Don’t trade-in or sell your car, change to a better lender and save money.
Everyone knows you can refinance your home loans but you can also save a lot of money by refinancing your car loan. If you qualify for a new loan you may save hundreds of dollars a year and lower your interest rate which means you will pay less for your car. And the process is fast, secure, free, and totally online to start paying less for your car. Many factors go into getting approved for a new car loan, you should ask yourself the following questions before applying. If you don’t think you should apply just yet you can follow the steps provided to put yourself in a better financial position so you can take advantage of savings as quickly as possible. Many lenders work with special circumstances and since it’s free to apply you might just want to get started.
Answer the following questions and apply to start saving:
Did I purchase my car a year or more ago?
Most lenders do require that you have had your loan for at least 12 months before they will attempt to refinance.
Will I keep my car for the next 3 years?
Refinancing might reduce your monthly payments, lower the interest rate, or both. If you car going to keep your vehicle for the next few years you will enjoy the benefits of refinancing the loan.
Would saving around $100 / month help me?
A better question might be who wouldn’t want an extra $100? But this isn’t necessarily the best option for you. In some cases to get a lower payment you might decide to extend the loan terms by several month to get the lowest car payment possible. This means that you might pay less every month but more over the life of the loan. Consider this if cash flow is more important today that paying more overall over the years.
Does my car qualify for refinancing?
Does my car have 100k miles or less and is it 10 years old or newer? Most companies will require this at the minimum to qualify but some companies work a little outside these numbers. We have a comparison of the best car refinance companies available for you to review.
Is my credit good enough to qualify?
If you have made your payments on time then you will most likely qualify. If for some reason you don’t you can find out what you need to do to get a new loan.
Is my vehicle loan ok to refinance?
The balance of your loan will need to be more than $7500 in most cases and less than $100k.
Should my current loan be changed so I save money?
Review your current loan documents. Find the current Interest Rate, Balance, Pay-Off Amount, and your monthly payment. Compare them with your new loan offer to make sure you are getting the most benefit from refinancing your car loan.
Once you have reviewed your answers and your current loan documentation you want to put all the paperwork together to make the process easy and fast. You’ll need, at least, Proof of Income (Pay-stubs, W2s, or tax returns), Proof of Insurance, and Proof of Identity (Drivers License, Passport, etc). Then get the car information including the VIN (Vehicle Identification Number) which can be found on your car or insurance card and write down the mileage from the cars odometer.
It will only take a few minutes to apply and you can start saving very quickly after you take this 1st step.