Consumption and Real Estate
What does refinancing your car loan mean?
Question : What does refinancing your car loan mean?
I’m sorry if this is a really dumb question, but earlier someone suggested I refinance my car loan, but I have no idea what that means. I looked it up online, and it said something about lowering your payment interest when you transfer to a new lender. Coudl someone please explain in detail what refinancing your car loan does? Does it lower the amount of money you pay monthly? And if so, does that mean I would have to pay for more months?
refinancing
Best answer:
Answer by NoraCat
Refinancing an existing car loan is an easy process. A new lender pays off your old car loan, and the title is then transferred to that new lender. Your monthly payments are then made to your new lender.
People refinance to get a better interest rate, which means over the full time of the loan, you’ll end up not having to pay as much. Your monthly payments will be less, or the number of payments you have to make will be less, or both.
But here’s another idea – if you find that your car payments are really hurting your finances, consider just selling your car, paying off the loan, and then buying a cheaper used car with or without a loan. Yeah, you won’t have a flashy set of wheels anymore, but you’ll have a lot more money in your pocket.
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#2 written by My Take on It 1 year ago
If you have a car loan that has a high interest rate and you have made payments for more than 2.5 years you *may* be able to refinance the loan into a better rate (interest rate) and may be able to lower your payments.
The thing is, if you have a car loan with a high interest rate, it is because you had little credit history or fair to bad credit to begin with. If you haven’t addressed your credit issues and your score is still not above average, you won’t be refinancing into a better rate.
It is also not advised to refinance more than 2 to 3 years. If you refi and take out a 60 mo loan, you will end up paying way more than if you just paid on the loan you originally had.
It is difficult though to refi a car. Especially if you bought it used to begin with. Lenders have very strict criteria for what they will lend on when it comes to used vehicles.
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#3 written by Toni W 1 year ago
With the way that auto loans have been difficult to get recently. The web places are fast and sometimes have easier approval sometimes.
Ive been told this site is good http://auto.deal4-you.com
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#4 written by philobiomedic 1 year ago
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Financed cars is more expensive to insurance cause it requires full coverage. You can compare how much you would pay for full coverage of this car using this tool – carquotes.fateback.com