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.

You’ve decided to acquire another vehicle–great! Before rushing off to the dealership, you’ll need to consider how much you can afford in monthly payments. Deciding this point will determine whether you look for used or new auto financing.

Once you know about how much you can afford in monthly payments, it’s time to think about what type of loan you want from auto loan finance companies. Options for financing a car include loans for autos, new vehicles, used vehicles purchased through a dealer, private party vehicles, auto refinance, and auto lease buyouts.

Keep these points in mind when choosing an auto finance company specializing in vehicle loans:

1. Do I want to buy from a car dealer or from a private seller?

2. Do I want to purchase outright or lease the vehicle? Auto Lease buyout loans are commonly required at the end of the lease period if you choose to keep the car.

3. Will I be paying off my loan on-time or early? Some loans carry stiff prepayment penalties. Not all but just be aware.  Most reputable auto finance companies tell you up front if there are fees involved.  For most, the process is free and with no obligation.

Action Steps
The best contacts and resources to help you get it done

Learn about Auto Financing
Study the different types of auto financing solutions.  Each one will have pros and cons, depending on your situation. Get familiar with how a lease works, read the fine print and precautions about financing an auto directly through a dealer, and get tips on how to fix less-than-perfect credit.  There are a lot of places that this information is available but here is our recommendation after years and years of auto lending experience looking out for the customer.

We recommend:  Read and understand the sections of our Auto Buying Guide that provide you a quick guide to the steps involved in buying and financing a car.  It’s down to earth and easy to understand.

Get automotive financing even if your credit isn’t so great
If you have had credit problems in the past, does that mean you’re reduced to driving whatever you can afford to pay for with cash? Not necessarily.  Some companies making car loans specialize in customers with bad credit.  We work with many of those companies so that we have done the legwork and that will save you tons of time.   Many vehicle financing companies have partnerships with car dealers prepared to offer bad credit car loan programs on car and truck loans.  You may be able to pre-qualify for a bad credit auto loan regardless of past credit challenges.   We never know until you apply and there is no cost or obligation to find out, even if you decide to purchase.

Have one company do the legwork of finding car credit
The Internet has revolutionized how we do a lot of things, including how we look for auto loans. Look for websites that are secure, first of all.  Next, verify that you are under no obligation if you enter your information on a website. Bottom line, use the ease of the Internet to make auto financing fast, easy, secure, and hassle-free.  You know you are at the right place, right?  That’s exactly what we do and 7 years and millions of customers stand behind us.

We recommend:  (I wonder who that might be, LOL) myAutoloan.com  – They can put an end to applying at several sites on the Internet and driving all over town trying to get the best deal on your auto loan.

Tips & Tactics
Helpful advice for making the most of our Auto Buying Guide

Be extremely careful with your personal & business information while doing research on financing a car.  Make sure you are dealing with a reputable company with a good track record to prevent possible theft of your identifiable information.  BBB information can be a real time saver too.

Research, research, research.  Get quotes on automobile financing from several providers by using a finance company that will show you up to 4 loan offers and not run you around testing you with a one at a time approach.   myAutoloan.com does!
Be wary of automotive financing car dealers claiming to specialize in financing bad credit loans.  Make sure the vehicle is actually worth the stated price. Some less than honest dealers artificially inflate a vehicle’s price, generously reduce that inflated price, and finance the balance at high interest rates.

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.

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