Tag Archives: auto refinance

Auto Loan Refinance: 5 Questions to Ask

Are you ever told by your friends and relatives that you should get a better auto loan offer? Auto loan Refinance doesn’t prove to be fruitful in every case. But for some individuals, it’s a jackpot.

The ticket to success in refinancing is to know the right timing and plan. People have solid reasons to seek auto loan refinancing. If your answer to any of these questions is yes, consider refinancing a car because there are chances that you could really hit the jackpot.

1. Is paying a lowered monthly payment your priority?

As reported by Experian, the average monthly payment for a used car in 2021 is around $430. That’s a hefty sum of money, especially when you barely have just enough money.

The primary benefit that refinancing offers is that you can pay off the loan in a longer time than the original plan. Each of your monthly payments becomes less through this option.

The drawback is that you’ll be paying monthly payments for a longer amount of time. It results in paying extra interest over the life of your auto loan.

2. Do you wish to lessen the life of your auto loan?

Doesn’t it sound great to save up money in your bank than send it to a lender? Absolutely, yes! The other highlighted reason why people prefer refinancing a loan is to reduce the interest rate.

It occurs by two means. You can refinance the auto loan for a shorter term, or you can find a refinanced loan with a lower interest rate. These two options will definitely save you a ton of money!

3. Did you purchase a bad deal from the car dealer?

Car shopping is not as easy as it seems. You are continuously bare to scams and high-pressure sales tactics, which leads you to sign a not-so-ideal loan plan. Car dealers tend to undervalue the car, which leads to a higher loan amount on it. Besides, dealers also mark up the interest rate and profit off the extra payment that you pay.

However, there is a way to escape from this plotting. You can apply for a better car refinance to get a better loan. If you choose to refinance through CarLoanRefinancing, we never plan on charging extra. So it is a hundred percent safe and secure option to get a loan refinancing!

4. Did your credit and financial conditions change?

If you are a quick learner, then like most credit holders, your credit score would have taken the road towards progress since you’ve learned how to manage credit score and history better. Your financial condition might have also improved if you’ve made growth in your career and earnings.

These are the perfect times when you should consider refinancing your auto loan. Even if you are still working to make your credit score better, you should look for loan refinance offers through CarLoanRefinancing. It is because we pay attention to other factors as well rather than credit score only. Keep an eye on the recent options, and apply right away when you find a suitable loan refinance plan.

5. Do you wish to take out a co-borrower from your loan?

Cars are an expensive asset, and most of the time, no one is financially well-off to own a car individually. For this reason, people tend to share a car (and loan as well) with another person or co-borrower. There’s another possibility that your credit score was not good enough to take out a loan, and you needed a cosigner on the auto loan.

If your financial circumstances have improved and you wish to remove the cosigner or co-borrower from the loan, you should refinance it. Keep in mind that if you plan to refinance an auto loan through CarLoanRefinancing, you’ll need to have permission from the cosigner/co-borrower.

How Does Refinancing a Car Loan Through CarLoanRefinancing Work?

Paying off auto loans seems like a heavy burden on the shoulder and the budget as well. The only hope that keeps us going is that we are not stuck with it for a lifetime. We refinance our auto loans and get to pay lower payments or interest rates or even both. Refinancing a car loan helps you save up a hefty sum of money in the long journey. To give a short example, loan borrowers save up to $912 per year by refinancing.

If you have never considered refinancing, you should. It is an uncomplicated process if done through CarLoanRefinancing. We hold years of experience in this field.

What Are the Steps to Refinance My Car Loan Through CarLoanRefinancing?

It doesn’t require any rocket knowledge in refinancing a car loan. Through CarLoanRefinancing, we have simplified refinancing even more by using the latest technology. We have award-winning customer support that helps you walk through the entire process step-by-step.

Step 1: Go through your rate.

Visit our online form and check out what rate we are offering. It takes less than five minutes and only basic information, such as:

Name
Birthdate
Home address
Education status
Income proof

We perform a soft inquiry on your credit, meaning this step doesn’t affect your credit score. We get most of the car information by car and the car loan information you’ve provided. If we can’t, we’ll require other details like car model, trim, and mileage.

Step 2: Review loan offers

If you pass the previous step, we’ll give you loan offers to review. This step helps you choose the right monthly payment amount, the length of the plan, and the interest rate.

The loan amount we’ll show will be higher than your original loan balance. It’s normal because your lender will refund the leftover money once the previous balance is $0.

Step 3: Submit your application form.

After selecting any plan you find suitable, you’ll need to provide additional information like your social security number and your insurance details. After this, we’ll instantly verify your application and redirect you to step number five.

Step 4: Submit any additional documents.

Sometimes, we also require additional documents like a driver’s license or a copy of your pay stub.

If we need any extra information, we’ll reach out to you right away. Your cooperation is a must through this time so keep checking your email to avoid any inconveniences in the application verification.

Step 5: Check and sign the final documents.

Once we’ve collected and verified the required documents, we’ll call you to check the loan terms & conditions and sign the permission form for a hard credit check. Most of the time, a hard credit check barely affects your credit score. According to FICO, the consequences of the hard inquiry would be marked off completely within two years.

After receiving your signature on the promissory note, we’ll go through the vehicle and insurance details once again. We’ll also check whether you’ve signed the documents to start working with CarLoanRefinancing or not.

Usually, we do these steps electronically, but due to varying laws and policies in different states, you also need to sign a physical copy. For this purpose, we’ll mail you the forms along with a prepaid envelope. Some states also demand a notarized form. For this purpose, we’ll provide detailed instructions that you have to follow.

Step 6: CarLoanRefinancing pays your old loan

After going through the official paperwork, we’ll deliver a check to your previous lender to clear your old auto loan. If we’ve overpaid the lender, he’ll have to refund it back to you.

Make sure to pay off your loan entirely until you see $0.

After we’ve cleared the old balance, the title transfer process will start. It may take up to 60 days to complete it. We may transfer the loan to your state’s Department of Motor Vehicles or under your name.

Step 7: Shift to paying your CarLoanRefinancing powered loan

After CarLoanRefinancing clears your previous loan balance, you’ll start to pay for your new loan monthly. You should pay the first payment within 30 days of initiating the new loan. We’ll plan the process in an organized way so that you don’t have to make payments for two loans in a month.

We’ll make things easy for you by presenting several easy payment methods.

Switching to automatic payment will lift off the burden of making manual payments monthly. We also offer a bi-monthly payment option. You can make such payments via autopay or manually and check your paychecks regularly.

All in all, CarLoanRefinancing has come up with an easy and convenient method for refinancing a car loan.

Your Ultimate Guide for Auto Loan Refinance

Americans incur a hefty sum of $1.2 trillion on auto loans alone. It takes about ten percent of the overall consumer debt. With increasing unemployment due to COVID-19, Americans are finding effective ways to save money where possible, including auto loan refinance to reduce their monthly payment costs.

Auto refinancing may sound like THE best idea, but most people are unaware of what it entails and its long-term effects.

All Must-Knows About Auto Refinancing

If you are looking for capable ways to save money from your monthly payments, consider refinancing a high-interest loan into a lower-rate loan. It will help you save money over time.

If you are paying pricey payments each month, refinancing the auto loan to a long-term plan would result in lower monthly payments. However, conditional on the number of months you add to your plan, you’ll automatically have to pay more money over the lifetime of the auto loan. Therefore, do calculations to estimate how much additional money you’ll be paying over the added months.

Beware! Auto loans usually come with an extra fee, and it also ruins your credit score badly. To conclude this, auto loans are not guaranteed “money savers.”

At CarLoanRefinancing, we will provide in-depth answers to your question. So you make the most well-informed decision possible. Here are some FAQs about auto refinancing and related outcomes. Go through them carefully and decide whether you want auto refinancing or not.

What Is Auto Loan Refinancing?

Auto loan refinancing is the process of replacing your already existing loan with a new loan at a different interest rate. Such loans are taken for cars and paid through monthly payments, which may take over several years.

When Should You Refinance Your Car?

One of the essential factors when considering refinancing is the available interest rate. Interest rates tend to fluctuate regularly, so the interest rates may have dropped since you’ve taken out your original auto loan. Even a 2 or 3 percent drop would save you a large sum of money over the entire loan period.

If your financial situation has improved over time, your lender should look at your debt-to-income ratio. If it’s in good condition, your lender will most likely reduce the interest rate. It will gradually save you a hefty sum of money.

What Items/Documents May Be Needed for a Car Refinance?

To refinance your loan, the lender needs the following information/documents:

Your ID
Proof of income
Financial history
Proof of residence
Your vehicle’s information

How Does Refinancing Affect Your Credit Score?

When you apply for a loan, lenders tend to check your credit. They perform a hard inquiry on your credit to check your credit score and history. It’s why refinancing lowers down your credit score temporarily.

If you hold certification for refinancing, you could save money from the monthly payments. If you have other debt to pay, you can utilize the money you’ve just saved.

What Are the Tips I Should Consider When Refinancing?

If you still plan to get an auto loan to refinance, here are some top tips to help you.

Your credit score and profile, car mileage, model, and trim will lead the lender to determine the new interest rate. So it’s best to keep these factors in good shape.

Additionally, the lenders will consider your loan-to-value ratio and the number of payments left to be paid for the original loan to come up with benefits for both parties. When considering refinancing a loan, it’s important to learn how much the car has depreciated, your loan-to-value ratio, and your current loans.

Once you get the desired interest rate, try your best to understand any additional fees or prepayment penalties so you recognize every single penny you will be paying.

If you have understood all of the above factors, take the next step and refinance your car with CarLoanRefinancing right away!

Top 5 Misconceptions About Refinancing a Car Loan

Do you wish to find a way to lower your monthly car payments? You know what, even saving $50 or $100 a month adds up to make a hefty sum of money in a year. According to a study done on auto loan refinancing in 2021, a car owner saves up to $990 annually through refinancing.

If you can find a loan refinancing with a lower interest rate, you’ll save large amounts from your monthly payments.

What Is Auto Loan Refinancing?

In simple words, refinancing a car loan means taking out a new loan to pay off the old loan. Since the motive of refinancing is to save money, you should find a new loan with a relatively lower interest rate to save up.

Since refinancing is similar to taking out a loan, the whole process is similar to applying for a personal loan. It requires you to have a well-off credit score and search for the most competitive interest rate to benefit from it.

If you think you are ready to shop for refinancing offers, you should be aware of these misconceptions. Understanding the refinancing details is the best way to get succeeded and, most probably, save money.

Here are the top five repeated misconceptions about auto loan refinancing:

Misconception #1: Auto refinancing is a time-consuming process

Whenever you plan to resell, trade, or refinance a car, you should be well aware of its value and cost. The value is what determines whether you will get a good deal or not. Since refinancing is taking out a brand new loan, you will have to get your car graded beforehand because it is the factor that will decide on the interest rate. The better the condition of the vehicle, the lower the interest rate.

Don’t you worry! Appraisals are very convenient, all thanks to efficient online sources. Your lender will look into the car model, mileage, trim, condition, and history and take care of the appraisal.

Misconception #2: Refinancing is inconvenient

Getting the ideal refinancing deals requires research and effort. But your lender will offer great help to make this process easier.

As you have heard, refinancing requires a visit to the DMV, but like an appraisal, your lender takes care of it. However, if you choose (company) for refinancing, we’ll have you covered. You will not have to stress over the appraisal and visit the DMV with us.

In general, you only have to go through the following few steps to get your auto loan refinanced:

Pre-qualification: Check your credit score to determine whether you qualify or not. A soft inquiry doesn’t affect your credit score at all.
Credit application: Once you’ve applied to refinance, a hard inquiry will take place.
Finalization: You have to submit any extra information, such as car titles.

Misconception #3: Refinancing requires a large sum of money

Since refinancing helps you save money, the fees related to the process are low as well. These fees include re-registration and lienholder fees, which are entirely inexpensive, and your lender will take care of it.

Important: Before going for refinancing, make sure that your balance is free from any prepayment penalty cost.

Misconception #4: After purchasing a car, you need to wait to refinance the car

This misconception is not true at all. You can refinance right away after purchasing a car or, you can also refinance before making the first car payment.

One reason to wait for 6 months before refinancing your loan is your credit score. Let it bounce back to normal, so you can effortlessly refinance to tackle all the hassles.

With CarLoanRefinancing, there is no time limit set for refinancing an auto loan. You need to be eligible for the set criteria.

You can look into the eligibility criteria on our website or contact the customer help center.

Misconception #5: Refinancing lowers your credit score

Your credit score may indeed dip down once your credit undergoes a hard inquiry. But remember that it is temporary. The effects of this hard pull would disappear within two years only.

Auto loan inquiries are grouped as single inquiries within an assigned time. For example, VantageScore provides you with a short rolling period of 14-days while FICO gives you a period of 45-days.

4 Things to Do After You Have Refinanced Your Car

Congrats, you have refinanced your car loan! You have taken a big step towards a worry-free and stable financial life. It’s a great thing which needs a big celebration.

Like most people, are you unaware of what to do after refinancing your auto loan? No? It’s normal. However, it is better to have a solid direction because it’ll prepare you for the upcoming life.

Knowing about loans will help you manage this process effortlessly. You would expect things that happen after the transfer of a loan from one lender to the other.

The after-refinancing process is not as complicated as it seems, especially when you choose CarLoanRefinancing for refinancing. Here is what will happen once you have completed refinancing your auto loan:

Pay off your old lender

Firstly, you have to pay off your old lender.

Most lenders or auto refinance agencies handle this first step for you. We also handle this step to make the refinancing process stress-free for you. In this step, your new lender will clear the old loan balance by sending a check to the previous lender. Once the old lender receives the payment check, the balance would become zero, and you would not make monthly payments to that lender anymore.

To keep your credit score safe, pay your old lender regularly to avoid any misfortunes.

Transfer the title

According to most states’ policies, the lender holds the car title when you pay off the loan. Since through refinancing, you are changing lenders, so the title gets transferred as well.

Once again, lenders and loan lending agencies do this step for you automatically. CarLoanRefinancing also performs this task on your behalf. Make sure to double-check whether your old lender has done the title transfer or not.

Start payments with your new lender.

The period when you get approval for an auto loan refinance and your old lender is receiving monthly payments can be too overwhelming. The reason is that you have two auto loans at a time, and both parties need fees until you close the other one.

In this intricate time, we give you thirty days to clear your first monthly payment once you’ve been approved for a loan refinance. At this time, we handle your previous loan balance on your behalf. Once this period is over, you will be fully in charge of paying monthly payments for the new car refinance plan.

At CarLoanRefinancing, you have the convenience of an autopay feature. It’s the best thing out there because it saves you from missing monthly payments.

Finish paying off the new lender and get the title

After the previous step, only one thing remains. That is to pay off your new loan. If you choose to set up an autopay method, it will automatically send monthly payments to the new lender on time. In this way, you don’t have to worry about making monthly payments.

Congratulations! Now, you own the car outright, and you will not have to stress about sending loan payments each month. But, you have one very last step to take care of. That is to fully ensure that your lender has transferred the car title to you because now you are the sole car owner.

In case you have moved and forgotten to change your address, you should do it right away. Or else the lender may send the car title to the old address. Once you get the car title under your name, make sure to store it in a safe and secured place.

Compare Car Refinanced Options With CarLoanRefinancing.com

If you follow these steps, you’ll effortlessly get your car refinanced with the help of the best personal financers at CarLoanRefinancing.com

However, if you are still contemplating whether to get the loan refinanced or not, consider this: in addition to providing you with time-saving and effortless steps to refinance, getting a new lender or company also offers efficient ways to save up money. By taking the best advantage of CarLoanRefinancing‘s AI, you can contact CarLoanRefinancing-powered banks that will offer you exclusive lower rates without upsells and pricey additions. Besides, they also suggest loans with different terms to help you choose a suitable one.

How To Refinance Your Car Loan

Refinancing a loan can be a bit tricky but has both pros and cons. If you are adamant about financing your loan, the following few questions are essential to answer. Well, we are here to help and clear your mind on the first one of how to refinance your car loan.

If you are that kind of a person who has looked over the billboard saying, Do you want an auto loan rate way lower than what you’re paying now? Now is the right time to think over this claim.

We’re here to provide you with a complete picture of how to refinance your car, numerous alternatives for where to refinance, and why a local lender can be the best choice for vehicle refinancing if you’re a car owner looking to refinance your vehicle. Grab a pen and paper to write down insights on all of this.

Impact of Refinancing a Car Loan on a Credit Score

Let us start with some fundamentals to ensure you are on the correct site. What is the effect of refinancing an existing auto loan on your credit score?

To qualify for a vehicle-refinancing loan, you must have a good credit history. Based on your credit history and present financial situation, a potential lender will decide whether to provide you with a loan.

If your credit score has dropped a bit since you first financed your vehicle, it is unlikely that you will receive a better offer now, so do not bother trying. Refinancing your auto loan can sometimes hurt your credit score, bus; the damage is minor in most circumstances and only lasts a short time.

Many first-time car buyers have a “thin” credit file, which means they do not have enough automobile payment history to prove their ability to repay their vehicle loan on time and overtime. All you have to do is be consistent: after a year, as long as you do not fall behind on payments, you can look into refinancing.

How to Refinance Your Car Loan?

When your credit score has improved, you can finally start with refinancing your loan. The foremost step is to determine your objective for thinking of an auto loan.

Here is what else you will need to know:

1. Your credit score

If your credit has improved not long ago, you may be able to get a cheaper interest rate and monthly payment.

2. Your ID and car details.

A lender will ask for information regarding the vehicle you are refinancing.

That is all you need to know!

Where Can You Get the Outstanding Deal on a Car Loan to Refinance?

Now that you are ready to refinance and have done your research, you are probably recognizing that it is time to jump ship and refinance your vehicle loan with a financial institution that can offer you a better rate, conditions, and service.

So, what options do you have?

1. Megabanks

2. Community financial institutions such as small local banks and credit unions.

Which One Is the Best Option for Vehicle Refinancing?

If you acquire a car refinance loan from a community financial institution, you get to start with your auto financing. This is incredibly satisfying if you had a bad initial loan from a car dealer or are ready to quit the impersonal megabank experience in favor of a community-oriented bank or credit union.

Last Verdict

All in All, Refinancing is a terrific approach to obtain the best auto loan for your circumstances. By gathering crucial information and conducting research, you may get better loan terms that save you money by offering a cheaper rate.

We hope that now you know the essential details on how to refinance your car loan and are ready to decide. If you are still unsure if an auto loan refinancing is suitable for you, think about alternative options for lowering your car payment.