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You may have been so exciting with the purchase of your new car, you forgot to do your homework on the financing side of buying it. You may not have gotten the best deal on your new car loan.
If you got your financing from the dealer it may be at an interest rate that is much higher than some other lenders are offering.
If this is the case, you are paying way too much on your monthly payments and on your car loan in total. If your credit is not A-1, you could be paying a penalty of higher interest rates for that as well. It may be time for you to look into refinancing.
It's easy and usually quick to refinance your car loan. You must fill out a loan application, and when it has been approved, your present car loan will be paid in full by the new loan finance company, or bank if that is who you have chosen to go through.
Hopefully your rates are at a more reasonable percent, since you should be paying at a lower interest rate then you were. You can't begin to imagine how much money those few interest points will make over the life of your loan. It could amount to hundreds, or even thousands, more than you will have to pay now. All because you did a little homework. Not bad for a few days work!
You don't have to have a new car to consider refinancing your car loan to save money, but most people do not think about refinancing their present, used vehicle. It is the same as refinancing your home, but not a lot of people think of it in the same way.
You refinance your car at a lower rate, use the money to pay off the higher interest rate loan, and now your payments are costing you less. The difference, of course, is the interest rate of the loan you have taken. If your new loan is at a lower annual percentage rate than your old loan was, you have cut your payments, and can use the money to pay your car off quicker, or to take that well earned vacation you want.
Refinancing your car loan is becoming popular since the interest rates are still at a lower percentage than they may have been when you bought your car, or you may just have found a better deal.
A lot of people with not so great credit need to check out the current APR that their bank or credit union is offering. Most people with poor credit don't even think they can get a loan to refinance their car, but they're wrong.
This is a common assumption, but it usually prevents a lot of people from saving some money. Even if you think your credit rating is poor, try for the refinance. It can't hurt, and it may help you save some money.