Refinance my Car Loan
I purchased a car a few months ago. The dealership told me that I got the best interest rate possible, but now I am not so sure. I hear that interest rates have gone down. Should I refinance my car?
Auto refinancing is similar to home refinancing. Basically, you are taking out a new auto loan at a lower interest rate and using it to pay off your existing loan. With a new lower interest rate or longer loan term, your monthly payment will be less. That will save you money every month.
If I refinance, how will that affect my credit rating?
Refinancing your car will lower your monthly payment and give you extra money each month. That extra money can be used to pay off debts. The lower monthly payment should also help you consistently make your car payments on time and having a good payment record will go a long way toward establishing, maintaining or rebuilding your credit.
Should I ask my current lender to refinance my car?
Most lenders will not want to refinance their own loans, so it is best to research other lenders that specialize in refinance. You can visit RoadLoans.com to find out more about auto refinancing.
How do I know when is the best time to refinance?
To make the biggest difference in your monthly payment you should not refinance your car until you can lower your interest rate by at least 1%. You can use a Car Loan Calculator to see just how much difference a drop in your interest rate can make. In general, you should refinance as soon as you can. Car loans are structured so that more interest is paid at the beginning of the loan, so the earlier you refinance the more money you can save. Also, it is important to refinance while the value of your car is still higher than the amount of the loan or you might have to pay more cash out of your pocket before you can get a new loan.
What if I have bad credit?
Most borrowers with bad credit can still refinance to get a lower interest rate, but many won’t even try because the believe that they are stuck with high rates. Yes you should still try to refinance, even if your credit is less than perfect. Borrowers with bad credit can benefit even more than those with good credit from being able to lower their interest rate and get a lower monthly payment.
Okay, I have decided to refinance my car, where do I go from here?
There are many online resources that will help you investigate auto refinancing. You can go to RoadLoans.com to experience auto refinancing that is Free, Fast and Simple. FREE, because there are no application fees or closing costs. FAST, because our online application takes just minutes to complete and SIMPLE because once you are approved you just download your documents, print them, sign them and send them back.
RoadLoans can pay off your existing loan and replace it with one that better fits your life. Lower your monthly payments and start saving money now. Start clicking and stop wondering “If I should refinance my car?”