Refinance if unhappy – is the unwritten rule. But is refinancing the right option for you? You shouldn’t do it just because everyone else is doing it. Understand what situations demand refinancing and then take a decision.
“Glorious, stirring sight! The poetry of motion! The real way to travel! The only way to travel”
The words of Kenneth Grahame have perfectly exemplified the beauty of cars. His words symbolize our passion towards it. We absolutely love the beauty on wheels, but are we even comfortable with our car loans?
If you love your car but abhor your car loan, it’s time to end this conflicted ambivalent relationship. It’s time to refinance your car.
Refinancing your car loan means paying off the current loan with the help of a new loan. The car’s title is transferred to the new lender. You will now have to make your monthly payments to him.
Car refinance looks easy, but are you not sure about it?
If you are troubled by any of the problems listed below, refinancing is the right option.
WHEN TO REFINANCE YOUR CAR?
1. High Interest Rate / High Monthly Payment
Higher interest rates can be due to several factors like bankruptcy, foreclosure, bad credit report, dealership financing, etc. You can go for refinancing even if there is no substantial improvement in your credit score. A higher monthly payment, inflexible loan terms and conditions can also be a reason for car refinance.
There is no point in stretching a loan that makes you uncomfortable. So, search for lenders and refinance your auto loan.
2. An Upside Down Loan
If you owe more than the car’s value, you are having an upside-down loan. This means that even if you sell your car, you won’t be able to pay off the loan. You can think of car refinancing to help you. You can get a new loan for lower interest rate or longer term and get out of the mess.
3. Dealer - Financed Car
It must have been pretty convenient to get your car and loan from the same place. But did your dealer give you the best deal? Probably not, Dealers are infamous for charging higher interest rates. Even the Federal Trade Commission is contemplating the same issue. It has noted that the dealer financing can involve unfair practices.
So, if your car is dealer-financed, you should seriously consider refinancing.
4. A Leased Car
If you have a leased car, you will have to make a lump-sum payment at the end of the agreement. Saving such a large amount is very difficult. So, why not refinance your car and spend on regular monthly payments?
5. Improved Financial Condition
Your financial condition has improved substantially from the time you availed the car loan. You may have accepted higher interest rates at that time, but it doesn’t mean you should continue paying the same rate. Refinance your loan to avail better interest rates.
6. Improved Credit Scores
If you have been religiously paying off your monthly payments for the past six months, there are chances of some improvement in your credit score. Check your credit score and if it has improved, refinance your loan.
7. All Time Low Interest Rates - Very Important Factor
The Fed Funds Rate is close to zero (exactly 0.25%). It means there is more liquidity in the economy and consequently lower interest rates. This is the best time to refinance your car. Take advantage of the situation and get competitive loan rates.
Car refinancing is easy and inexpensive as the refinancing fees are low. The entire process can be accelerated with the help of internet. Go online and search for reliable lenders. Refinance your car and get out of the mess real soon.
Best of luck!
Deciding on The Right Used Auto Loan Program
Most people cannot imagine about moving on without a car. But before you buy one, it is advisable to do some investigation. Buying a car starts from deciding the car you want to buy and continues to how you will finance your purchase and ends with having signed the deal. It may not be that your budget allows you to purchase a brand new car. Rather you may have to satisfy yourself with a used car and get it financed through a used auto loan program.
All That You Wanted To Know About Student Auto Loans
There are certain myths about student auto loans. As a student, getting a loan might be difficult at times. You might get to hear that if you do not have enough credit, you will not be approved for a loan. But, as a matter of fact, you should not pay heed to these. You always have the right to know the correct information about these.
Get Prepared to Apply for Low Rate Auto Loans
Whenever you are thinking of opting for the low rate auto loan, keep some of the factors in mind. These will help you get through the whole process with a relaxed mind. Here are some aspects you can take care of from beforehand.
