Category Archives: Auto Refinancing

Top 4 Mistakes When Refinancing Your Car Loan

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

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1. DON’T: Assume your credit is great

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

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

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

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

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

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

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

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

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

4. DON’T: Overextend the new loan terms

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

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

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

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

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

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

The Best Tips to Use When Refinancing a Car Loan

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

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

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Stay on Top of Your Credit Score

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

Find Out What Your Car is Worth

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

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

Aim For the Best Interest Rates

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

Compare Refinancing Loan Rates and Terms

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

Financing a Car: How We Help

When You Have Bad Credit

It may seem that financing a vehicle is an activity reserved for people with high credit scores and superior financial situations. While they may have a host of options available when it comes to getting that loan, you are not precluded from a financing plan due to a  low credit score.  Instead of creating a lot of frustration in your vehicle search or purchasing a sub-par vehicle, know that our company helps you to find a competitive vehicle finance loan for the car you want to finance.

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Understand Credit Scores and Vehicle Financing

In order to really understand the process, you should know some more about credit scores and vehicle financing.  Financing a car is essentially taking a loan out on the vehicle, and using the vehicle as security for a lender.  Being able to obtain vehicle financing before you ever go to the dealer is a really smart thing to do.  Getting multiple offers and having a choice of which one you want is even better!  If you have taken out loans in the past, you likely have gone through this process of “Waiting – more waiting – and wait a little more before anyone finally gives you an approval.  The lending entity evaluates your financial situation to determine if you present a risk when taking out a loan.  You just sit and wait.  People who have bad credit scores are sometimes denied loans because they are determined to be a higher risk.  However, www.myAutoloan.com  understands that situation can occur but that these situations do not have to define you.  What if you could get more than one offer, even if your credit is not the best?  What if you could choose a lender that would work with you and is competitive in rates that they offer?  You get where we are going.

Know Where to Turn

Applying for a loan at just any lender might not be the best idea because you may find that you cannot get approved or that you do get approved with extremely high interest rates because of your credit situation.  Filling out multiple applications also take a lot of time and is not efficient.  Instead of taking this potentially damaging path to vehicle financing, apply with one application and know that we have lenders available for people with bad credit.  How great would it be if you could get up to four offers within minutes?  We already know and understand that some individuals are not in the best credit situations, and we have numerous lenders ready to approve and offer you a competitive loan rate that will help you re-establish your credit.  You need not to worry about the fear of rejection – your chances are very good that we can find lenders willing to work with you for vehicle financing.  

Reduce the Fees

Even if you are working on getting your financial situation into better shape and have made progress, you probably don’t want to take any steps backward.  Getting a loan from a car dealership could mean that you end up paying all kinds of additional fees.  Instead of just paying back the loan and the interest, you have numerous fees added on so that the dealership is able to make extra money.  Going through this process is unnecessary when you can get up to four offers for auto financing – Having choice means that you can get a lower rate loan and put that extra money towards bettering your current financial situation.  Our business is not out to make things difficult, and you would see that if you apply.   We want to help you get a vehicle finance plan that works for your financial situation with competitive rates.

See the Options

With most online lenders, you may only receive only one vehicle finance option due to your credit situation, but by working with our company, our goal is to get you up to four offers that provide you with choices.  Think about it – You may receive up to four potential offers!  Then, you can take the time to review the offers to see which one fits best with your needs.  At myAutoloan, we work to provide you with an experience that someone with great credit experiences.  You should have the same great experience by working with us. You deserve to feel as though you are being treated just like everyone else and thus, having a positive experience is something that you can look forward to.

Better Your Credit

Taking out a loan also means that you have the opportunity to better your credit situation.  For example, by paying your monthly payments in full and on time each month, you can see your credit score go up and up.  You might worry that procuring a loan on a car is going to make your credit situation even worse, but it actually improve your credit status and builds your credit score each and every time that you make on time payments.  

If you have bad credit, you don’t need to delay looking for a car loan.  Instead, work with lenders who want to work with you.  Read more about the process and how to make it work for you by checking out this vehicle finance guide.  Good luck and make it happen!

Ideas on Getting the Best Used Car Finance Rates

Ways to Get the Best Used Car Finance Rates

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Getting financed for a used car can sometimes seem like an overwhelming and daunting task, but it doesn’t have to be. Finding the best used car finance rates can only occur when you take the time to research and understand the various advantages and disadvantages of different financing alternatives. There are a number of things to take into consideration when searching for financing solutions:

Credit Score

This is an important factor to take into consideration when searching for used car financing options. Many times, your credit rating will be the determining factor in whether or not you are approved for financing. Getting used car finance approval will likely be made difficult if your credit score is less than satisfactory, which means that you have had late payments, missed payments or underpayments on past credit cards or loans. Essentially, the financing agent will use the credit score to determine how likely you are to make payments on time based on your previous credit history. If approved, this may also determine how high your payments are and how long you are able to be financed. It’s not likely but It is also possible that you may be required to have a co-signer in order to be approved.

Income

Another vital consideration in used car financing options is your income. The financing provider will take into consideration what your monthly income is before determining a proper payment plan. The lower the car payments, the longer the period of financing will be. To get the best used car finance rate, try to stick with a car that you can have paid off within 12 to 18 months. Yes, that is not always possible but it’s worth the effort to see if this is something that you could make work for you. This will help to insure that you do not face additional or higher rates, yet the loan period is sufficient time to dramatically improve your credit rating. If you are required to have a co-signer to obtain used car financing, keep in mind that his or her income will likely be included in determining the finance rates.

Research

As you know, some car dealerships have their own financing agency on the lot, others go through an outside bank to finance the auto loan for their customers. Those that finance on the lot are often easier to obtain financing through because they focus more on income and less on credit scores, a valuable trait to the customer who has a blemished credit history. You might want to learn more about how this process works so it might be beneficial if you take time to review a Guide on Auto Financing. The key to finding the best financing rates is taking the time to search around before making a decision. Purchasing the first car that you qualify for is not always a good idea because it could leave you with higher rates than you would have faced if you had done a bit more researching before making a purchase.

Getting a good auto financing rate is challenging but not hard. Learn as much as you can and understand the process of auto finance. Make the effort and you will come out ahead when you move forward to buy and finance your next new or used auto loan. Good luck and good shopping!

When to Buy Your Leased Car

You probably didn’t think about buying your car when you first leased it. Perhaps you enjoyed the low monthly payment, the opportunity to drive a luxury car, or not having to worry about major repairs 100,000 miles down the road. With only a few months left on your car lease, though, you’re considering buying out your lease. How do you know if it’s time to buy your leased car or time to walk away at the end of the lease? myAutoloan is here to help. There are actually a few scenarios when buying out your lease makes the most financial “cents!”

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When Should You Buyout Your Lease Car?

When your buyout amount is less than or close to its private-party value

First things first: Buying out your lease has to make financial “cents,” or sense if you want to get serious. Start by finding out your residual amount, or the buyout amount. You can find this number on your online account, monthly statement, or by calling the bank that holds your lease.

Compare this amount to the private-party value of your car. You can easily plug in the vehicle details on Kelley Blue Book to get this amount. If your buyout amount is pretty close to (or fingers crossed, less than) the private-party value, it might make financial sense to buyout your car lease.

When you’ve gone over your lease mileage limits

Car leases come with a limit on the number of miles the car can be driven. This limit is typically 12,000 miles per year over a 3-year lease, but it can vary. If you’ve exceeded your lease mileage limits, buying your car might be a better financial route than returning it at the end of the lease. Why? The leasing company is going to charge you for every extra mile on the odometer. Check your lease for the penalty amount. It could be as much as $0.25 per mile. If you buy the car, you won’t be penalized for going over the allowed miles.

When the car has definitely seen better days

Did you drive your leased car like an Indy 500 racer? Like Thelma and Louise on their fatal cross-country adventure? Like any driver in one of the Fast and Furious movies? You get the point. If you put the pedal to the metal, then there’s a good chance your leased car has excess wear and tear. The bigger the damage, the bigger the penalty. If you buy your leased car, you won’t be penalized for dinging, denting, scratching, or staining the interior or exterior of the car.

When you really, really, really like your car

Not everyone makes decisions from a financial standpoint. Some people let their emotions or preferences guide their choices, and that’s okay, too. If you adore your leased car and can’t imagine letting it go, then buying your leased car makes sense. Follow your heart and keep the car!

When you don’t want to hassle with car shopping

You’re essentially starting from ground zero after you turn in your leased car. Time to start researching car models, comparing prices, planning trips to the car lot, and dealing with aggressive salespeople. With your leased car, you know exactly what you’re getting. You know your vehicle’s history including how and where it’s been driven, what it’s been used for, and how often it has been maintained. When you buy a car you’re already familiar with, you can driver easier and sidestep the many headaches that come with car shopping.

Apply for a lease buyout loan

When you love your car but not your lease, go with a lease buyout. The dealer will typically contact you about buying the leased vehicle near the end of your lease term. You can accept the dealer’s offer, decline, or negotiate a better price. Yes, you heard us. You may be able to negotiate a great low price on the vehicle you already know and love.

Review the terms of your lease contract and and when you’re ready, apply with myAutoloan to see up to four lease buyout loans in a matter of minutes!