Refinance Auto Loan Basics. What The Car Owner Must Know.
Can you pursue auto refinancing?
Your automobile is almost certainly your second largest investment, surpassed only by your home. Refinancing of a home loan to relieve a difficult financial situation is a widely known approach. Many people may not realize that credit-yogi.com can show them how an auto loan can be refinanced, just as a home loan. You might have just realized that an auto refinance is your goal, you can quickly find that such refinancing can be easier to obtain than home loan financing. However, there are certain simple but strict rules that you might want to be aware of.
The entire process is surprisingly enabled by the company that you bought the car from. An auto loan from a dealer often has a high annual percentage rate (APR) as the dealer wants to be in the car selling business, not the money lending business. Credit-yogi.com works with many such companies that offer auto refinancing routinely. They will pay off your dealer loan for you, take legal possession of the auto, and can make you a new auto loan at a lower APR.
Can you pursue auto refinancing?
- Auto refinancing will not be an unsecured loan. The car itself will be the asset that assures the loan. Therefore, if the car is currently worth less than you still owe on it, you simply cannot pursue auto refinancing, however there are other options credit-yogi can assist you with. You can find the value of your car in a respected auto journal. The Kelly Blue Book is the almost universally accepted source for the worth of any car. Then you can easily figure out how much you still owe on the car. Your first lender will most likely not refinance your loan. You can turn to a firm that specializes in auto refinancing even with late payments.
- There can be fees on both ends of the transaction. Your first lender may have an early buyout penalty (unlikely, but possible). Your refinancing firm may have application fees or other charges. You can find out what your actual gain in the refinancing process will be. Most refinancing firms offer an on-line car payment calculator that should prove extremely helpful to you. It can allow you to see exactly how much you would be saving by refinancing.
- You might want to check your credit score. There is a break point between getting a good APR and getting a not so good APR . However, do not despair if you are below this. Even a not so good APR from an auto refinancing firm is likely to be better than the APR you got from the dealer.
- If your credit report shows missed car payments on your original auto loan, you’ve could have a problem and may need to find a firm that can deal specifically with this issue, luckily credit-yogi.com specializes in such cases. Other financial difficulties such as late credit card payments or collection actions are usually of less concern to auto refinancing lenders than missing a car payment. Even a past bankruptcy can be forgiven if you can show a recent history of reliable credit rebuilding. Good credit performance over the last 6 to 12 months can allow the auto loan refinancing firm to overlook or minimize many past sins.
- Having a steady job is a big plus. Lacking this, you may want to consider getting a co-signer for your car refinance loan.
You could be pleasantly surprised at how easy credit-yogi can help you get a good deal on auto refinance loans so long as you meet some basic criteria. The process certainly involves much less paperwork and hassle than getting a home loan. The easy availability of the auto loan calculator from the refinancing lender makes your potential savings easy to figure out.