It can be a bit tricky to refinance an auto loan when you work for yourself. Many Americans today are enjoying the benefits and freedom that self-employment can bring. The Pew Research Center reports about 16 million Americans work for themselves -- that’s 10% of all jobs held in…
Auto refinancing allows you to save money by lowering your interest rate on your car, truck, or SUV.
What is Auto Refinance?
Most people don’t know that you can refinance your car loan. Refinancing an auto loan pays off an existing loan with a new loan. Replacing an old loan with a new one can save you hundreds or thousands of dollars in interest fees.
There are several reasons why a borrower may have received a high interest rate on their original auto loan, such as poor credit or inflated dealership rates. Finding a new loan with a lower interest rate will allow you to pay off the high-interest loan immediately, preventing high amounts of interest from building up. The borrower is then responsible for paying back the new, lower-rate loan, saving money!
Why Should I Refinance My Auto Loan?
- Save money over the life of the loan by lowering your interest rate. If you financed your car through a dealership or your credit score has improved since you bought your car, this could apply to you.
- Save money in the short term by lowering your monthly car payment. This could be done by either lowering your interest rate or extending your loan term, or both.
- Skip a car payment. In addition to lower interest rates, sometimes skipping a car payment is an effective way to temporarily increase your cash flow, giving you a head start on saving, the ability to buy something you really want, or the funds for a fun adventure!
- Pay off your car faster by shortening your loan term and lowering your interest rate.
- Refinance with a lender that is more aligned with your needs and values. People are frustrated with big banks, so refinancing your car with a credit union can lead to more savings, better service, and overall satisfaction.
Qualifying for Auto Refinancing
Because most of our lender network has similar lending parameters, if you have an existing auto loan, are a U.S. citizen, and are over 18, you meet the basic requirements to refinance with us.
It’s no secret that credit is an important factor in loan offers, but great credit is neither the only factor nor as important as you might think. Credit, Loan-to-Value Ratio (LTV), and Debt-to-Income Ratio (DTI) are all considered for refinance loans.
Further, at rateGenius, we’re able to refinance borrowers with a wide range of credit scores; our network of over 150 lenders accepts and approves auto loan refinances with diverse personal situations and financial backgrounds. We help find you the best rates at no cost to you. Click “Apply Now” to see if you qualify.
If you have more questions about whether or not you qualify for refinancing, check this out.