Great Car Loan Refinancing
If you thought you were locked into paying that sky-high car loan APR you got saddled with at the dealership, think again. Find out how car loan refinancing can help.
Most people have heard of home mortgage refinancing, and the average American usually refinances his/her home every couple years. However, not many people are aware that the same money-saving concept can be applied to car loans! In fact, 53% of people who finance their car through the dealership don't consider other lending options, and 33% say their car payment is too high. This is where car loan refinancing can help.
Refinancing Saves You Money
Car loan refinancing, much like home refinancing, involves taking out a loan from another lender to pay off your current auto loan. The reasons to refinance your car loan abound. A refinancing car loan can help you lower your interest rate, save on monthly payments, and reduce the total cost of the vehicle. Car loan refinancing can also extricate you from an "upside-down" car loan situation. That is, if you owe more on your car than it is worth, refinancing might be able to get you out of this predicament.
Because car dealerships specialize in selling cars and not offering the most competitive lending rates, chances are that your car loan situation can be improved drastically. Especially for people with less-than-perfect credit, car loan refinancing translates into serious savings. Don't let the dealership con you into thinking you are tethered to a 20% or higher APR for the life of your loan. Car loan refinancing is incredibly easy and readily available for all types of borrowers. In what follows, we'll cover the basics of car loan refinancing, some of the most commonly asked questions about car loan refinancing, and even give you a chance to apply for an auto refinancing loan today.