Auto Refinancing: Saving Yourself Money and Time

You should always keep an open mind to the idea of refinancing your auto—even if you already have a low rate. It is difficult enough to convince people that getting the car loan through the dealership is often a bad idea; convincing them of the benefits of refinancing their auto loan can be even more difficult. People are often complacent and believe it is easier to stay with what is working. This philosophy can cost you a lot of money.

Recently people have been saving themselves hundreds if not thousands of dollars per month by taking advantage of low interest rates and refinancing their mortgage on their home. Well, auto refinance works the same way and you can save hundreds of dollars per month by doing this and pay your loan off much faster.

Here is an easy example that shows just how much money you are throwing away by staying with a high interest-rate loan:

Let’s say you have a 48-month auto loan for 20,000 and you have bad credit so you were told that the best APR you could get was 20%(the dealer also said they were doing you a favor).

Interest Rate Monthly Payment Total Interest Cost

20% $608.60 $9213.14

8% $488.25 $3436.40

In this example you would save $120 a month and around $5,900 in interest over 60 months. If you got the 8% rate you could put an extra $50 a month towards the loan and pay it off even faster.

You might argue that you cannot get a rate of 8% and that may be true, but if you can even refinance for 15%(which is very realistic) you would still save $50 a month and $2,500 over the life of the loan. The quicker you refinance the more money you will save so do not hesitate to get the ball rolling.

No matter what APR you got on your loan you should still consider refinancing. Here is another example:

Interest Rate Monthly Payment Total Interest Cost

8% $488.25 $3436.40

6% $469.70 $2545.62

Even with a 2% drop you save $20 a month and almost $1,000 over the life of the loan. That is your money and if you just make the effort it will remain in your pocket and not in a loan company’s.

Submit our quick, on-line car loan application and and check our rates instantly. If you rather go through a bank you can do that, however, the process will take much longer.

Carefully fill out the necessary forms and by being precise in this process your loan application will be processed much quicker than if you make typos. Get all the necessary information and if you have questions just ask their customer service reps because they can make this much easier if you are confused. All of this is free to you and the entire process can be completed in days; not the weeks it can take to do this through bricks and mortar banking institution.

If you are willing to take a little bit of time to complete this process you can save yourself a lot of money. Do some research and some quick math and discover how much you are overpaying. Once you realize how much money you are losing you can decide if staying with the loan you have makes financial sense.

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