Refinance Car Loans – Make your Dream Car Less Burdensome
The dream car you bought some time back is now in fact is draining away your finances. This is because you are paying high amounts per month towards the loan you took to buy the car. Still, there is a way out of the trouble. You can opt for replacing the existing car loan with a new one. In doing so you would be refinancing your car loan.
The main advantage of getting rid of your existing car loan is that you are no longer paying big money each month. This is made possible as you go for taking a new car loan. This new loan is refinancing the car. This way you can save lots of money since the refinancing is done at lower rate of interest.
Clearly, you should be opting for a new loan on the same car when interest rates on auto loans have fallen in the market. But that is not the only reason. You can go for a new loan also because your credit score has improved a lot in past months since you have been making timely repayments towards existing car loan installments. With an improved credit score, chances of taking a Refinance Car Loans at lower interest rate only increase. Another reason may be that you want to repay the loan early to get rid of it. So, keeping this motive in mind you can opt for car refinancing that is of shorter duration. In short the reasons for refinancing loans for car vary from borrowers to borrowers.
The loan amount approved will be the balance payments you are to make towards existing car loans. The lender will not be approving any amount more than that. So, first of all you should know current price of your car and the balance payments towards the car in order to know how much of a refinance do you qualify for.
Since you are looking for a lower rate refinancing of your car, searching extensively for the suitable lender matters most. Online lenders should be preferred as they have competitive rates and hence chances of refinancing beneficially are greater. Ensure timely repayments for further enhancing credit score.
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What is the best place to go to refinance your car loan to a lower payment?About Author
Kevin Clark is a financial analyst at Easy Refinance Car Loans. In recent years he has taken up to provide independant financial advice through his informative articles. To find refinance car loans, car refinance, bad credit car refinance that best suits your need visit http://www.easyrefinancecarloan.com/
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July 15th, 2009 at 12:30 am
You can't refinance into someone else's name. You are going to have to buy the car from him, meaning you will need a new car loan altogether.
When looking for a new car loan, visit some local credit unions and never accept over 15% interest, even with the worst credit. Just trust me on that.
Good luck!
July 15th, 2009 at 1:16 am
At a 166% LTV (loan to value) you are going to be very hard pressed to find a lender who will refinance for you. Most will go 150% max, which means you would have to get your loan down to $13,500 to even start to qualify.
Your best bet is to start paying it down. Look at your expenses every month and start cutting stuff out. Pay a little more every month to get the balance down and then in a year or so, depending on your credit and age of the car, you can try again when you owe less than 1.5 times the value of the car.
Best of luck
July 15th, 2009 at 2:59 pm
You have to ask what is the payoff of your car as of today. It is usually a simple interest loan. Then you can ask for Pay-off for the car and hope it sells. Take over payments is a take it over thing and also says you cant afford it and that would mean you have taken pour care of the care maintenance because you have a hard time making payments. So it will be hard to sell . You would be better of keeping it and paying the car off.
You see, if I am looking for a car , 2 cars I would never buy.
1. Take over payments. Why? Because the owner cannot afford the car. Oils changes are missed Tors are worn, belts may need changing ,etc
2. Repo. for the same reasons and more. IE it may not have even been washed, stains, dents.
I mean no offense.
Just giving you some facts of car buying.
Hope that helps.
July 15th, 2009 at 3:30 pm
I did it with my car loan. I just went to a lender that I knew did car loans and they pulled up the value of my car using kelly blue book and then they told me sure!! They gave me a lower rate and a lower payment. Although, I did have to do some shopping for the right payment it was all worth it in the end
July 15th, 2009 at 5:41 pm
yes, you can refinance. But it is not in your best interest. Right now you have a 7.9% rate. That is pretty decent. If you refinance, you will not lower hte rate. In fact, the rate will go up. Because you are looking for a USED car loan now. On a vehicle that is about to be 4 yrs old. So, a higher rate. The only way to lower the payment then, is to go longer term. You have been paying 2 yrs. Do you want to keep paying 4-5-6 more years? How much money DO you want to spend on this depreciating piece of property?
After 24 x 570 = $13,680. Then you want to make longer payments on 22k more. The rate will be higher, there is no disputing that. So lets say you get a 9.5% rate on 60 months (you have to go 60 to see any appreciable difference in payment) 60 x 462 = 27,720.
You will have been paying for SEVEN years
You will have paid a total of $41,400
In seven years that car will be worth about $3000 (educated guess).
You will have pushed over $38,000 into a hole.
If you keep paying on the current note, you will save interest. You will save your money. And you will be out from under the car faster. If you stretch this term out, be prepared to drive this car until 2013. It will take you that long to be in a position to get out from under it.
Think it over
July 16th, 2009 at 11:37 am
If when you got divorce you both decided that the car was yours then see if you have that somewhere in writing, if so then no she can't make you. Who was first on the loan, you or her? I know when my mom cosigned for me she was first on the loan and I was second meaning the car was her property but that I was allowed to drive it and make the payments on it. I would advise you to talk to your lawyer asap.
July 16th, 2009 at 6:28 pm
Modern car loans from reputable financial institutions should be made with simple interest – you pay a portion of your payment is interest and a portion is principal each month. That being said, EVERY DAY THAT YOU HAVE MONEY BORROWED AT A HIGHER INTEREST RATE, IT IS COSTING YOU MORE INTEREST. Make the large payment on the higher interest loan now and next month you will be paying more toward principal, and the month after that you will be paying more toward principal.
Now when it's time to re-finance, you don't have to take out as large of a loan, which in most cases reduces your loan origination fees and taxes that are often charged, and you continue that smaller loan at a smaller interest rate.
July 16th, 2009 at 10:16 pm
A refinance is nothing more than getting a new loan to pay off your old loan. Depending on your circumstances, you may or may not be able to refinance — and it may or may not lower your payments. Here's more about it:
http://www.leaseguide.com/Articles/auto-loan-refinance.htm