About the show:
Tire Kickers Radio covers the business of buying, selling and leasing automobiles. This show lets you peak under the hood and see behind the scenes of the automotive industry. 411 for automotive sales professional and consumers, alike.

Jake and Eve have a variety of topics that should be of interest to basically anyone who owns a car.  On some of the past shows, they have  discussed how Dealers can make the consumer buying experience more convenient.   For example: The Registration process and using the Drivers License as tools to assist the customer by looking for key elements such as expiration dates.

On another show they talked about the Auto Cap program, and DA Consumer Fraud Units and how to utilize those entities if you feel that a dealer is operating unfair business practices.

Yesterday, they had on myAutoloan’s very own Heather Dietel to talk about lending and the auto finance world. 

Overview:

Again, the website is wsRadio.com

1. How the economy is affected when people are defaulting on their loans.
2. How can consumers make getting a car loan easier?
3. What are some options that the consumer may have that can benefit them with their loan?
4. When banks are looking to approve, what is the hardest item they need to overcome?

Very interesting and when we get the Podcast, we will post that into this article.  It’s a lot more interesting than having me try to outline the conversation.

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However, before applying for an auto refinance loan it is important to calculate how much benefit you can glean from it.  Just like a loan mortgage calculator, you can use a car refinance calculator to evaluate the prospect of getting substantial reduction on your payment.

If you want to get reduction on your interest payment, you can maintain the same auto loan term or reduced term.  If you prefer to have smaller monthly payment, you have to extend the loan terms.  But with a longer term, you end up paying more interest which increases the cost of your auto loan.  Keep in mind that whatever approach you adopt, will depend on your financial goals.

Before applying for an auto refinance loan, you have to be sure about the present valuation of your car.  Your car may have a depreciating value.  So, if the present value exceeds the amount you owe, you are mostly likely to get potential lenders for refinancing your automobile.  But if the value is less than you owe, you may find it difficult to get your auto refinanced.

There are no fees or obligation when you apply with myAutoloan.com for your auto refinancing program.  The ideas is to get several quotes/offers that are legitimate and ones that the lender will stand behind instead of trying to tick you.  All offers from myAutoloan.com are actual offer to fund – and again, there are no fees or obligation to apply and find out what you do qualify for.  If you can save money by reducing your interest rate, you can simply let the offer expire.

How much you will save from refinancing your auto depends on your total loan balance, earlier loan APR interest rate, new refinancing loan interest rate and the revised length of your loan term.  You can browse the Internet to search for lenders or come to myAutoloan.com that has lenders willing to work for your business by providing their best rates.  When you are ready, apply and see what happens.  If you meet the lenders guidelines, you will qualify for obtaining a new auto refinancing loan offer.  It’s your call from there! Good luck and happy shopping.

Guest Blogger Patricia Briggs provided the above entry – Thanks Patricia

More and more, smart car owners are looking to auto refinance in order to save money.  With the rise of online lenders, shopping for auto refinancing is easier than ever, and with lower interest rates it’s a great time to refinance your automobile.

Auto Refinance Made Easy

Refinance your auto through myAutoloan.com – it  is quick, easy and can save you money.  Taking just a few minutes of your time to fill out the auto refinance application can save you thousands of dollars.

How Auto Refinance Works

Getting an auto refinance loan is a quick and easy process.  You are just swapping out your current, high interest rate loan for a lower rate loan.   There is no cost to find out if you can lower your payment and or interest rate.

There is no application or balance transfer fee when you refinance your automobile.  Also, since you’re replacing the old loan with a completely new loan, you can choose any loan term and payment plan when you get auto refinancing.  Even so, remember the way to get the lowest interest rate and save the most money is to make the refinance loan term equal to or shorter than the old loan.

myAutoloan.com Auto Refinance

The best way to compare auto refinance loans is to get multiple quotes from national lenders.  With myAutoloan.com, you get to pick from up to four auto refinance loan offers from auto lenders . . . That’s why we say it’s “Your Loan, Your Way”.

A consumer can easily survive changing trends in the economy with a clear understanding of all of the available credit products.  Some complex financial situations call for refinance.  Auto refinance is a type of credit transaction that allows you to retool aspects of your current car loan.  In the simplest terms, you may qualify for a loan that features different terms than your original car loan.  In some cases, this will provide for a lower interest rate or monthly payment.

What Is Auto Refinance?

Specifically, auto refinance involves requesting a loan that will be used to pay off your current car loan.  You may choose to use a different creditor than the one that originally financed your automobile.  The new financier will take possession of the title after paying off your current car loan.  After carrying out this transaction, you will be bound to the terms of the new agreement.

Why Would I Want to Participate in Auto Refinance?

Banks choose the interest rates of loans based on those set by the Federal Reserve.  Since these interest rates change during different economic conditions, a creditor may be able to offer you a lower rate at specific times.  Right now, the rates could not be any lower as the rates from the Federal Reserve are low because of our current situation in the US.  For example, following the housing crash of 2008, the Federal Reserve pushed interest rates to historic lows. This allows banks to charge a lower interest rate on consumer loans.  Until the economy get moving again, the rates are going to stay low so there is clearly a window of opportunity.

If your car was financed during a period marked by higher interest rates, you may benefit from a refinance auto loan.  Some consumers participate in auto refinance to lower monthly payments.  Others pursue this course to reduce the overall total required to retire the debt.

Ultimately, this is a personal decision that must be weighed very carefully.  However, there are several situations where the average consumer benefits from seeking an auto refinance agreement from a new creditor.

Tips for Pursuing an Auto Refinance Arrangement

Clever shopping is important when shopping for a car loan refinance.   Luckily, you can find a variety of creditors online.  The world wide web enables you to unleash the competitive power of the market with limited effort.  In the past, you had to spend hours on the phone to accomplish the same feat.

However, carefully consider the fine print in your auto refinance contract.  You will be required to retire this debt.  Select an agreement that you can comfortably afford during tough economic times.  Also, consider how the new agreement affects the total value of the debt.

An auto refinance loan allows you to craft comfortable new terms.  It is important to consider every detail when making such an important decision.  Investigate how auto refinance might improve your financial situation.

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Tips to Improve Your Credit:

As of January 2011, new federal rules were initiated where creditors must notify consumers when their credit report has been used to provide them credit on less-favorable terms than other consumers.  These are what they call “risk-based pricing” rules under the Fair and Accurate Credit Transactions Act of 2003.  Risk-based pricing occurs when a lender offers a different interest rate and different loan terms based upon their credit history and creditworthiness.  That means that if you have been notified, you can obtain a copy of your credit report for FREE.  This way you can immediately review your credit report for accuracy – important because things do happen that create an error reporting situation.

Here is a new twist – instead of providing the risk-based pricing notices, a creditor may decide to provide you, when you apply for credit, (such as an auto loan or an auto refinance loan), with a free credit score and information about that score.  This expands the existing requirement that mortgage lenders must give consumers the credit scores they used in whether or not they decided to grant you a loan.  Right now there is a credit score disclosure requirement in FACTA, but it will only apply when you are trying to finance a home.  Under final rules issued in 2009 by the Federal Reserve Board and FTC, credit card issuers and other lenders must tell you when they’ve been granted credit on worse terms than other consumers, based on their credit report or on a credit score.

With risk-based pricing, if a lender came back and offered you less favorable terms for an auto loan because of your lower credit score, you were not provided a notice of that.  It was not considered an adverse action of you accepted their offer.  Now if you get credit granted on less favorable terms, and they are using risk based pricing, they will have to tell you that you are getting a higher interest rate because of your credit history.  So, let’s face it, awareness is important when it come to your credit and now you will know when you are getting a higher price as a result of your credit score and your credit history.  That’s the first step in getting you to correct it and improve it so that you save money when you need to apply for credit.

Tips and Tools:
Car Buying Tips  

Auto Loan Calculator

Tips to Improve Your Credit

30 Second Video

Save money on your current interest rate

The interest rate you received on your loan at the time of purchase may not be the best rate you can get. Shopping around for a lower interest rate and refinancing your auto loan can save you interest in the long run. Lower interest rates on an auto loan refinance will reduce your monthly payments while keeping the life of the loan at the same terms.

Lower your monthly payment

If you are currently having financial problems and are looking for ways to reduce your monthly expenses, refinancing your auto loan is a good way of acheiving this goal.  You can extend the term of your loan, reducing payments, but, this means you will be paying for this auto for a longer time than expected.

Reducing the term of your loan

You may want to choose to reduce the term of your current auto loan, reducing the overall interest you pay on the loan. Your monthly payments may be increased slightly by doing this, but, the savings in the long run are significant.

Getting equity from your current auto loan

You may want to get cash from your current auto loan.  You can acheive this by refinancing your auto loan.  If you have been able to payoff most of your current loan in a timely manner and have actually paid in advance, there may still be equity in your vehicle.  Refinancing your current loan at this time could enable you to take cash out – this is very lender dependent so it’s always worth asking.  Don’t take cash if you don’t have to – it gets a bit expensive in the long run.

To refinance an auto loan, you will need to shop around in order to get the best deal.  There are many auto refinance lender online that will help you through the process.  No matter what your reason for refinancing an auto loan, getting the best deal for you is most important.  Getting multiple quotes is always the easiest and fastest way to see what is available.  There are a lot of websites that talk about refinancing but they are really not licensed lenders – they are lead companies that sound like lenders – see if they have a BBB rating if you really want to see who is on your side when you apply.

Many online refinance auto loan companies will help you to compare prices from a number of suppliers.  This helps you to look at what is being offered in the way of interest rates.  These online refinance auto loan comparison companies are an invaluable tool in making your decision.

Tips and Tools:
Car Buying Tips     Auto Loan Calculator    Tips to Improve Your Credit

30 Second Video

One of the best places to find an auto refinance loan is through myAutoloan.com, an online source.  They are able to take your information and instantly offer you four refinance offers, which is a much higher amount than other lenders.  In addition, the better your credit score the more offers you will get.  However, even if you have less than good credit, this company can guarantee that you get at least four offers.

When utilizing this company, you can walk into a dealership with a check and have more power when it comes to negotiating the price of the automobile you are interested in.  In addition, you will not have to deal with the dealership on getting a loan that usually offers a much higher interest rate.

myAutoloan.com is an online lending platform and a licensed lending company, which means you can find out just how much you can qualify for with a new loan or how much you can refinance when it is convenient for you.  This is a huge plus as no consumer wants to take time out of their busy schedule to go from lender to lender to find what they consider is a fair offer.  That’s one reason why online refinancing loan companies are growing in popularity.  Many people have concerns dealing with security on these sites, which is a legitimate concern.  However, myAutoloan.com is a secure site and they don’t sell your information to unscrupulous or no name companies.  It’s also worthy to consider that it is accredited by the Better Business Bureau.  This means that consumers can rest assure that they are dealing with a reputable company.

If you are in the process of trying to find refinancing for an existing auto loan, or even are considering buying another vehicle and looking for financing, myAutoloan.com can be a great way to make sure that you are finding the best possible auto refinance loan with the best terms available.

Tips and Tools:
Car Buying Tips  

Auto Loan Calculator

Tips to Improve Your Credit

30 Second Video

Refinancing an auto loan is different than refinancing a mortgage.  It is much more simple to do than what people think.  If you are looking to take advantage of these low interest rates you can get an idea of how much money you can save each month by doing some comparative shopping online.  By comparative shopping auto refinance rates you will have the opportunity to see dozens of different rate quotes from different lenders in just minutes.  Using a secure website like myAutoloan.com will give a borrower the ability to see how much money he can save every month as well as over the course of the loan. See for yourself using this calculator.

If you are having problems making your monthly payments on your car check out myAutoloan.com.  Here you can get quotes for free for an auto refinance loan.  You can get your interest rate lowered or even increase the term of your loan, or both!  Either way you will have a lower monthly payment and may be able to pay less in interest over the course of the loan.

This is much different than searching for mortgage rates.  You do not have to meet any lenders face to face at any time and there are not hundreds of papers to sign.  It is a five minute process of plugging in your personal information, and based on your credit rating, income, debts and other personal financial information myAutoloan.com will produce at least 4 lenders that are willing to work with you.

Even if your credit rating is not ideal, myAutoloan.com will find you a lender!  Check it out today and take advantage of these historically low interest rate by refinancing your auto loan!!

Tips and Tools:
Car Buying Tips  

Auto Loan Calculator

Tips to Improve Your Credit

30 Second Video

What is an Auto Refinancing Loan?

Auto loan refinancing is nothing more than replacing the existing auto loan with a new one with a lower interest rate, so that lowers the monthly payments.  An auto refinance loan alters the original loan terms and conditions, and you get the new rates and payment plan according to your credit and ability to repay.  Thus, an auto refinancing is loan is the new loan that you take out in order to unwind the previous loan terms.  You can get an auto refinance loan either with the same lender with whom you have the loan or can try getting one from a new lender.  Obviously, you will want to shop around.

Why should you refinance?  Some reasons why you should refinance your auto loan are:

Want to make lower monthly payment:

You should refinance in order to lower the monthly payments if you are facing problems in keeping up your auto loan payments. If you get an auto refinancing loan with lower interest rate the monthly payments that you will have to make gets reduced too.

To avoid defaulting on loan: 

In order to avoid defaulting on your auto loan, you can get an auto refinance loan.  As you refinance your loan, the payments get lowered and so you need not fear of defaulting on the loan.

Need extra money: 

If you want to save extra money and if the interest rate on auto loans is lower than that of your current loan, you can refinance.

Improving your credit rating: 

With refinancing, you can even improve your credit rating as you make your regular payments according o the new payment plan.

Investing your money in a car is perhaps the second most expensive and important investment.  However, you generally need to have good credit in order to get approved for a loan.  In case you don’t have good credit and you want to improve your credit, you can get a loan from some lenders but the interest rate on these loans will generally be higher in comparison to other loans.

The length of time you have to pay off a loan varies from 12 months to in some cases as much as 72 months, depending on whom you’re getting the loan from.  The average these days is probably 60 months.  Do keep in mind, though it sounds great to have a loan stretched out as long as possible, however, the longer you have to get it paid off, the more money it will cost you over time.  You know, “time is money.”

Down payment and interest rates also vary depending on the institution you are dealing with. If you choose to refinance your vehicle with a bank or financial institution you might find them somewhat stricter in their options available to you unlike choosing an auto refinancing company that specializes in dealing with auto refinance loans.  In other words, searching online for a loan company saves you time and give you more options.  That’s a good thing!

It’s a good idea to consider how much you can afford and shop around for different loan companies before you purchase your car.  There are fees that are associated with refinancing your vehicle such as registering your vehicle again and transfer of holder fees.  They are usually blended into the loan itself so that there is no out of pocket expense with 99% of auto refinance loans.  Most reputable online auto finance companies don’t charge you a fee, and if they don’t, mostly likely they will make it clears that there are no charges and no fees.  There may also be other fees associated with this change and they may differ depending on where you are located so did take the time to investigate what fees are associated with refinancing.

Most companies offer an online application form, with standard questions such as what type of loan you’re looking to get, how long you are looking to take to pay off the  auto refinance loan in question as well as questions directly related to the car itself, such as what year, make and model you have.  If you work with a company that provide multiple offers for you to compare then once you’ve filled out all the required questions it often takes only a few hours before you hear back from competing lenders. 

In many cases, you will get more than one offer to consider.  Just don’t be surprised if you only get one or two offers since the finance market has crashed and has yet to recover.  It’s slow but it is coming back little by little.  Once you’ve been accepted and accept a term from a lender the lender will usually then walk you through the process step-by-step until the refinancing process is complete.  Just know that you need to compare so good luck and good hunting.
Tips and Tools:
Car Buying Tips:     Auto Loan Calculator:       Tips to Improve Your Credit:

Free Auto Buying Guide:

Of course to begin with, when looking for an auto loan or an auto refinance loan, you will need an adequate income. If you are unemployed then the chance of being granted an auto loan will be slim at the best. It would be nigh on impossible to convince a lender you can repay the funds if you have no discernible source of income.

Apart from your employment status, the lender will also need to check your credit rating whether you are applying for a car loan or an auto refinance loan. This is calculated from your past history of financial transactions. Every loan and credit card taken out in your name would be included in your credit card as well as information relating to whether or not you have made repayments on time. If there are any black marks then the chance of getting an auto loan would be massively reduced.

If you’ve a poor credit rating then you may still be able to get a loan but you would have to take a few extra steps. For example if you are living with your boyfriend, girlfriend or parents than they could be a cosignatory on the agreement.

Don’t forget to use the tools for calculating how much payments would be at different interest rates.  Being prepared is the smart thing to do.  Auto loan calculators are easy and very helpful in understanding what you can afford.

At the end of the day it pays to compare as many auto loan options as possible. Today there are literally hundreds of lenders you can check out, all would offer differing terms and conditions. Before signing on the dotted line be certain that the lender you have chosen is above board and has not has any complaints made against them.  Check out myAutoloan.com for a BBB A+ rating and millions of satisfied customers.

Tips and Tools:
Car Buying Tips  

Auto Loan Calculator

Tips to Improve Your Credit

30 Second Video

It is significantly important to maintain a steady job with the same employer for a minimum of six months.   Many lenders want you to have 1 year or more – so in this crazy lending market, with more regulations in store for the banks, figure more is better.  So just to reinforce what is taking place in the market, in some cases, 1 years of employment is required but having a steady job is the key.  This will provide proof to the auto refinance company that a steady income is present. Without a reliable source of income, there is no security in knowing how monthly payments will be made each month and thus, a turn down is highly probable.

It is crucial to do as much research and investigating as you can before choosing a company to refinance with.  First of all, the initial lender (the company you are using now) will not refinance an auto loan that was processed through their establishment.  Why?  Because it is not to their advantage to lower your interest rate so they will say no.  They already have the borrower trapped with high interest, so it would be a bad business move for them to decrease their own profits by lowering the APR on one of their own loans.  There may be many options to choose from locally, but there are even more available companies online.  Through diligently searching and comparison of rates, the borrower should be able to find a company that holds the ability to satisfy the desired monthly payment.

When seeking low interest rates, the most valuable component is being well-educated and knowledgeable in the credit score/history that you obtain.  Some of these services are really worth it if you want to get ahead in the borrowing game.  Car dealers often look for the opportunity to take advantage of people that are not aware of their own credit scores.  This lack of knowledge allows a few dealers to add an additional increase to the APR, while telling the buyer that it is due to bad marks that showed up on their credit check (whether there are bad marks or not).  The embarrassment and lack of knowledge/questioning makes it hard for the purchaser to argue the facts with the dealer, allowing the less than fair rates to follow throughout the entire term of the auto loan.  Just so that you know, working directly with a lender is the best way to get the lowest car loan rates possible.

A credit score is a good source that can be used to determine when it is best to refinance.  A person can begin watching their credit score for a few months before applying for a refinance loan, using an increase in their score as a cue to start applying for a new auto loan.  A couple points can make a very large difference in the rate that is given, and can save thousands of dollars by the end of the loan term.

Making car payments on time and paying off a couple of credit cards before trying to get an auto refinance loan will also provide more options for a person seeking to do a refinance loan. On-time monthly car payments are a necessity for a majority of companies that work with refinancing loans.  This shows the integrity of the auto loan seeker.  Credit cards can be a positive influence on credit scores, but too many credit cards with high balances will provide negative feedback. Even a few extra payments on credit card balances can make a noticeable difference on a credit score.

A car loan refinance can allow affordable monthly payments, along with saving a person thousands of dollars by the end of their car loan term.  This is a smart move for those who cannot afford their car loan payments in today’s uncertain economy.  The extra money that is given to the bank/financial establishment could be used for paying other bills, or even enjoying extra luxuries.  Finding a new source for an auto loan may take an excessive amount of time and energy, but the benefits can make a significant difference in the quality of life that is achieved.

myAutoloan.com for auto refinancing loan information
 Handy tools: auto loan calculator -

Each person who utilizes credit, from credit cards to auto loans, has three standard credit scores, as a person’s creditworthiness is tallied separately by the three major credit reporting agencies.  The scores – known as FICO scores, for Fair Isaac Corporation, the company that developed and pioneered credit scoring about 50 years ago, range from 300 to 850.  The most current national average suggests that the national median score is about 675.

So what does one do if they want to improve their credit score?  Let’s say you would like to consider an auto refinance  loan but think you need a higher credit score to do so. 

There is no doubt that the effort to raise your score is a very difficult one.  Consider working with a credit repair company to assist you.  What you need is to find the right solution for you, as every situation is different.  If you work with an outside company, you need to make sure that your consultant will provide a private and confidential review of your current financial situation. These days, credit is important for securing your next mortgage, auto loan or credit card. This is why it is so important to take control of your personal credit score.

Getting a Higher Credit Score

Improving your credit is not only worthwhile, it a smart thing to do.  A common misconception is that getting more credit means that you are more credit worthy.  That is completely incorrect because that’s not what happens.  For example, throughout the year, many retailers and credit card companies often offer you the chance to save 10-20% or more on purchases by opening a credit card account.  If you are also looking to purchase buy a car or trying to get a car refinance loan during that time, you might want to stop and think twice about signing up.

Why?  Because by opening several credit lines in quick succession can actually lower your credit score.  This score is used by every company or business that provides credit from car dealerships to mortgage lenders and they calculate just how likely you are to repay your debts. You need to know that lower scores mean you may be charged higher interest rates on auto loans and other types of borrowing.  They can also affect you in less obvious ways.  Here are a few key principles that you can follow to raise your credit score.

1. Basically the most important way to improve credit scores is also the least complicated.  Pay your bills in full and on time.  Your overall history of making payment on your current bills accounts for about 35% of the FICO score.  Missing credit card payments or submitting the minimum due each month will immediately lower scores, as will any debt collections or bankruptcy filings that show up on your credit report.  The only good news here is that credit scores reflect your most recent activity, so major negatives like collections will eventually mean less and less, even if it take years to work their way off your credit report.

2. Build up an active and lengthy credit history.  This means it’s usually better not to close out all of those old credit cards – unless new ones are replacing them – because keeping them open builds your credit history.  This makes up about 15% of the FICO score.  Keep a few dormant accounts active.  This will help lower the balance to limit percentage since limits are factored into the credit utilization formula.

3. Don’t open new accounts within 60 days of making a major purchase.  This results in about 10% of your score.  Taking out new credit lines raises red flags because it makes you look riskier.  This is why it’s best to avoid all those retail cards during the holidays – unless of course, a temporary decline in your credit score is no big deal.  Just be smart and think twice about your future purchases and what looks likely to take place over the next few months.

4. Maxing or topping out your credit cards will drop your score like a rock.   Even using 50% or more of your limit can cause problems because it increases the risk that you may not be able to repay.  For anyone looking to boost their score the key is to maintain a low “credit utilization” level.  This refers to the percentage of available credit that you have on each of your credit cards.  The credit utilization level falls under a complex category known as “amounts owed.” This makes up 30% of the FICO score.  If you have five credit cards with a $5,000 credit line each, for example, it’s not wise to carry a balance of more than $2,000 per card.  It’s better to carry smaller balances on several cards than to pile everything onto one card.

5. Get a copy of your credit report and make sure your credit report is accurate.  This is very important.  Since credit scores are based on credit reports, it’s very important to make sure the information in your reports are fee of errors and fraud.  Federal law gives you the right to get a free report from each of the major credit bureaus once per year.

6. Have a wide variety of credit experiences and loans, over time.  This is called diversification and means that you have had and get credit for having a variety of loans, so it’s better to have an assortment, including installment plans like auto loans or mortgages rather than simply credit cards.

Want some help to improve your credit score?  Fast, efficient and effective help is just a click away – Improve My FICO Score

Don’t Settle for High Interest Rate Vehicle Finance

Just because you have had a few blips in your credit history, you shouldn’t settle for extremely high vehicle finance rates.  Your dealer might have convinced you that you have to settle for a high interest rate loan, but you owe it to yourself to find out for sure.  It takes just a few minutes to fill out our online vehicle refinance application, and it could save you big money.

Vehicle Refinance: Be Prepared

Be prepared for your vehicle refinance loan, and you’ll save more. Don’t be afraid to shop around for the best refinance deal. Shop online for the best refinance rates to save the most money and get the lowest rates possible.  At myAutoloan.com you can find multiple vehicle refinance offers direct from lenders, offering the lowest APR and costs available to you.

So how much are we really talking about here? For example, let’s say you bought a new car in the summer of 2008.  Just for this example, let’s say there were a few blips on your credit report that lowered your score and so the dealer told you that your auto loan would be 11 percent on a 60 month loan for a $24,000 car. Your monthly payments are $500.

Now let’s say that you look for a car loan refinance and you find an actual finance company that will do the application and approval process all online.  There are big differences in licensed finance companies and websites that promise to refinance and just sell off your information.  But that’s another story, for now, you have determined that the website is legitimate and actually works for you to get you refinanced.  That’s great because, as we identified earlier, rates are now at the lowest point in years.  If you want to lower your payments, do another 60 month loan.
 
If you want to lower the overall cost of the loan, refinance the balance that you owe on the car and do so in the fewest amount of months that you can, as long as you can handle the monthly payments. You could refinance the balance of your car loan and lower your payments to about $350 a month. 

How?  Because ideally, you have not only improved your credit, but you have been offered a very competitive interest rate and that could translate into a savings of nearly $6,000 over the life of the loan.

We could run a number of scenarios but one quick way to check out rates and payments is to use an auto refinance calculator to estimate payments and loan costs.  Other examples could well be more dramatic. In some cases, a new-car buyer could wind up with an auto loan based on an 18-percent interest rate. By refinancing at a competitive rate, the monthly payments would be slashed, and all it takes is about 10 minutes to fill out the application.

Regardless, you could save some cash by investigating the possibility of an auto refinance loan and get the New Year off to a great start.  Good luck and good financing.

You have probably heard of auto refinance before. Or simply refinance. The term “refinance” actually refers to a financial situation wherein a borrower finds financing to pay off a current loan.  It’s really pretty simple and not difficult at all to accomplish.  Auto refinance is done less often than it is in the real estate market, specifically with home ownership.  In fact, refinancing is one of the most popular methods of getting financing for a home loan.

With auto refinance, the same thing applies. Auto refinance is basically paying off one loan with a new loan. The goal of auto refinance is to allow you, the borrower, to save some money from your monthly loan obligations.  That can be in reduced monthly payments and/or in reduced interest APR that also helps lower the monthly payment.  And as such, it is one of the best kept secrets in the financing industry.  For years now, people have refinancing their homes and saving thousands of dollars when rates go lower. However, the practice of refinancing car loans has not quite been at the level of home refinance, but it has clearly gain popularity with interest rates having been lowered to 25 year lows.
 
One thing that is so often overlooked is that if you have improved your credit over say, six months, you can actually get a lower interest rate than when you purchased your car.  This is almost always true if you’ve had a few late payments in years past but have been on time and have taken control of your credit lately.  Why don’t more people know this?  Perhaps the reason is most people don’t know that since an auto loan has so much less paperwork associated with it, compared to home loans, they are naturally skeptical about how simple they are.  Regardless, auto refinance is still a good choice for many people, provided that the situation is right, you’ve done your home work and you are serious about keeping your credit in good shape.

When to get an Auto Refinance Loan
The way for an auto refinance loan to benefit you is if you can get it when the interest rates are lower than when you originally made the purchase.  This is true for auto and for Mortgage rates.  Rates tend to move up and during economic challenged times, they move lower. Therefore, since interest rates are low, then it’s likely that auto loan rates are low also.  Low auto loan rates typically mean lower monthly repayments can be obtained and that you can save money in the long run by reducing the APR on the loan.
 
Only few people really understand the time value of money.  In other words, you need to keep in mind that the longer you pay for a loan, the bigger amount of money you actually spend for it.  It simply costs your more of your cash to pay for the loan.  Thus, in some poor credit situations, by the time you get the loan paid off, you could have paid more money on interest than on the principal.  Just make sure you take control of the situation and don’t allow that to happen.  This is why auto refinance is important for 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 an auto 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 down their APRs.  Let’s say, for instance, you make an auto refinance loan for $16,500 on a new Honda Accord.  At the end of six months, you agree to pay off the amount at 21% APR. So for a few months, while you might be working on getting your credit back in shape with on time payment and reducing your overall debt,  your monthly loan payment will be $446.

After say 4 months, you decide to apply for an auto refinance loan.  However, this time, your loan rate is at 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.  Yes, it really is possible.  Apply now to find out if you can benefit from an auto refinance loan.

I’m really not trying to be judgmental but as they say, you do the math.  Let me summarize.

Point 1
A vehicle getting 15 mpg and averages 12,000 miles per year uses 800 gallons a year of gasoline.  A vehicle getting 25 mpg and averages 12,000 miles per year uses 480 gallons a year.  So, the average Clunker transaction will reduce US gasoline consumption by 320 gallons per year

Point 2
Cash for Clunkers DOT officials reported 690,000 vehicles sold during the program – so that’s 220.8 million gallons per year.

That equates to saving close to 5 million barrels of oil per year. I repeat—per YEAR.  5 million barrels of oil is about ¼ (25%) of one day’s US consumption.  And, 5 million barrels of oil costs about $350 million dollars at $70/bbl.

Point 3
Our Government “gave” each Clunker Trader approximately $4,500 per car for 690,000 transactions which cost US Taxpayers $2,877,000,000–not including Washington’s astounding Administrative costs.

President Obama said in his speech to auto workers in Ohio recently, “One of the other efforts we undertook was the Cash for Clunkers program. Folks said that wouldn’t work either. That program was good for automakers, it was good for consumers, and, by the way, it was good for our environment.”   What I did not read in that speech was that it was good for taxpayers, and here’s why.

We all invested and paid (through our taxes) more than $3 billion+ $150,000,000 to administer, to save $350 million.

And the return on investment is….Priceless

In the second quarter, 0.80 percent of car loans were 60 to 89 days past due, up from 0.66 percent during the same period in 2008.  Thirty-day delinquencies rose 14.6 percent in the second quarter to 3.06 percent, up from 2.67 percent the previous year.   Combined, 30- and 60-day delinquencies amount to $25.5 billion in loans at risk. 

Why is this significant?  That’s because it prompts lenders to tighten their lending criteria.  The result is that it pushes many consumers out of the market altogether.  Sure some buy used but many just drop the purchase to wait out the strict requirements being applied.
 
Michigan was among only three states to show a reduction in 30-day delinquencies, according to the study’s findings. The other two were Alaska and Nebraska.
 
At some point the lending markets has to turn so that pent-up demand eases.  However, for right now, it’s a tough market and consumers are not getting much of a break on the cost of financing, that is unless you’ve got a high credit score.  In the meantime, we all wait. 

For the balance of the year SAAR (Seasonally Adjusted Annual Rate) figures will probably close the year out at just under 10 million per month annualized.  Next year by February, we should see things starting to break free.  Let’s hope that prediction holds!

The government of the United States is offering $3,500 and $4,500 vouchers for vehicles traded in toward the purchase of a new car.
Here is a quick overview of the Cash for Clunkers program.
1) Visit the www.CARS.gov for current information about the program.
2) Determine if you qualify for the program and locate a dealer.
3) When you purchase or lease a new vehicle the dealer handles the submission to the NHTSA.
4) NHTSA ensures that your purchase meets all of the requirements.
5) About 10 days later the NHTSA credits the dealer if all requirements were met.

There are several restrictions to the program and it doesn’t last forever.
• New car purchases only (no used vehicles allowed)
• Car must be purchased between July 1, 2009 and November 1, 2009
• No cars older than 25 years
• You must be able to drive your car to the dealership for trade in
For a complete list of restrictions visit www.cashforclunkerfacts.com

Don’t wait. This is a first come first serve program. The funds to the program are limited and it will end before November 1, 2009 once the funds are gone.

Apply at myAutoloan.com to finance your new car purchase.

Online auto financing has become easier to obtain as well as seeking and obtaining helpful information on what your auto financing options can be. The process is fast, convenient and absolutely safe. (Did I say it was Free too?) myAutoloan.com requests and requires you to fill in a single page application form. You will have to give some financial and personal details. These are required for us to understand and match your requirements and repayment ability to our network of lending partners. All the details provided at myAutoloan.com are stored on a secured server and stern steps taken to preserve your confidentiality. Apply for a new auto loan, an auto refinance loan or a used car loan, at myAutoloan.com from either your home or office.

Apply Now
Auto financing through myAutoloan.com is a really user friendly and a cheap way of getting funds for your automobile. Many people apply for dealership financing. However, dealership financing is expensive as they mark up all interest rates. At myAutoloan.com you will get auto financing at low interest rates based upon your credit score. Also the repayment plans from our lender network are flexible with monthly repayments in keeping with your monthly budget. Auto financing is usually for a term ranging from 3-5 years. Auto financing for all manufacturers of automobiles is provided. Go on, give us a try. Check us out first and then bookmark us so that you can consider us next time you need a replacement auto or want to trade up, get your auto loan direct and save a ton of money. Follow us on: Twitter & Facebook

“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.

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.

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.

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 tremendous 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!