Auto Refinance

Are you tired of paying a high interest rate on your auto loan? Consider refinancing your car.

People with good credit also get stuck with high interest rates. This occurs typically when a car buyer gets caught up in the moment and doesn't want to take the time to shop around for the best deal on interest rates, terms, and fees. So they usually regret it later, but that's ok. You can always refinance your car (provided you have acceptable credit and equity to the lender).

If you have had bad credit in the past and obtained a loan while the credit didn't look it's finest you may want to apply for a refinance to drop your rate.

Before you start shopping around for a new car loan make sure that your existing loan is a simple interest loan or there could be unexpected fees or interest due when you pay off your current loan. Most, but not all auto loans are simple interest loans.

You should also check to see if you existing loan charges a pre-payment penalty. If so, you'll have to figure out if the refinance is still worth it in the long run.

Another fee to be on the lookout for are state title fees. Some states require fees to change the lender on the title of an automobile. To determine if this will apply to you, simply call up your local DMV. Again, if this applies you'll have to factor this in and see if it still makes sense to refinance.

Refinancing can mean big savings : Over $500 savings on a loan interest rate difference from 6.9 dropped from 8.9. ($10,000 over 5 year term).

Related Article: Auto Loan Calculator >>