Auto Refinance News
Auto Refinancing rates are at an historical low, hovering around 3.5%.

The Federal Reserve decided to keep rates steady on 09/04/11

 

 

 

 

 

auto refinance

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Here's how to refinance your auto loanauto refinance loans
Auto refinance loans are a great way to save money. Often reducing monthly payments by $100 or more. Even those who have less than perfect credit scores can get approved for auto refinancing loans. Check out the companies who can lower your rate and decrease your monthly payment.

Auto refinance companies we recommend:

Rate Genius Auto Refinance • Wide lender network
• Low refinance rates
• Skip up up to 90 days payments
• No fees to apply

up2drive refinance auto loans• Simple refinance process
• Fast decision after applying
• No obligation
• No fees to apply

For those consumers with prime credit (FICO over 700), we recommend

RoadLoans - Auto Finance and Refinance Made Easy! • Better for all credit types
• Decision within 15 minutes
• No obligation
• FREE application

MAL Button • Good for all credit types
• Really low rates
• Up to 4 loan offers in minutes
• FREE application

If you want to learn more, then read ahead:
Auto loan refinance and process
Should you Refinance
Benefits of Auto Refinancing

What is Auto Refinance?
Refinancing your car loan is very similar to refinancing your mortgage.  Another lender evaluates your credit history, your current loan terms, and your vehicle, and determines if they can offer a better rate than your current lender.  They will payoff your current loan and assume the rest of the balance. 

Auto Refinance is not the most common form of loan refinance, mainly because many banks do not offer this product.  However, it is a fast and easy way to put money back into your pocket. Plus now is a good time for an auto refinance. Unlike mortgage refinance, the process does not take very long; some customers are able to refinance their auto loan in under one day, spending less than 20 minutes on the entire process!

What is the process for auto refinance?
Applying is typically quite easy.  Usually it can be done online and takes about 10-15 minutes. 

Most lenders have the ability to supply a credit decision instantly, or can provide a decision within 15 minutes after application submission.  At that point, you will be presented with your loan terms, to include the available interest rate.  If you decide to move forward, then call the bank to get things started.  Likely, if you are approved, the bank will call you to get you started immediately into the process.

Should you auto refinance your loan?
Auto refinance gives you an opportunity to potentially lower your current interest rate and/or your monthly payments—therefore, it is a great idea to see if you would benefit from a refinance. 

While anyone can qualify for a refinance, we especially recommend that you investigate auto refinancing if you: 

  • Pay more than 8% interest on your auto loan
  • Have a recent strong payment history
  • Took a loan at an auto dealership, which likely was subject to a “markup”
  • Want to extend the term of your loan to lower your monthly payment

Auto refinance companies can't compete with a 4% loan, and most won’t be able to help you with older cars with hundreds and thousands of miles, but you’d be surprised how many can be helped. can’t compete with a 0% loan, and most won’t be able to help you with older cars with hundreds and thousands of miles, but you’d be surprised how many can be helped.

Auto Refinance can help you:
  • Lower the interest rate on your current auto loan
  • Decrease your monthly car loan payment
  • Reduce the amount of interest you pay over the life of the loan
  • Change parties listed on the loan (add someone, drop ex-spouse, etc...)

I have bad credit. Is auto loan refinance even an option for me?
Auto refinance for bad credit consumers is doable. Those with previously poor credit may be the best candidates. Making steady payments on your loan is key. Assuming that there has been some improvement in your credit performance since you obtained your original car loan, we think that you can refinance. As we’ve mentioned, lenders will look at many different factors when determining whether or not to extend you credit, so there are no universal rules about who will and who will not be approved for a refinance. However, we think you’ll have a good chance of success with the following conditions:

  • Have you made your car payments on time over the last six months to one year? (showing that you can make a car payment on a timely basis gives lenders confidence that you’ll repay their loan.)
  • Have you taken steps to improve your credit, no matter how bad it was, since you obtained your auto loan? (your entire credit history will be scrutinized, but more weight will be given to your most recent credit performance. As your FICO improves, your risk goes down, and therefore your interest rate will go down.)
  • Are federal interest rates decreasing? (even if your credit is similar to your credit at the time of our original car loan, a declining interest rate will likely provide opportunities for you to refinance at a lower rate.)

Ready to learn more?  Continue to our next page:  Auto Refinance Requirements

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