Refinance Auto Loan – When to Refinance Your Car Loan, auto loan refinancing.#Auto #loan #refinancing


Refinance auto loan – When to refinance your car loan

Auto loan refinancing

With interest rates remaining so low, an auto loan refinance may have crossed your mind — and it could be a good idea.

Doing so could save hundreds of dollars each year and sometimes thousands over the life of the loan.

If your current car loan interest rate is above 6%, you might want to investigate refinancing.

Unlike refinancing your mortgage or even consolidating credit card balances, refinancing your vehicle loan is usually quick, easy and painless. No appraisal will be required. And usually there are minimal, if any, fees.

But refinancing is not for everyone. It makes sense if, since the original loan, you find yourself in one or more of these five situations:

  • Interest rates have dropped. If interest rates have dropped more than a couple of points since purchasing your vehicle, you could save some money. In this case, loans at refi rates are considered used car loans and as such, the rates usually are higher than new car loans. Remember, even a percentage point or 2 can make a big difference over the life of the loan.
  • Your credit score has improved. If you had a few negatives on your credit report — or had no history of credit — when you bought your car, but your credit is healthier now, you may qualify for a lower interest rate. Interest rates of 18% or more for consumers with a thin credit history are common. Several months of on-time payments could entice a lender to refinance that loan at a lower rate. Steve Schooff, a former spokesman for Capital One Auto Finance, says consumers should check their credit scores before refinancing.Your credit score has a major influence on auto loan rates. Get your score for free at myBankrate.
  • You didn’t get your best rate when you purchased. Just because you had a high credit score and unblemished credit history doesn’t mean you got the best rate you could have received when you purchased the car. Dealer-sourced vehicle loans commonly carry a higher rate than the consumer deserves because the consumer simply didn’t know better. The extra money is a profit source to the dealer, like rust-proofing or extended warranties. When this is discovered after the fact, it may pay to refinance.
  • Your personal financial landscape has deteriorated. If you have had a financial setback and need to reduce your payments, refinancing could be a solution by increasing the loan term, thereby lowering the monthly payment.
  • Your car lease is expiring and you want to purchase the vehicle. When you fulfill the terms of a lease, you typically have the option to buy the vehicle.

Finding a lender that refinances is the easiest step in the process. Credit unions do big business in vehicle loan refinancing and they have money to lend. You will need to open a checking or savings account at one if you’re not already a member.

How much can you expect to save? According to Schooff, if one year ago you took a $25,000 auto loan for five years at 7.75% interest, refinancing the balance today at:

  • 4.75% for the remaining four years of the loan would save $1,373 — $28.60 per month.
  • 5.75% for the remaining four years of the loan would save $906 — $18.88 a month.
  • 6.75% for the remaining four years of the loan would save $448 — $9.33 a month.

Refinancing isn’t an option for everyone. If the vehicle is worth less than the loan balance (upside down), a lender probably won’t take the chance and at the same time lower your interest rate. You can determine the current value of the vehicle through Kelley Blue Book, or KBB.com, Edmunds.com or AutoTrader.com.

Other requirements may also disqualify you, such as the age of the vehicle and the outstanding balance to be refinanced. Capital One Auto Finance, for example, will not refinance a vehicle more than 7 years old; the amount of the loan can be no less than $7,500 and no more than $40,000.

It’s important, Schooff says, “that consumers determine if their current auto loan has any penalties for paying off the loan early. This will impact how much they can save from refinancing.”

Call your lender and request the current payoff amount of your loan. This is the amount of money you need to refinance. It is also the figure you’ll compare against the vehicle’s value to determine if the vehicle is worth more than the amount you need to borrow.

There is no required amount of time from the date of the original loan until you can refinance. Actually, because of the way most auto loans are structured, the majority of the interest is paid during the first half of the term of the loan. The younger the current loan is, the more money refinancing will usually save.

Once you know your payoff, you can determine how much refinancing can save each month by using Bankrate’s auto loan calculator to find your new payment, then subtract it from your existing payment.

Because most refinancing loans are fairly straightforward, decisions are usually made quickly. Schooff says Capital One Auto Finance typically gives the consumer a decision by email within 24 hours of submitting the online application.

If you find yourself upside down in your car loan and for personal reasons need to lower your payment, you may be able to persuade your current lender to modify your loan, lowering the monthly payments by extending the term of the loan or reducing the interest rate.

It’s important to act before your payments fall behind. The earlier you open communications with your lender, the better the chance of coming to an arrangement.


How Refinancing Works: Pros and Cons of New Loans, refinancing auto loan.#Refinancing #auto #loan


Learn About Refinancing: Pros and Cons of Replacing a Loan

Refinancing auto loan

If you have a loan that’s too expensive or too risky to live with, you can often refinance into a better loan. Things may have changed since you borrowed money, and there may be several ways to improve the terms of your loan. Whether you’ve got a home loan, auto loans, or other debt, refinancing allows you to shift the debt to a better place.

What is Refinancing?

Refinancing is the process of replacing an existing loan with a new loan.

The new loan pays off the current debt, so that debt is not eliminated when you refinance. However, the new loan should have better terms or features that improve your finances. The details depend on the type of loan and your lender, but the process typically looks like this:

  1. You have an existing loan that you would like to improve in some way.
  2. You find a lender with better loan terms, and you apply for the new loan.
  3. The new loan pays off the existing debt completely.
  4. You make payments on the new loan until you pay it off or refinance.

Why People and Businesses Refinance

Refinancing is time-consuming, it can be expensive, and a new loan might be missing attractive features that an existing loan offers. So why go through the process? There are several potential benefits to refinancing.

Save money: A common reason for refinancing is to save money on interest costs. To do so, you typically need to refinance into a loan with an interest rate that is lower than your existing interest rate.

Especially with long-term loans and large dollar amounts, lowering the interest rate can result in significant lifetime interest savings.

Lower payments: Refinancing can lead to lower required monthly payments. The result is easier cash flow management and more money available in the budget for other monthly expenses.

When you refinance, you often restart the clock and extend the amount of time you’ll take repay a loan. Since your balance is most likely smaller than your original loan balance and you have more time to repay, the new monthly payment should decrease.

A lower interest rate (with all other things staying the same) can also lead to lower monthly payments. However, simply extending the life of a loan can actually mean you’ll pay more for the loan over the long term. To see how interest rates and your loan term affect cash monthly flow, see how to calculate loan payments.

Shorten the loan term: Instead of extending repayment, you can also refinance into a shorter term loan. For example, you might have a 30-year home loan, and that loan can be refinanced into a 15-year home loan. That move might make sense if you want to make larger payments to get rid of the debt more quickly. Of course, you can also just make extra payments without refinancing. Making larger payments without refinancing would help you avoid paying closing costs and keep some flexibility (you can pay more than the minimum, but you don’t have to if something comes up).

Consolidate debts: If you have multiple loans, it might make sense to consolidate those loans into one single loan—especially if you can get a lower interest rate.

It’ll be easier to keep track of payments and loans, but consolidating can cause problems (see below).

Change your loan type: Even if you don’t lower your interest rate or monthly payment, it can make sense to refinance for other reasons. For example, if you have a variable-rate loan, you might prefer to switch to a loan with a fixed rate. A fixed interest rate could offer protection if rates are currently low, but expected to rise.

Pay off a loan that’s due: Some loans, particularly balloon loans, have to be repaid on a specific date. But you might not have the funds available a large lump-sum payment. In those cases, it might make sense to refinance the loan—using a new loan to fund the balloon payment—and take more time to pay off the debt.

For example, some business loans are due after just a few years, but they can be refinanced into longer-term debt after the business has established itself and shown a history of making on-time payments.

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Disadvantages of Refinancing a Loan

Refinancing is not always a wise move. Even if you secure a lower interest rate or lower monthly payment, it could be a mistake to get rid of existing loans. Evaluate the pros and cons carefully before you move forward.

Transaction costs: Refinancing can be expensive. Especially with loans like home loans, you’ll pay closing costs which can add up to thousands of dollars. You want to make sure you’ll more than break even before you pay those costs. Other types of loans, including loans from online lenders, can include processing and origination fees.

Higher interest costs: Refinancing can backfire. When you stretch out loan payments over an extended period, you pay more interest on your debt. You might enjoy lower monthly payments, but that benefit can be offset by the higher lifetime cost of borrowing. Run some numbers to see how much it really costs you to refinance. Do a quick loan amortization to see how your interest costs change with different loans.

Lost benefits: Some loans have useful features that will be eliminated if you refinance. For example, federal student loans are more flexible than private student loans if you fall on hard times. Plus, federal loans might be forgiven if your career involves public service. Likewise, keeping a fixed-rate loan might be ideal if interest rates skyrocket—even though you’d temporarily get a lower rate with a variable rate loan.

What Doesn’t Change

When you refinance, some things change, and some things don’t.

Debt: Your loan balance will not change. You’ll still have the same amount—unless you take on more debt while refinancing. It’s possible to do cash-out refinancing or roll your closing costs into your loan, but that just increases your debt burden.

Collateral: If you used collateral for the loan, that collateral will probably still be at stake (and required) for the new loan. For example, refinancing your home loan means you could still lose the home in foreclosure if you don’t make payments. Likewise, your car can be repossessed with most auto loans. Unless you refinance into a personal unsecured loan, the collateral is at risk. In some cases, you can actually increase the risk to your collateral when you refinance. Some states allow non-recourse home loans to become recourse loans after refinancing.

Payments: You still have to make payments, but in most cases, your monthly payment will change when you refinance. You’ve got a brand new loan, and the payments are calculated with that loan balance, term, and interest rate. To avoid getting caught by surprise, learn how to model a loan yourself (it’s easy with free online spreadsheets).


Refinance Auto Loan – When to Refinance Your Car Loan, refinancing auto loan.#Refinancing #auto #loan


Refinance auto loan – When to refinance your car loan

Refinancing auto loan

With interest rates remaining so low, an auto loan refinance may have crossed your mind — and it could be a good idea.

Doing so could save hundreds of dollars each year and sometimes thousands over the life of the loan.

If your current car loan interest rate is above 6%, you might want to investigate refinancing.

Unlike refinancing your mortgage or even consolidating credit card balances, refinancing your vehicle loan is usually quick, easy and painless. No appraisal will be required. And usually there are minimal, if any, fees.

But refinancing is not for everyone. It makes sense if, since the original loan, you find yourself in one or more of these five situations:

  • Interest rates have dropped. If interest rates have dropped more than a couple of points since purchasing your vehicle, you could save some money. In this case, loans at refi rates are considered used car loans and as such, the rates usually are higher than new car loans. Remember, even a percentage point or 2 can make a big difference over the life of the loan.
  • Your credit score has improved. If you had a few negatives on your credit report — or had no history of credit — when you bought your car, but your credit is healthier now, you may qualify for a lower interest rate. Interest rates of 18% or more for consumers with a thin credit history are common. Several months of on-time payments could entice a lender to refinance that loan at a lower rate. Steve Schooff, a former spokesman for Capital One Auto Finance, says consumers should check their credit scores before refinancing.Your credit score has a major influence on auto loan rates. Get your score for free at myBankrate.
  • You didn’t get your best rate when you purchased. Just because you had a high credit score and unblemished credit history doesn’t mean you got the best rate you could have received when you purchased the car. Dealer-sourced vehicle loans commonly carry a higher rate than the consumer deserves because the consumer simply didn’t know better. The extra money is a profit source to the dealer, like rust-proofing or extended warranties. When this is discovered after the fact, it may pay to refinance.
  • Your personal financial landscape has deteriorated. If you have had a financial setback and need to reduce your payments, refinancing could be a solution by increasing the loan term, thereby lowering the monthly payment.
  • Your car lease is expiring and you want to purchase the vehicle. When you fulfill the terms of a lease, you typically have the option to buy the vehicle.

Finding a lender that refinances is the easiest step in the process. Credit unions do big business in vehicle loan refinancing and they have money to lend. You will need to open a checking or savings account at one if you’re not already a member.

How much can you expect to save? According to Schooff, if one year ago you took a $25,000 auto loan for five years at 7.75% interest, refinancing the balance today at:

  • 4.75% for the remaining four years of the loan would save $1,373 — $28.60 per month.
  • 5.75% for the remaining four years of the loan would save $906 — $18.88 a month.
  • 6.75% for the remaining four years of the loan would save $448 — $9.33 a month.

Refinancing isn’t an option for everyone. If the vehicle is worth less than the loan balance (upside down), a lender probably won’t take the chance and at the same time lower your interest rate. You can determine the current value of the vehicle through Kelley Blue Book, or KBB.com, Edmunds.com or AutoTrader.com.

Other requirements may also disqualify you, such as the age of the vehicle and the outstanding balance to be refinanced. Capital One Auto Finance, for example, will not refinance a vehicle more than 7 years old; the amount of the loan can be no less than $7,500 and no more than $40,000.

It’s important, Schooff says, “that consumers determine if their current auto loan has any penalties for paying off the loan early. This will impact how much they can save from refinancing.”

Call your lender and request the current payoff amount of your loan. This is the amount of money you need to refinance. It is also the figure you’ll compare against the vehicle’s value to determine if the vehicle is worth more than the amount you need to borrow.

There is no required amount of time from the date of the original loan until you can refinance. Actually, because of the way most auto loans are structured, the majority of the interest is paid during the first half of the term of the loan. The younger the current loan is, the more money refinancing will usually save.

Once you know your payoff, you can determine how much refinancing can save each month by using Bankrate’s auto loan calculator to find your new payment, then subtract it from your existing payment.

Because most refinancing loans are fairly straightforward, decisions are usually made quickly. Schooff says Capital One Auto Finance typically gives the consumer a decision by email within 24 hours of submitting the online application.

If you find yourself upside down in your car loan and for personal reasons need to lower your payment, you may be able to persuade your current lender to modify your loan, lowering the monthly payments by extending the term of the loan or reducing the interest rate.

It’s important to act before your payments fall behind. The earlier you open communications with your lender, the better the chance of coming to an arrangement.


Refinancing a Car Through SCCU is Fast, Easy and Convenient, Space Coast Credit Union, auto loan refinancing.#Auto #loan #refinancing


Member Rewards

Premier, Elite, and Diamond Eite Members receive a discounted auto service agreement.

Refinancing a Car: Benefits

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Save money when you lower your auto loan rate or monthly payment with an auto loan refinance from SCCU. Refinancing your auto loan from another lender is fast, easy, and convenient.

  • Same low credit union rates 1 for auto loan refinances and purchases
  • No out of pocket costs 2
  • No payments for up to 6 months 3
  • Low cost Guaranteed Asset Protection (GAP) coverage, Payment Protection, and warranties available to add on to your loan

All Personal Auto Loans Offer

  • No application fee
  • Terms up to 84 months 4
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  • SCCU Routing Number: 263177903

Space Coast Credit Union membership is open to all who work or live in Brevard, Broward, Flagler, Indian River, Martin, Miami-Dade, Monroe, Orange, Osceola, Palm Beach, Seminole, St. Johns, St. Lucie, or Volusia Counties in Florida.

  • Brevard: 321-752-2222
  • Broward: 954-704-5000
  • Miami-Dade: 305-882-5000
  • All Other Areas: 800-447-7228

*APR = Annual Percentage Rate. ^APY = Annual Percentage Yield.

Auto loan refinancing

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Learn more about the Member Rewards program.


Auto Refinance – Bad Credit Auto Loan Refinance, auto loan refinancing.#Auto #loan #refinancing


Auto Refinance Bad Credit Car Refinance Easy Auto Loan Refinance

If you’re not completely happy with your current auto loan, you may be able to do a refinance auto loan. This can result in a lower car payment, reduced interest rate, and even the ability to skip a car payment.

Auto loan refinancing

Is Refinancing Right for Me?

A refi car loan is not ideal for everyone, but see for yourself if you are somebody who could benefit from considering automobile refinancing.

  • Are you currently paying installments on a vehicle?
  • Are you dissatisfied with some aspect of your financing arrangement?
  • Do you currently have two or more years until your vehicle is paid off?
  • Is your vehicle less than 5 years old, with under 70,000 miles?

Why do people use this service?

It’s simple: People may have had bad credit when financing originally, and are not happy with their current vehicle financing arrangement. They now have options that weren’t available some time ago, when the only alternative to paying the monthly installments until the vehicle was paid off was to come up with the entire balance and pay it off the hard way.

Lower my Interest Rate

Are you in better financial standing than you were when you first bought your wheels? Has your pay rate or salary increased since then? If so, you are a prime example of somebody who can get smaller refinance rates and save loads of cash in the end.

Lower my Payments

By stretching the payments out over a longer time frame, the amount of the payment itself can be reduced significantly. This can come in especially handy for people who are in serious need of saving some cash each month, but it is not necessarily the best option for everybody. Increasing the length of this type of financing will lower your monthly payment, but you will end up sending in a larger quantity of payments, and therefore will pay more for interest in the end.

Skip a Payment

While you are assuming a new financial agreement, you will not begin repaying until the following month. So this means while keeping the same vehicle and working towards lowering either your interest rate or your monthly payments, you now have the opportunity to skip a payment altogether. Everyone can use extra cash from time to time, and a few hundred dollars that would otherwise go towards your monthly payment can certainly be used elsewhere.

To learn more about the services we offer, please visit our Frequently Asked Questions Page.


Refinance Your Auto Loan – Pre-Qualify in Minutes, Progressive, auto refinancing.#Auto #refinancing


Auto Loan Refinancing

Customers save on average $2,500 over the life of the loan *

Pre-qualify for auto refinancing in minutes

No impact to your credit score

Want to see how much you could save by refinancing your auto loan? Pre-qualify online with Progressive Auto Finance by Capital One. In just a few minutes, you’ll see your calculated rate/term options and how much you can save. And because it’s only a “soft” credit inquiry when you pre-qualify, there’s no impact to your credit score.

If you like what you see, go ahead and complete the official auto loan refinance application and E-Sign your contract. If not, there are no fees and no obligation to buy.

Auto financing is available if you’re purchasing a new or used car.

How refinancing a car loan works

Pre-qualify online for free

If you pre-qualify, you’ll see your estimated monthly payment, term and APR. You may have more than one option to choose from.

Submit a credit application and sign your contract

Once you choose your offer, complete your credit application. You can even sign your contract online. When you submit your official auto loan refinance application, there will be a “hard” credit inquiry that will affect your credit.

Finalize your auto loan refinance application

Capital One may need some documents to complete your refinance, such as VIN, lender details, proof of income, proof of residence and/or a title document. After verifying your information, we’ll pay off your current loan. Then, you’re all set and you officially refinanced.

See more info on car loan refinancing with Capital One.

Auto refinancing is one more way we help you find what you need

Progressive offers so much more than auto insurance. Whether you’re refinancing a car, buying a home, starting a business, planning a wedding, increasing your financial assets or more—we’re here to help you find protection along the way. See more insurance choices.

Pre-qualify for auto refinancing in minutes

The #1 Insurance Site

Copyright 1995 – 2017. Progressive Casualty Insurance Company . All Rights Reserved.

We offer insurance by phone, online and through independent agents. Prices vary based on how you buy.

* Lifetime savings claim is based on average reduction in total lifetime payments Capital One customers experience over the life of the loan compared to their prior lifetime payments. Claim does not include customers who choose to extend the number of remaining payments on their auto loan. Lifetime savings may result from a lower interest rate, a shorter term or both. Your actual savings may be different.

Documentation may be required. Credit approval required. Terms, conditions, and restrictions apply, including vehicle eligibility and amount refinanced. Capital One Auto Finance only refinances loans from other financial institutions, not including Capital One subsidiaries. Find out more at Capital One. Auto financing products and services offered by Capital One, N.A. © 2016 Capital One.

Vehicle financing and refinancing and associated services are provided by Capital One, National Association, which is not affiliated with Progressive.

Progressive is not a lender or financing/refinancing broker, does not originate or arrange financing/refinancing, and does not endorse and is not responsible for Capital One’s products or services, the content or operation of its website, or how it handles or uses your information. Information you provide to Capital One is subject to its privacy policies and website terms of use, and may be shared with us.

Progressive receives compensation from Capital One for loans made through this program. Contact us for more details.

Financing/refinancing may not be available in all situations.

Void where prohibited by law.