How much can you save. Well in many instances it can be dramatic depending on the size of your loan. Saving $100 or more each month and upward of 6K in interest over the life of the loan is not unusual.

Who should consider automobile refinancing? Basically anyone who took out a loan on a large purchase. Also, those people who bought a car with less than stellar credit and have had time to repair and clean it up a bit should look into this. If you are considering buying that car you are leasing…there you go! You may be able to refinance that loan at a lower rate and keep the car with less expense.

Are there any requirements? Well yes, just like any other type of loan there are things you have to pay attention to. If your car is to old for instance, and you paid little or no money down and bought at full price with a ton of add-ons, then it is likely that you own more than the car is worth. Remember, the object to refy that car with little or no money out of your pocket. The cars total mileage may also be a factor. Way high mileage may signal a bad investment for the lender.

Also, if loan amount is under $7000 or so most lenders will not make the loan. With that small amount of a loan the lender doesn’t make much. 

Your credit. The better your credit is the better the refinance rate you will get. Likewise, if your credit has gone down hill since buying your car you better stay with your current loan.

In my recent article I mentioned that many auto refinance loans do not add any costs. This is true if you shop around for the right loan but there are lenders out there who will take advantage of you so please compare what you are getting.

Also pay attention to the length of the loan you are refinancing into. Some lender may actually lengthen your loan thereby lowering your payment even more. This may be a good thing or not depending on your circumstance so be prepared to negotiate that before signing off on that new loan.

If you can, refinance and save some money. Check out our car payment calculator and do the math. It’s worth looking into and in the end could be the smartest move you make this month! 

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