Tips for Refinancing your Auto Loan

One of the main reasons an individual decides to refinance their auto loan is to save money. If your current loan was approved at a high interest rate because of your poor credit score auto refinancing may be a good choice for you. If you have made your payments on time chances are your credit score and increase, and you could be eligible for a better APR. This will not only lower your monthly payment, but could help you pay the loan off faster if you continue to pay the old amount.

Refinancing Your Auto Loan

Below we have compiled a short list of things to look for and keep in mind when applying for a refi.

Get a Lower Interest Rate - Getting an interest rate at even one percentage point lower than your current rate can save you a lot of money. Can you imagine how much you could save by lowering it a couple percentage points? Now is the time to get into a new refinanced loan as the rates are at a near all-time low, and you could save yourself a substantial amount of money.

Value - Because a lot of lenders will not refinance their own auto loans you may have to refinance with a new lender, but with SmallerCarPayments. com its no problem. We can help you get matched with a local refinance lender in your area with the best rates.

Keep in mind though, that most lenders require you owe at least $7,500 on the car - and that it's worth more than that - because the car is collateral to the loan. You can find out the value of your car by using resources like KBB.com.

Prepayment Penalties - Before going to another lender to do your auto loan refi, be sure to talk to your current lender. If you have a good payment history they may be willing to work with you which could save you both time and money. If that is not possible be sure to verify that your current loan does not have a penalty for paying the loan off early.

If you believe that you can get a more affordable auto loan by refinancing submit our free and easy auto loan application today. You could be on your way to savings in no time!