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There are only a
few reasons to consider refinance options on your
auto loan.
Lower
Interest Rates:
This is the best
reason to refinance. Often lenders' current rates
are lower than when you first financed your auto. Or
perhaps you had bad credit at the time you purchased
your new auto. Either way, if you lower your auto
loan interest rate you could save thousands over the
length of the loan.
If you do
refinance your current auto loan at a lower interest
rate it makes sense to also reduce the number of
payments left. Often you can reduce the loan term
and your payment as well. If you can handle a higher
payment consider decreasing the term even farther
and you should save a lot of money in interest
charges.
Reduce
Payments:
Be careful if
this is your only motivating factor. If is possible
to reduce your payments by increasing the interest
rate and loan term. If you have to increase the term
to payoff your loan just to decrease your payments,
it could cost you thousands of dollars in interest
charges.
Whatever your
reason for refinancing your auto loan you'll need to
find a direct lender. Many online services,
including SmartCarLoan, are buying services and are
not direct lenders. Buying services operate within a
network of auto dealers and indirect lenders.
Some of the more
prominent online direct refinance lenders include:
-
Capital One
Auto Finance
-
Wells Fargo
Acceptance
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Household
Automotive
-
Road Loans
You may also have
luck finding a lender to refinance your auto loan
with the following loan broker services:
E-Loan
Lending Tree
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