Refinancing Car Loan Can Be Tedious, But Worthwhile

2007-03-08 10:33:40

( Financial )



If you bought your car a few years ago at the best new car loan rate available at the time, chances are your interest rate is much higher than the best car loan rates prevailing now.

Refinancing car loan is definitely one option you can consider. You probably will not get bombarded with offers to refinance car loans. Many banks are not keen on refinancing car loans, but there a number of online lenders who are well-entrenched in the business; there are also online brokers who can help you find favorable refinancing car loan packages.

These lenders offer deals similar to their best car loan rates for used-car loans. If you have a high credit score, then you can expect to refinance car on favorable terms. You will get even better deals if you have accumulated enough equity in your car (by having made a large down payment at the time you bought your car or by being well into your loan).

The vehicle refinance provider will consider only cars from a particular model year or newer, and impose a maximum mileage reading on your odometer. Note, too, that refinancing car loan will not be possible if your car is worth less than you owe.

For this reason, the vehicle refinance lender will require you to provide information about your car such as vehicle year, make and model of car, mileage, your loan amount balance, your current interest rate and current monthly payment, and the bank with the lien on your car. You also need to give an idea of your credit rating.

The bottom line you want in any refinancing car loan deal is for you to save money. You should try to work out the best car loan rates with the vehicle refinance lender. It may take time for you to find one, but you’ll get substantial savings.


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