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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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.

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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.

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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!!

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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.
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A Refinance Car Loan Might be the Answer

Have you ever used car loan refinancing to lower an existing car loan with high interest rates and then hopelessly watched as the interest rates fell lower and lower?  If you have not done anything about this situation you need to use car loan refinancing as a solution.  Because interest rates are starting to rise again, it is very clear that the days of low refinancing interest rates will be going away by year end.

Before car loan refinancing interest rates rise again, you should act fast to obtain huge savings on your car loan.

Refinance Car Loans Can Offer Better Rates

A car Refinance loan can help you get rid of your high interest rate car lone and trade it for a loan that has a lower interest rate in return.  Refinance your car loan today and begin to save $100’s on your car loan payments immediately.  

Car Loan Refinancing as an Option

It is surprising that most people never think of refinancing a car loan. Car refinance is one of the best options available, and it can save you lots of money. You can refinance a car loan just as you would refinance a home loan but there are no costs for appraisals, and other miscellaneous charges.

Pay Off High Rate Loans

When you go through a car refinance loan you pay off your current high interest loan by refinancing your car loan through a different bank or online lender that has a lower APR.  This can save you a lot of money as a refinance car loan has the opportunity to make your monthly payments lower.  You could save $100 or more just by reducing the rate by 1 or 2 percent.  Since your interest rate drops when you refinance, you can pay off the balance of your car loan in a shorter amount of time if you choose.   It does not hurt you to investigate and find out if you can save some money with a refinance car loan.  The sooner that you take action to lower your payments by going online and completing an online refinance car loan, the faster you will get competitive car loan refinancing offers to review.

Refinance Your Car Before Rates Begin To Rise

With dropping interest rates, car loan refinancing has become very popular. Interest rates will no doubt change by going up and down over time.  Be alert to these changes and when they drop, as they have just done, checkout the possibility of a refinance because interest rates have begun to rise again, it is best to refinance your loan as soon as possible.

Refinance Car

Car loan refinancing is most important for people might have had some personal issues in the past that increased their credit score and who are paying a very high APR.  One recommendation would be to use a company with a network of lenders that will offer you a refinance car loan with a low APR, based upon having multiple lenders’  who are trying to secure your business.    One suggestion is to give myAutoloan.com’s secure online application form a quick review and then apply for a refinance car loan inquiry today.  You get to see what the market has to offer with only one loan application and compare loan offers that could save you money.

Multiple Car Refinancing Loan Offers

Fill out a refinance car loan form at myAutoloan.com and they will get you up to four free refinance offers from leading banks and online lenders within the next 24 hours.  When you need to refinance a car loan it’s wise to compare rates and terms from their network of

national lenders.  They are real lenders who provide real loans in real time.  Filling out the refinance car loan form is simple. The process should not take you more than 4 minutes. Choose the refinance car loan option that looks good to you and you can get rid of that high annual interest rate within days.  What do you have to lose?

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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.

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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.

How it works – The auto refinancing process is similar to the mortgage refinance process, but it does not have the costs and fees normally associated with the mortgage process. Basically, you obtain a new car loan at a lower rate to replace your first loan.  Ten years ago, auto refinancing was pretty rare.  They were available but just not much was known about them.  Now that interest rates have dropped dramatically and we continue to sit in this recession, auto refinancing has become increasingly popular. If you decide that you want an auto refinance loan, consider letting myAutoloan.com assist you in the process.  It’s fast, easy and there are no fees or costs to see if you can lower your payments or reduce the APR% on your auto loan. Apply for a no obligation, no fee auto refinance quote online to see how current rates might save you some money.

How much can you save – Refinancing can save you a lot of money, if you play your cards right. For example, if you currently have an auto loan for $23,000 at 11% APR for 5 years, you’ll pay $500 a month. If you can refinance this loan payment to $400 a month, you can save $6,000 over the life of the loan! The higher your current loan rates are, the more you can save by refinancing. Many of our lenders offer auto refinancing rates around  4.75% -6% APR.  Of course, it always depends on your current credit rating at the bureaus.

Who should refinance – Any individual who have an expensive auto loan or who wants to reduce their monthly payments, or lower their rates should consider auto refinancing.  Consumers with expensive loans from a car dealer can save big by refinancing with a lower rate from myAutoloan.  If your credit scores have improved significantly since your original car purchase, you should be able to reduce your rates which will save you money in the long run.

What are the requirements – Not all auto loans will qualify for refinancing. Since most lenders require you to have at least $7,500 due on your current loan in order to refinance, you might want to recheck and take a look at your balance.  There are also common restrictions on the age of the car and the car’s mileage.  Generally that means that if you have less than 70,000 miles and the car is less than 6 years old, you should have no problem getting an offer.  Plus, you may need to have a credit score say 525+ or so to qualify for a competitive refinance rate.

What are the dangers – While auto refinancing can help you save a lot of money in some situations, it may not always be a good decision. If you are thinking about refinancing, be sure to evaluate if it is really going to help you out because of payment reductions or APR % decreases.  Just don’t kid yourself before you really take a good look and make sure that it’s a smart thing to do.  By that I mean just be aware that a refinance loan may extend the term of your car loan in order to reduce your monthly payments. This could result in increased costs over the life of your loan.  So again, I’m just trying to make sure you are thinking this through so that it’s to your advantage, based upon your circumstances.  For most people, it’s a no brainer – if you can save some cash, just do it!

Refinancing allows borrowers more flexibility and freedom with their auto loans and with the cash that they save. People with expensive auto loans are no longer stuck with them for the life of the loan. Use them wisely and it’s clearly to your advantage! Find out today if an auto refinancing loan can help you save money and let us help you see just how easy it can be.  We would love to show you what we can do.

Refinancing your car loan is an ideal way to lower your overall interest cost or reduce your monthly payments.  If you get lucky, you can do both.  By using an online multi-lender auto loan finance company, you can be assured that you are finding the lowest rate.  To be sure you are getting the best offer; follow these three tips before you refinance your vehicle.

1. Know Your Goal

Before you refinance your auto loan, decide what your goal is. Do you want a reduced interest payment or have a smaller monthly payment? With your goal in mind, you can choose terms that will best meet your needs. To find reduced interest payments, it is best to have improved your credit rating. One easy way to do this it to pay your credit cards down to 50% of their limit. You can also find lower interest rates by choosing a loan shorter than the typical five year period. Regardless of what you are looking for, it does not hurt your credit score to look and apply for an auto refinance loan.

Remember, smart people shop and the credit bureaus score it as only 1 inquiry, within a two week period.  To reduce your monthly payments, look for a loan for a longer period.  You don’t even have to find lower interest rates to lower your monthly payment. However, you will be paying more in interest payments over the course of your loan.  Just review your options and make a good choice for you, and know what you want to accomplish on the short term.

2. Go Online But be Prepared

To speed through the refinance process, gather all your financial information, for the auto you want to refinance, such as lender, monthly payments amounts, estimated payoff amount and current rate.  It’s not critical that you have the VIN number or exact APR’s or amounts, but if that info is handy, have it ready and with you as you apply.

If you don’t know the current balance on your loan, you can call your current lender to get the exact amount.  Having a copy of your last tax forms will also make filling out the forms for quotes or a loan application easy.

3. Compare Quotes – Get your Refinance Auto Loan

When you are ready to find an auto loan, compare quotes before you pick a lender. You can get quotes from online lenders from our site – all you need to do is apply.  What we do is match your application up with our lender base and electronically post lender approval information on our site.  It is secure and completely private so that you are the only one that can see the information.  Getting multiple offers is important to you so that you can have a choice and pick the offer that is best for you. Your Loan – Your Way.

Not a bad approach, right?  You don’t want to get locked into a deal that you can’t pay early.  While rates and terms are important to compare, you also be aware that there are no fees for applying or using us for your auto loan. Select the rate that works for you and take it from there.

After a small amount of paperwork, you can have your new lender pay off the old one and you are on your way to saving some money.  Good luck and let us know if you have questions.

“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.

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.