Some people are able to save thousands of dollars by refinancing their auto loan. However, not a lot of people know that auto loan refinancing exists or they mistakenly assume that it will take as long and cost as much as a mortgage loan refinance.
Auto loan refinancing is much less arduous and much quicker than a mortgage refinance. An application may only take you a few minutes to fill out. Fees are generally much lower too. Auto loan refinancing may be most appropriate in the following circumstances:
- You didn’t shop around on your original loan or you financed through a dealership
- You have been making your payments on time for at least a year or your credit has improved
- Market interest rates have dropped since you took out your original loan
- Your financial situation has changed and for whatever reason, you want to increase or decrease your monthly payments by changing the length of the loan
Don’t throw away money to a lender or a bank if you could lower your expenses by refinancing to a lower interest loan. In order to obtain the best rate when refinancing, compare rates from a number of different lenders. Here are some sites where you can quickly obtain multiple quotes:
I would also recommend seeing if you can obtain a better rate using a peer to peer loan.
Carefully consider the interest rate, fees, and terms of any loan you are considering to make sure it makes sense to refinance.