Consider Refinancing Your Car Loan To Save Money
Are you thinking of a refinancing car loan to make your payments more affordable? Did you know that not only will it make the payments less, but in
the long run it can save you money in interest if done correctly? But first you need to understand where you are with your current car loan.
If you have bought a car in the last year or two, you know that the excitement of purchasing a new vehicle can sometimes overwhelm you. Instead of
looking at the interest rate and trying to get the lowest one possible, many people are so caught up in the moment that they end up with a higher rate
than they wanted.
Rates vary from dealer to dealer and state to state. Some people have reported getting an interest rate of almost 19 percent, which is ridiculous, even
in a bad economy or with bad credit. The interest rate is dependent upon several factors such as your credit, the price of the vehicle you are
purchasing, and how long you are financing it. It also depends on how much effort you put into shopping around for the best rates!
There are several programs available to help you to reduce your interest rates. A second chance finance offer can lower your interest rate by up to 11
percent. Refinancing car loan payments can make sense if you think about the long-range advantages as well as the current ones. Yes, you will have
a lower payment but you can also save thousands on interest depending on the price of your car.
Take, for example, a car loan financed for 84 months at 12.6 percent. If you can get your interest rate lowered to even 8.99 percent and a year cut off
the financing time, a savings of $7,647.79 in interest payments are realized. Now this is really when a refinancing car loan makes sense. Remember,
you are no longer financing the entire brand new cost of the car, but only the outstanding balance where you have already reduced that balance from
the payments you have been making to date.
The good news is that not only do you save money on interest but when your car is