If your car loan is a few years old, chances are your monthly payments are higher than they need to be. Why is that? Because interest rates are at their lowest in more than 50 years.
Most people hear about interest rates and only consider refinancing their home mortgage. And like many people, you may have already taken advantage of these historically low rates. So if you have already refinanced your home, it may be time to consider refinancing your second biggest asset.
Or perhaps you fall into the category of millions of Americans who don’t qualify for a new home loan. A common reason for this is when home values drop and people no longer have enough equity to be approved for a new mortgage. But it’s not the same picture in the automotive world. There’s still an opportunity to save money with today’s low interest rates. This is because you won’t need to get your home or your car appraised to qualify for a new auto loan.
The steps to refinance an auto loan are extremely easy. According to FindtheBestCarPrice.com, the application process only takes about ten minutes. Just contact your lender to find the payoff amount of your loan. Then submit a new application to your bank, credit union, or one of the many online lending companies. If approved, they’ll overnight you a check to pay-off your existing loan.
Like many people, you may not have realized that refinancing your car loan was a possibility. But if you can reduce your interest rate by more than 1 or 2 percent (refinance rates for good credit are hovering around 4.5 percent), you could potentially save hundreds of dollars over the life of your loan.