Best Auto Refinance
When making your monthly car payment, have you ever wondered, “Can I lower the interest rate on my car loan?” If you haven’t, you should. An auto refinance could save you money.
It isn’t always easy finding the lowest auto refinance rates, so we’ve put together the ultimate guide to make it a little easier.
In this guide, we break down everything you need to know to save as much as possible when refinancing your auto loan.
Common Questions
How to compare auto loan refinance lenders?
To find the best auto refinance companies, here are four key factors you should consider:
1) Refinance auto loan rates
Look at the interest rate range offered by lenders and get quotes to find out what each lender can offer you. This will determine how much it will cost you over the term of the loan, so this is one of the most important factors. Your credit history and financial profile will determine what you can get.
SuperMoney’s auto loan engine lets you compare interest rates from a variety of lenders almost without effort. Simply answer a few qualifying questions and, without affecting your credit score, we’ll provide several competing offers. After that, you can compare lenders side by side to find the right one for you.
2) Total auto loan cost
In addition to the interest rate, you will want to look at the big picture. Calculate the total cost of the interest over the length of the loan term along with any fees the lender charges. An online loan calculator can help with this step.
3) Eligibility requirements
Check the eligibility requirements to ensure the lender suits your needs. One may be a better fit than another. For example, one company may refinances loans up to $45,000, while another’s maximum limit may be $55,000. As well, some may be more lenient when it comes to refinancing a car with bad credit.
4) Customer reviews
Next, find out if current customers are happy with the service. Even if a lender can save you some money, it may not be worth the headaches you’ll suffer from a bad customer experience. Read reviews to find out how customers rate a lender overall and if there are any specific areas that people repeatedly complain about.
When should you refinance a car loan?
Is this the right time for you to refinance your car loan? Well, that depends.
First, most lenders will want to see that your current loan is at least 90 days old. If it is, the next step is to figure out how much you can gain by refinancing and how much refinancing will cost you.
Your added value can come from lowering your payments, a cheaper overall cost, and better customer service. On the other hand, added costs can include a longer loan term, fees, and poorer customer service.
Why are auto refinance interest rates so important?
The interest rate you get determines how much you will pay to borrow the loan amount.
Lenders will provide you with your annual percentage rate (APR), the percentage of interest you will pay each year of your loan term. Note that there may be additional fees on top of the APR.
By finding the lowest auto refinance interest rate and fees, you can potentially lower your monthly payment amount and overall loan cost.
How long should I wait to refinance my car?
Wait at least 60–90 days after getting your original loan to refinance. It typically takes this long for the title on your vehicle to transfer properly, a process that will need to be completed before any lender will consider your application. Refinancing this early typically only works out for those with great credit.