Refinancing Your Car/Auto Loan - Is it Worth It?
Here we are going to take a look at car
loan refinancing. It has become increasingly popular and can save you
money, depending on your circumstances.
No doubt you have heard of refinancing your mortgage. It has become all the rage, but now you can also refinance your car loan.
You can stand to save several hundred dollars - even up to $1000 over the term of the loan.
My take on it is go for it. Competition is healthy and it will keep the finance companies on their toes providing better service for all.
Just make sure you go with a reputable
company. There are car refinance companies on line these days such as e-loan or
Capital 1, which are proving themselves worth adversaries to the
standard brick-and-mortar loan companies.
It's not hard to see why? Simply apply from the convenience of your home rather than trudge all the way into some downtown office and line-up in a cue.
It's even better than on the phone, because you can send your application in and forget it. Before you blink you have an approval or not. If you don't, then you can simply find another one.
Use this tool from eloan to find out how much can you save by refinancing your car
You can start off with a higher interest rate if you have bad credit and then refinance to a better rate later on. If you are already on one of those 15% sub-prime loans then refinancing will save you a packet. The qualifications to get in are relaxing, so it can't hurt to apply. Your circumstances may have changed, meaning you will be entitled to a better rate.
Generally, the cost of car refinancing is very low. Maybe only $10-$40, just for the small bit of admin required.
As a precaution, you should check your
current provider does not have an early payout penalty clause.
Be sure to read all the terms and conditions and check with your accountant or financial advisor before making financial decisions.
Get an online quote for car refinancing
If you have credit problems see my bad credit car loans
E-loan has a great site with car loan calculators - look under tools here.
Copyright © 2005 Graeme Sprigge - Copying this article in any form is not permitted.