Category Archives: Auto Refinancing

When to get an Auto Refinance Loan

You have no doubt heard of auto loan refinancing before. Or simply an auto refinance loan. The term “refinance” actually refers to a financial situation wherein a borrower finds financing to pay off an existing car loan.  Refinance loans are most often used in home buying.  In fact, refinancing is one of the most popular methods of getting less expensive financing for a home loan.  The reason is that rates change and when you can refinance and save money, it’s a smart thing to do.  This applies to auto refinancing as well.

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With auto refinance, many borrowers have gotten a long at the dealership.  Time passes and rates change and the possibility of saving thousands of dollars may exist.  Auto refinance is basically paying off one loan with a new loan.  The goal of auto refinance is to allow the borrower to save by reducing the monthly loan obligations.  And as such, it is one of the best kept secrets in the financing industry that is so easy to obtain a free look and comparison of your current loan amount.   For years now, people have refinancing their homes and saving thousands of dollars.  

However, the practice of refinancing car loans has not been publicized or communicated as much.  Why?  Perhaps the reason is that auto loans generally behave differently from home loans and people are naturally skeptical about new methods of financing.  Regardless, auto refinance is still a good choice, provided that you do a bit of checking out options.  One option is to use a site that actually give you a choice between different loan offers.  A site that shows you in a secure and confidential manner what other lenders would be willing to refinance your existing car loan for.  A site like myAutoloan.com.

Auto Refinance Loan

If you obtained your auto loan from the dealership, chances are that you can save money by looking at a refinance loan.  Interest rates fluctuate all that time and knowing that the dealer may have marked the APR a bit means that you might save by reducing the APR terms of the loan.  Auto Lending Rates and Mortgage rates tend to move with interest rates.  Therefore, as interest rates change so do the refinancing rates change.  Changing finance rates typically mean all financing rates change as well and thus there is the opportunity to save with a reduced monthly payment.  To check out how monthly rates can change use a rate calculator to get an idea of monthly payments with a new rate. 

Only few people really understand the time value of money.  Keep in mind that the longer you pay for a loan, the bigger amount of money you actually spend for it.  Thus, by the end of the loan period, you could have paid more money on interest than on the principal.  This is why auto refinance is important as it is one of the few methods that could help you minimize loan costs and maximize your savings.

Who can benefit from Auto Refinance?

Almost anyone with a loan to his name can benefit from auto refinance.  Even car buyers with bad credit can obtain auto refinance as a way for them to lower the overall costs of a car loan. 

Let’s say, for instance, you make an auto loan for $16,500 on a new Honda Accord.  You don’t have very good credit because of a few rough roads in your journey.  It happens – something bad things happen to good people.  You decide to move forward and buy the car and you agree to make payments with an interest rate of 21% APR.  Now you make on time payments for 4 to 6 months and your credit score improves and you look into getting an auto refinance loan.    

If for example, you move forward and apply at myAutoloan.com and get up to 4 offers from credible lenders.  Because your payments have been on time your ability and qualifications are attractive to the lenders, the offers vary in rate and payments.  However, this time, you decide to accept a loan rate of 6% APR.  Your current monthly payment is $446 which gives you total interest charges of $10,283 at the end of your loan period. Your auto refinance loan offers you a monthly payment of $319 with total interest charges of $2,639. Thus, by refinancing, you can save up to $7,600.

Whether you have bad or perfect credit the possibility of you saving money with a refinance auto loan is real.  Check out your costs and look into a no obligation auto refinance loan today.  Good luck and good hunting!

Can You Refinance Car with Bad Credit & Late Payments

Your credit score is a work in progress. It goes up, and then it goes down. Life always seems to get in the way of your next credit card, rent, or car payment. What if you could lower one of these bills, even a little bit? Would it help you catch up and stay ahead of the game? There might be a way you can refinance your auto loan despite bad credit and late payments. We’ll show you how.

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First, refresh your memory on what it means to refinance.

When you refinance, you essentially get a new loan to pay off the existing one. The new (refinanced) loan is a new contract between you and the lender.

Refinancing allows you to get a new loan with a different interest rate, term, and monthly payment. People refinance their auto loan for many reasons, but usually to get a more favorable interest rate and lower monthly payment.

Our goal is to help you refinance your auto loan, even with bad credit and late payments. If you can lower your monthly loan payments, you might find it easier to stay on top of them and save money in the long run.

Next, double check your credit score.

It may be higher than you think, or at least higher than when you first applied for a car loan. If so, you’re in for a pleasant surprise! This is also the time to look for discrepancies in your credit report. Make sure all of the information is correct, including accounts open/closed, judgements, and credit inquiries. Disputing any errors could give your credit the boost it needs to get beyond that “bad credit” label.

Get your credit scores and reports from all three credit bureaus within seconds.

Talk with your current lender.

If your credit score is higher than when you first applied for a car loan, call your current lender! This is a great time to ask them about refinancing, especially if you can prove that your credit has improved or your situation has changed for the better.

Like with most things in life, you never know unless you ask. And what do you have to lose? Lenders don’t like losing customers, since losing customers means they’ll also miss out on interest payments. They may work with you to modify your current loan or help you refinance, despite your credit or payment situation.

When you talk to your lender, ask if they’re going to run a hard credit check. Then be prepared to apply for refinancing elsewhere. Hard credit checks can lower your credit score by a few points, but you can avoid multiple “dings” by applying for auto refinancing within a short timeframe. The major reporting agencies roll multiple auto inquiries into one inquiry on a continuous 14-45 day cycle.

Or, turn to a company that understands you.

We believe that refinancing isn’t a luxury that’s reserved for people with perfect credit scores; however, this belief isn’t shared by everyone in the industry. It may not even be a belief that’s shared by your local bank.

You’ll save yourself time and frustration if you turn to a lender that works with everyone who wants financing and offers you options from the very beginning.

myAutoloan has a proven history of working with people who have bad credit. Just check out our customer reviews!

Direct Online Automobile Loan

Direct Car Loans: The Process

Taking out a car loan for the first time can feel overwhelming.  You might also feel some uneasiness if you are using the web to search for an auto loan.  It is different but it is also much simpler and less stressful than going to a dealership for financing to get a new car.  We will try to provide you with some more information about the process so that you see that this online process is easier and takes far less time than you might think.

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Evaluate Your Finances

With a direct from lender process for obtaining automobile financing, you can find opportunities available across the full financial credit spectrum. Still though, it is good to know what to expect.  Take a look at your credit score to get an idea of where you fall. Also, you should start considering how much of a loan you will need.  By searching online for cars in which you’re interested and figuring out how much money you can pay down on the vehicles will help you to determine how you want to proceed.  Keep in mind that while the process is designed to help you get an automobile loan, higher credit scores and a higher down payment can assist you in obtaining a higher priced vehicle.

Know that Opportunities Exist 

As you’re taking a look at your financial situation, you might start to feel as though you won’t qualify.  Remember that myAutoloan.com offers potential lenders for people in all different financial situations.  Even if you have a low credit scores, you can apply with us for a loan.  The point is it does not matter what your score is, we will have a lender that can help.   Be it excellent credit or damaged credit, we have an answer for you.  Knowing that opportunities exist for you to obtain an automobile loan, we sincerely hope that you will be encouraged to fill out the application and see how great a feeling it is to have a choice of lenders.

Review the Possibilities

You might think that you’ll get only one offer presented to you – that’s what happens at a dealership.  Fortunately, myAutoloan.com works to provide you with up to four direct loan offers from national lenders and specialty lenders willing to finance your car purchase.  Once the offers are presented to you online an within minutes, take the time to review the components – (rates, months, and APR%).  Thoroughly reading through each offer lets you know more about how to utilize the choices that are being presented.   Also, make a note of any questions that you have.  All of our lenders call to verify the application is from you and it gives them the chance to answer any questions that you might have.  Speaking with a direct loan representative to fully understand the loan offer is a smart decision.

Get Your Loan

A major benefit of an online lending platform like myAutoloan.com to finance your automobile loan is that you do not need to go through the dealership. You can actually go car shopping with your financing already in hand.  You just finalize the loan amount at the time of closing.  In a long term, you can save your valuable time by doing so.  Also, you can save money by using the online direct loan process.   When you get a car loan from the dealership, remember that the dealership has to make money too. You are likely to encounter fees that you wouldn’t if you were to take out a loan directly from one of our direct lenders.  Being directly connected with the lender in charge of the automobile loan gives you empowerment!  It’s very good thing to have when you are shopping for a new or used car.

Pay Your Loan

Once you have accepted an offer of financing from a direct lender, you will know the terms of the agreement and make the payment date any day of the month.  Opting for a direct auto loan is actually a great way to build up your credit score.  You might be working on bringing you score up or just building your score to improve your credit worthiness.  By paying back a loan, with on time payments, means that you’re adding to your credibility as a borrower. In addition to getting a new vehicle that you love, you also have the opportunity to improve your credit rating – It’s a great win for you!

Give us a try!  That’s also a smart move if you like choice!  Good luck and good hunting.

Top 4 Mistakes When Refinancing Your Car Loan

Refinancing your auto loan means getting a new loan, typically one with a better interest rate. It could save you hundreds of dollars, maybe even thousands over the course of the loan. Saving that much money is exciting, right? Don’t let that excitement cause you to overlook simple details in the refinancing process. Watch out for these common auto refinancing mistakes to make sure you secure your best refinancing deal yet, all with a little help from myAutoloan.

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1. DON’T: Assume your credit is great

Refinancing is a smart move if your credit score has greatly improved since you first applied for an auto loan. If you’ve been making your car payments on time since you first purchased your car, whether for a few months to a full year, your credit score may very well have gone up. Maybe it’s pushing 700, maybe not. There could be errors on your report that are damaging your credit score, but you won’t know unless you check.

Check your credit with the three major credit bureaus, Equifax, Experian, and TransUnion. Report and resolve any errors before applying for refinancing to help make sure receive your best refi interest rate. Your new lender will run a credit check to determine the conditions of your refinance loan. Beat them to it!

2. DON’T: Go with your first refinancing loan offer

When you’re learning how to refinance a car loan, you might be tempted to think that all loan offers are created equal. Or, that you don’t have enough time to compare more than one auto refinancing offer. Well, you’d be wrong on both accounts.

Refinancing offers vary from lender to lender, company to company. Offers can even vary by day depending on events in the economy. If you take the first offer you apply for, you might not be getting the best loan terms or interest rate.

Do yourself a favor and compare multiple refinancing offers. You can visit multiple websites and financial institutions, fill out multiple applications, and then separately evaluate each offer one by one. OR, you can visit one website (like myAutoloan.com), fill out one application, and evaluate multiple offers side-by-side. Apply to refinance your car loan on myAutoloan and in a matter of minutes we’ll match you with up to four offers from trusted lenders. It’s one application, multiple loan offers.

3. DON’T: Refinance a car you can’t afford

Let’s say you bought a new car that was a stretch for your budget from the get-go. Maybe it’s a luxury coupe or convertible that lightens your mood, every time you hop behind the wheel. You’ve become attached to the car but not your monthly payments.

Refinancing a pricey car may look good on paper at first, but it could end up costing you more in the long run. Do the math. If you need to refinance to lower your overall car expenses, you might want to consider selling the car and buying a car that’s more affordable.

4. DON’T: Overextend the new loan terms

According to Investopedia, “Overextension describes a loan or extension of credit that is larger than what the borrower can repay comfortably.”

Refinancing your current auto loan should make you feel more comfortable, not less. Overextension can happen when you extend the loan terms beyond your means. You pay less, but for longer.

A 36-month loan refinanced to a 60-month loan will lower your monthly payments, but those lower monthly payments will come at a cost. The longer you finance a car, the more interest you’ll pay on it, and that’s on top of more financing charges over time. If you’re in a long loan now, refinance for a shorter term.

Longer loan terms come with more drawbacks than one. Downsides include:

  • Negative equity (and an upside down car loan)
  • Low vehicle resale value
  • Getting tired of the car before your loan term ends

At myAutoloan, we’re here to help you avoid auto refinancing pitfalls by giving you the power of choice–all with no pressure. Compare up to four auto refinancing offers today and make your choice, at your own pace and on your own time.

The Best Tips to Use When Refinancing a Car Loan

Don’t Get Stuck With a High-Interest Car Loan

A common problem that many car loan shoppers face when purchasing a car is that they get locked into a high-interest auto loan. This usually happens because the consumer fails to shop and secure a low-interest rate loan before they shop for a car – unfortunately they instead decide to accept the finance rate offered by the auto dealer they’re doing business with. It is a mistake to not thoroughly research what car loan rates of interest you qualify for before completing your purchase. Why? It could potentially leave you paying far more for the car and the car loan than necessary.

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Stay on Top of Your Credit Score

One of the best tips for finding the most economical car loan possible is finding out what your credit score is in today’s market. By knowing your credit score and how prospective car loan lenders might look at your overall credit rating, you can acquire a better understanding of what rates you qualify for before you initiate a purchase. Shopping is smart so take the time to research. If you made the unfortunate mistake of taking a car loan before without researching your options, then knowing credit score after the fact can help you find a suitable refinancing loan option with a lower rate and potentially better auto refinance loan terms.  By refinancing your auto loan, you will see that you can save both interest and get a lower payment immediately.

Find Out What Your Car is Worth

Knowing what your car is worth is key to finding an attractive car loan refinance option or car loan refinance offer. A potential auto-refinancing lender is going to need to have an adequate equity stake in your vehicle in order to offer you an attractive loan rate. If you owe more on your car than what it is worth, then you might find it difficult to qualify for a refinancing car loan at all, as the prospective refinancing lender will not have adequate equity to work with. The best option is to find an online lending platform that can offer you more than one refinance offer. By having multiple refinance loan offers for your car gives you a choice as to what lender can best suit your refinancing needs.

The best and most trusted way to discover the real value of your car is to use a valuation service like NADA Guide, Edmunds or the Kelley Blue Book valuation tool. Some websites offer free services that help to evaluate what your car is worth by using a three-tiered estimation model of low, middle, and high figures. TrueCar might also be a good option when you are trying to fin out what your car is worth. When using any valuation tool be sure to enter the details about your car as accurately as possible, especially when it concerns the condition of your car’s interior and exterior. It is also important when using these servicing tools to make sure that you enter your actual VIN (if requested) and the exact mileage figure for your automobile.

Aim For the Best Interest Rates

When you are shopping for a car refinancing loan, the most obvious tip would be to review multiple loan offers before you select the first offer you receive. Many consumers do not understand how to read their credit report correctly and will often make the mistake undervaluing their credit standing – make sure you get your credit score. In many cases, you will be pleasantly surprised by what type of car refinancing loan you can qualify for, especially if your credit score is solid and you have a tremendous amount of equity within your automobile. Again, using a multi-lender platform like myAutoloan.com, you can compare up to four offers for refinancing. You really have nothing to lose by shopping for the best loans available, so be sure to start with a multi-lender provider that offers you more than just one quote.

Compare Refinancing Loan Rates and Terms

When applying for a car loan Refinance or refinancing your current car loan, be sure to compare loan rates and terms. Every lender is going to have a different view bases upon their lending requirements. Find the one that best fits your needs. There are many websites online that have a longstanding reputation for offering their visitors quality refinancing offers from reputable lenders. If you are ever in doubt about a specific refinancing loan, check out the reviews and go with your instinct – there are many great lenders in the marketplace that can save you money on your car loan refinance. Use their tools to learn more and understand how the process works. Be patient and good luck.