps in your planning and best of luck to all as we push the economy forward.

Waiting For the next Big Thing

There is a very select group of drivers out there who have a serious problem, one that even they are not able to freely admit to.   They are the ‘Next Big Thing’ crowd, the people for whom the current model is never enough.

Like sad, lost souls, they trawl the Internet and the trade magazines, desperately hoping for a glimpse of the very latest models.   They do genuinely want to buy a car, but they can never quite stick to the process involved in buying one.
  
So instead of wandering down to the dealership and picking out a car, they would much rather wait until the next cycle of vehicles comes out, with all of the extras that the newest models have, the new lights, those little things that tell the driver whatever, all of the advancements from the basic model.
  
However, when the newest model comes out, they fold.   They just can’t resist waiting a little longer for the next model, then the next update.   And the end result of all of this?  They never update their car.  They are never satisfied.

We at myAutoloan.com suggest that these people seek serious help.  Cars are wonderful things, whatever their model number and waiting for the supercharged version is pointless and soul-destroying.
  
This is a serious problem and we sure hope they get over it.   The best way to deal with it is buy a car if you need one. Update your old car, get it financed by a direct lender and enjoy life.   Even better, just buy a car that you like, drive it and trade it if you have to but it’s time to update and improve your mode of transportation.   There will always be something better out there, so there is absolutely no point in waiting, and waiting, and waiting… let’s get this ecomony moving again!

Save Money, Improve your Credit - Auto Loan Refinance - Part Three of Three

In part two we talked about how more often than not, if you ask anyone about “refinancing”, they associate it with their home mortgage, a lot of paperwork and expensive fees. What consumers have not clearly been aware of is that by refinancing their car loan, they can possibly save money on the interest they are paying, reduce their payment or total cost of the loan, and can actually improve their credit score in the process.

“As we have discussed before, there are a lot of auto buyers that pay more than they have to pay because they need a car,” says Heather Dietel, Director of Business Development at myAutoloan.com, a licensed auto loan refinancing lender. “If they just had to have transportation and purchased a car with higher rates at the time, they will absolutely be surprised at how much they can save.”  There are a lot of good reasons to consider doing an auto refinance loan so let’s highlight a few of them.

Benefits of Auto Loan Refinancing
The most obvious benefit of refinancing your car loan is to save money on the interest you’re paying. You can also shorten the terms of your loan or reduce your monthly payments. One great benefit of refinancing is to improve your credit.  “When you refinance, it will show up as a car loan that was paid-off in full and on time on your credit report,” Dietel explains. “The new lender pays off your current loan and even though you’re taking out a new loan with the new lender, it will help your credit score.”  Remember to keep your auto refinance loan applications to a one to two-week time period so it won’t negatively affect your credit score.

Whether refinancing will lower your current car loan rate by 10% or 1%, you will still save money, Heather says. On average, consumers can save $60 a month on their car payments and get a 3.8% rate reduction, she says.  “Even if you only get your interest rate dropped 1%, you’ll still lower your monthly auto payment and save hundreds of dollars over the course of your auto loan,” she says. “With that, you can either pay off your loan faster, or invest that money in getting rid of other debt. Remember, the way to get the lowest interest rate and save the most money is to make the auto refinance loan term equal to or shorter than the old loan.”
 
Examples of how much you can save by refinancing:
 
Loan amount:           $30,000
                                 Original loan                      New loan
term:                        60 months                        60 months
interest rate:             12.5%                              7.5%
payment:                  $675                                 $601

monthly savings:  $      74
total savings:         $4,429
 
Loan amount:           $20,000
                                 Original loan                      New loan
term:                        60 months                        54 months
interest rate:             12.5%                              7.5%
payment:                  $450                                $436

monthly savings:       $14
total savings:        $3,434
6 month shorter loan
 
Overall, at whatever level your credit score is at and whatever interest rate you are currently paying on your car loan, refinancing can save you anywhere from several hundred to several thousand dollars over the life of the loan. Check online and your local credit union or bank to see what they offer and to see if you qualify to refinance.

Financial experts tell consumers to check all areas of their monthly budget to see where they can cut, like insurance, groceries, cable bills and phone bills. Your car loan payment is an expense that you can easily reduce by refinancing.

Save Money, Improve your Credit - Auto Loan Refinance - Part Two of Three

We are outlining and describing area of auto refinancing that are often misunderstood in the auto financing world.  . What consumers have not clearly been aware of is that by refinancing their car loan, they can possibly save money.  Misconceptions are that only individuals with bad credit should do this but be prepared for a lot of hassels and paperwork. We hope to dispel that as we provide additional information on how and when to seek out an auto refinance loan.

We’ve been discussing this topic with Heather Dietel, Director of Business Development at myAutoloan.com, a licensed auto loan refinancing lender.  She has indicated that if you are paying more than what you think you should, it a pretty easy task to inquire and find out if you can save money.  So where do we begin?

When and How to Refinance
Consumers can refinance their car loan after three on-time payments, Dietel explains. Three to six on-time monthly payments is usually the minimum and there’s no point at which it’s too late to refinance. The more on-time payments you have, the more chance you have to increase your credit score. But you don’t want to wait too long since you want to start paying a lower interest rate as soon as possible.

So how do consumers start the process of refinancing? Usually, the easiest way is to go online and fill out an application with a lender that does auto loan refinancing Dietel says.  “It’s so easy to do it online, it’s not worth the time to try and get your current lender to match any lower rates you’re offered,” she says. “Plus, you’ll get responses within minutes. This can help you make a good decision. It’s almost always a different lender that will refinance you. Not everyone who applies is approved though. You can get rejected by making a late car payment and not taking care of your credit.”

If you still don’t have a prime credit score, you may look like too much risk to the lender who is considering refinancing your car loan. Dietel says to try your local credit union if you were denied online.  “Generally, the new lender refinances your current auto loan for the amount left in the current term,” Dietel says. “For example, if you have 42 months left in your current term, they will refinance you at 42 months at a lower interest rate so you will pay less for the same vehicle in the same amount of time. However, your term is flexible and may be shortened or lengthened to accommodate your particular refinance needs.”

Once you apply online and get approved, a loan agreement will be mailed overnight or will be available online, Heather explains. Then you sign and return the paperwork to the lender. A check for the remaining balance of your old auto loan is sent to your current lender and the loan is paid in full to your former lien holder. Then your vehicle’s title is transferred to the new lien holder and you start making payments to your new lender.  “As with anything related to the Internet and money, you need to be careful about which sites you approach to apply for a refinancing loan,” Dietel says.

Information to have ready when applying for a refinance car loan:
• VIN number
• current mileage
• current lien holder
• current loan information – requested amount to be refinanced, monthly payment, date of first payment
• vehicle make, model and style

Our last entry is going to cover additional areas of an auto refinance loan and detail some of the benefits associated with taking the time to investigate.  See you then.

Save Money, Improve your Credit with an Auto Loan Refinance - Part One of Three

More often than not, if you ask anyone about “refinancing”, they associate it with their home mortgage, a lot of paperwork and expensive fees. What consumers have not clearly been aware of is that by refinancing their car loan, they can possibly save money on the interest they are paying, reduce their payment or total cost of the loan, and can actually improve their credit score in the process.

Popular misconceptions about auto loan refinancing are that only people with bad credit should do it and that there is a ton of paperwork and time involved.  Surprisingly, this is not true.   Even buyers who were approved for a car loan with excellent credit can also benefit by doing an auto refinance to get an even better rate – it’s all about when they originally applied and what the rates were many months ago.  It is a moving target as you know.

“Many times auto shoppers pay more than they have to pay because they need a car,” says Heather Dietel, Director of Business Development at myAutoloan.com, a licensed auto loan refinancing lender. “If the individual had to have transportation and purchased a car with higher rates at the time, and they’ve been working to rebuild their credit, they will absolutely be surprised to see how much money they can save by refinancing.”

Who Should Refinance?
There are several different situations when refinancing an auto loan is beneficial, says Heather. You should refinance if you had a poor credit score when you bought your car and signed a loan with a high interest rate, if you reviewed your home budget and need to trim outgoing cash and reduce fixed expenses or if you’ve experienced a medical or other type of emergency and need to reduce cash outflow.

“Basically, refinancing is just not something that has been a priority with auto finance customers in the past,” Heather says. “Not until the current economic crisis has it really become a great option for many people who are trying to reduce their costs.”

If you signed your car loan with a high APR, like 15 to 20% and higher, you’re NOT stuck with that high interest payment.  Even if you bought your car a year ago with a high credit score and an APR of 7.5%, you can still refinance to get an even lower rate, Heather says.

“Even if you had excellent credit when you bought your car, the dealer can still mark up your interest rate,” she explains. “Not everyone knows that the dealerships can mark up rates but it happens all the time.  Also, the Fed rate has gone down, so it’s cheaper to loan money. You can lower that 7.5% rate to a 5.5% rate and save money.  Right now, the rates can’t get any lower.”  If you have good or bad credit or a low or high interest rate, it’s always a good idea to try and get a lower rate by refinancing, Heather says.

Because there are a lot of sub-prime lenders that refinance auto loans, you don’t have to have a credit score of 650 or higher to be considered, she says.  “Basically, a FICO score above 560 is where to start,” Heather says.  “As your credit score increases, the greater your chances are of getting multiple approvals and competitive rates.  It’s easier to get approved for refinancing than to get a car loan.”

Tomorrow we will discuss “When” and “How” to go about getting an auto refinance loan and detail some of the things you need to know or have so that you can apply online, whenever you want to and from the comfort of your home.  See you then.

House passes ‘Cash for clunkers’ bill

Thursday, June 11, 2009  8:09am

The auto industry and lawmakers are pushing for quick Senate action on “cash for clunkers” legislation to boost auto sales, after the House overwhelmingly passed such a bill Tuesday. But it remains unclear when Senate supporters may overcome the objections of Senate appropriators and a group of senators who say the House proposal doesn’t do enough to improve fuel efficiency on the nation’s highways, as reported in the Detroit News, Washington Bureau.

The House approved its version Tuesday, 298-199, with substantial Republican support despite the opposition of House leaders including Minority Leader John Boehner and whip Eric Cantor.  Opposition came from members of the Senate Appropriations Committee, which objected to funding provisions of the bill, and from senators who want tougher fuel economy requirements. Getting the auto loan financed is still no easy process as lenders continue to tighten credit and only approve the very highest credit scores.

Sen. Diane Feinstein, D-Calif., introduced a competing proposal on Monday.  Stabenow said Tuesday she’s working with other senators to answer those concerns. One possibility is an idea House leaders are pursuing to attach an appropriation for the program to a wartime spending bill.  At some point the lack of auto finance must be addressed.  The Alliance of Automobile Manufacturers, auto dealers and other groups also called for speedy Senate passage.  President Barack Obama has also encouraged Congress to pass legislation.  The bill approved Tuesday would offer vouchers worth $3,500 or $4,500 to new-car buyers, depending on the mileage of their new vehicle. To be eligible, consumers would have to turn in a vehicle rated at 18 mpg or less for one rated at 22 mpg or greater. Pickups and business trucks would have different criteria.

Honda Celebrates 50th Anniversary in U.S.

Thursday, June 11, 2009  07:12am

Yesterday, Honda celebrated its 50th year of operating in the United States, Auto Remarketing E-News  reports. It commemorated the golden anniversary by reflecting on a few of its milestones over these last 50 years.

Beginning with the 1960s, Honda officials discussed how the company made its way into the motorcycle market in the U.S.  “By leading American consumers to reconsider the motorcycle’s place in society, Honda almost single-handedly changed the image of two-wheeled transportation from something for motorcycle gangs to a form of transportation appropriate for everyone,” they noted.

As you look at the 1970’s, they marked the advent of the Honda Civic, which aimed to deliver higher fuel efficiency and meet new clean-air requirements.  “With the front-wheel-drive Civic, equipped with a cleaner, more fuel efficient and transverse-mounted engine, Honda demonstrated to the industry that it was possible to meet new requirements for cleaner air while offering customers a fun-to-drive car with higher fuel economy,” the company shared.

During the 1980’s, Honda introduced the Accord, which went on to become the first import nameplate to be the best-selling car in the U.S., according to Honda officials. “The Accord became the industry benchmark spawning a new generation of midsize cars and by building Accord in America, Honda demonstrated that it was possible to build high quality automobiles in the U.S,” they remarked.

By the time the 1990s rolled in, stricter emissions requirements were on the horizon, something on which Honda said it put a strong emphasis. “Meeting challenging new requirements for low emission vehicles years ahead of schedule at a time when other automakers said it was too difficult, Honda demonstrated that it was possible to meet the LEV, ULEV, and SULEV requirements while also meeting the needs of customers,” the company spokesperson pointed out.  In addition, they went on to say “As a result of these advances in clean emissions technology, the industry can now focus on reducing greenhouse gas emissions to address global climate change,”

Moving on, such environmental and fuel-efficiency issues have been brought to the forefront of the auto industry in the 2000s. Honda focused on ecological responsibility and innovation.  “By simultaneously advancing both advanced environmental and safety technologies and making them affordable for customers, Honda is leading the way in creating environmentally responsible mobility for a new generation,” officials commented.  They went on to say,  “This has included introducing America’s first gas-electric hybrid vehicle and the first fuel-cell vehicles leased to individual customers, while offering safety technology as standard equipment in all of its vehicles”

Meeting Customer Financing Needs

Online auto loan financing is the best way for you to grab a great auto loan deal.  This is the general consensus at the moment, with a plethora of sites popping up that offer multiple auto loan quotes, as well as advice.

And the reason why they are so successful?  Simple.  People like to be in control.  We often call this empowerment because taking the auto loan process out of the hands of a salesman gives you trememdous control in negotiating the deal on your car.  Picking up the telephone and talking to a salesperson about an auto loan involves a lack of control.  Going to a car dealership and speaking to someone there involves a lack of control.  However, using your mouse and choosing where you want to go and how long you spend there, while you search for rates and possible auto financing, that’s control.

myAutoloan.com obviously offers a great service; you will know this because you are reading this post.   But we don’t do this for any other reason than that we love cars, love helping people to buy them and love saving people money by going direct to financing

sources.  You see, we don’t mark up any of our loan offers therefore, you are getting the most competitive rates and terms available.  And we hate those people out there who will quite happily sell you a loan deal that will, effectively, eat up your income, when at the same time there are loan deals that will clearly save you money.

Yes, we love what we do.  We love to help our customers find auto loans and auto refinance loans to save them money.  It has taken a few years for people to truly understand the power of the Web just how much freedom that is provided to obtain information that was once more difficult to get your hands on.  But now that people know how much control they have with their mouse and the internet, it pretty much dominates our lives. 

In fact, it is pretty fair to say that there has never been a better time to buy a car, and there has most definitely never been as much information available to the consumer. Check out our auto buying program, or the auto buying guide and the vast amount of customer information and research that we have compiled.  Our moto: Your Loan - Your Way!

Buying A Car? Don’t Overlook Safety Concerns

Buying a new or used car, whether you are taking out an auto finance loan or you are in the lucky position of having cash, is a fun and challenging experience.  It is meant to be.  For many people, the autos that we drive are status symbols and they also tell the world a lot about our personality.  At least, that’s what some have concluded but I’m not totally convinced that it is true.    However, when you sign that auto financing agreement for a new car loan, you have to be certain of one thing above all else: is the vehicle going to be safe to drive?  You really need to know.

Safety in cars has come a long way.   While there are still, believe it or not, some vehicles that have hardly any safety features (a certain Italian manufacturer springs to mind) the majority of cars have sophisticated safety equipment fitted as standard.   Even so, there are a few safety measures that you should insist upon having in your new vehicle when you buy.  If they don’t come as standard equipment, buy/add them as extras or options.  Most of the time they come in a package but they can always be purchases separately if you wish.  If you are buying a used vehicle, buy the vehicle that has added the most safety specifications and best safety record  as close to the best safety specification as possible.  This is an investment in your future, and not doing this means that you’re literally driving an unsafe vehicle making your car unsafe.

First up, and we know this sounds really silly, but especially if you are buying a used car, make sure it has seat belts.   Seat belts can mean the difference between life and death.  Safety records confirm it.   In todays world, seatbelts are law and must be used, therefore, don’t buy an auto without them.  That is that.  So always check that whatever auto you purchase, it has seatbelts and buy obviously they must be in good condition has good and they working seatbelts.  

Next make sure that the car you purchase has an anti-lock braking system fitted.  This is, for the most part,  now actually standard on most newer modern vehicles, but some have slipped through the net, so check that the vehicle has them, and don’t buy it if it doesn’t (or if it is a new car option,  make sure you purchase the system).   An ABS makes sure that you can still control the car when in a skid.   That really is all we have to say on the matter.

While we are on the subject, check to see if the ABS has something called Brake Assist.   This is a system devised by those nice people at Mercedes Benz.  The system actually makes sure that, in an emergency stop situation, the brake pedal is rammed to the floor, it subsequently reduces the problems that panic-braking brings to the situation.
 
The majority of cars (but not all) have airbags in the front.  However, there are many cars out there, especially the older ones, which do not have side-impact protection bags.  These do the same as frontal bags, but for the side.   Cars can be rammed into from the side.  So if you want to protect yourself from a ton of metal rushing at your head and body at 50 miles per hour, and the glass that will come with it, do your best to find either a used vehicle that has side impact, or a new one that can be upgraded if necessary.

Before you ever go shopping, search rates and check out auto loan financing in advance.  This helps keep your focus on the look, safety features, price and condition of the car.  Everyone knows that these machines need responsible handling.   Safety measures like those outlined above aid the responsible driver.  Be safe!

Auto Refinancing is nothing new

I’m amazed at the amount of people that do not know they can refinance their auto. It seems like everyone knows about home refinancing but not as many know about auto refinancing.   There are a few similarities but several differences in the two.  One thing is for sure, auto refinancing is easier than home refinancing.

 Similarities:

• Rates are based on credit history.
• You may have individual or joint applications to qualify for the loan.
• There is a loan to value maximum. Borrowing equal to or less than what the asset is worth.

Differences:

• Zero closing costs with auto refinancing. Yes, I said it. Zero closing costs.
• In most cases it can all be completed on line or through fax/email. No in person signatures required.
• Only a few papers to sign vs. a stack. We all know the stack I’m talking about for home financing.

So many people are finding it difficult to make ends meet these days. Lowering any of your bills is helpful. You can save in multiple ways. Lower your payment, lower your interest rate, extend your term, put money down or do it all.

Example of savings:

$15,000 original loan amount, 18% rate, 60 month term = $381 a month

You paid on the loan for a few months to a year and now you owe $13,000 but still at the $381 monthly payment.

$13,000 new loan amount, 13% rate, 60 month term = $296 monthly payment. You now have $85.00 more a month in your pocket and you didn’t have to pay a dime to do it.

myAutoloan.com has multiple lenders in the auto refinance space. You have the power to compare offers and pick the one that best fits your needs. Our rates begin at 5.45% for excellent credit and go up from there.  What are you waiting for? Apply now for auto refinancing.