If you got caught in a high finance charges interest rate when you bought your car, an auto refinance may help you take a better finance charges term and save you hundreds of cash a month. Just like a refinance on your home mortgage, a refinance a car loan pays off the original loan and gives you a new one at some kind of benefit. The benefits of refinancing your car might include a better finance charges rate, longer or shorter finance term, or extra coverage on your insurance or mechanical coverage. A refinance can help you out in the majority of ways.
Thousands of dollars can be saved every year if you refinance your high interest rate for a lower one. If you have less than perfect credit it is especially important to refinance a car. Dealers take advantage of those with poor credit by hitting them with extremely high interest rates. Right now, even those with poor credit can get a fairly good interest rate. It will not be three or four percent like prime customers will get, but less than ten percent is likely. Make sure you know what your credit score is before negotiating auto loan refinancing. If you are ignorant, the lender will take advantage of that and not give you the best rate.
Auto refinance has some restrictions. Most finance companies will not examine you for refinance unless your car is less than six or seven years old. Refinancing on cars is based on what you still own and not on the value of the car. You will not qualify unless you have at least $7500 still due on your current auto financing. Traditional refinances also are only offered to you if you will be changing financial institutions. This will include any affiliates of your bank as well.
Try to locate a finance company that will provide low or no fees in the process and you will save even more. The whole point is to save cash monthly. Be careful that this remains your overall goal, or you may take caught up in other programs and end up spending the same period or more than you did before. You may conclude more useful information about car refinance and auto loans on the internet at OpenRoad Lending.
About the Author: Chris Goodman has been in the auto finance business for more than 20 years and has assisted thousands of consumers with their car loan needs. He is an expert on getting a auto refinance loan and financing. Find more information at http://www.OpenRoadLending.com and see how easy it is to get a car loan.