There's a good chance auto refinance rates have dropped since you bought your last car. If you're still making payments on a bank auto loan, paying it off with a new loan from one of the respected refinance companies affiliated with Auto Protectors could save you $1,000 or more per year. If your financial situation has improved since buying your car, you have even more reason to check out the offers the nation's best auto refinance companies can quote you on the Auto Protectors site. There are several factors that may have changed in your life that could make auto finance rates more attractive than your current interest, payment, and other loan terms:
- Improved Credit Score – Most lenders use your credit rating – a formula that takes into account how much and how often you borrow, how many credit accounts you have open, the number of times you have been late in making payments, and more – to help make their loan determination. If your score is too low, banks, car dealerships, and credit card companies may not let you open an account. If they do, people with lower scores represent higher risk, and creditors will offset the greater risk with higher interest rates. If your credit were marginal when you obtained your current auto loan but has improved since then, a refinance auto loan could lower your payments.
- Less Debt – Have you recently paid off your second mortgage or a student loan? Eliminating that big monthly payment looks good in the eyes of auto refinance companies. It means you have more disposable income and makes it less likely that you will find your bank account empty when it comes time to make your auto loan payment. If your original interest rate was based on a higher monthly debt burden than you now bear, you might be in for a nice surprise in the form of lower payments. Input your details on the Auto Protectors form and see for yourself.
- More income – As with lower debt, a promotion, new job, or side business that brings in more money can make you eligible for the best auto loan refinance rates available online. Bigger numbers on your paycheck makes it easier for you to meet your obligations, so lenders don't worry about your ability to pay off your loan. They are willing to reward you for that peace of mind with lower rates.
How Auto Protectors Refinance Works
As with any loan application, getting the best auto refinance rates requires lenders to process a bit of information about you. Unlike traditional shopping for auto refinance rates, Auto Protectors collects all this information just once and makes it available to all our partners on the site. You don't have to visit every lender's website or bank branch individually and fill out the same form over and over. The more accurate complete the information you give us about your financial situation and your vehicle, the more precisely Auto Protectors can match your needs with the refinance auto loan providers who can offer you the most attractive terms.
Auto Protectors will return several possible refinancing options. Compare them carefully and select the ones you want to pursue. We will put you in contact with the lenders you select so you can lock in the term, rate, and payment that fits your budget.
Benefits of Refinancing Your Auto Loan
We discussed how searching out the best auto loan refinance rates on Auto Protectors can lead to smaller monthly car payments as a result of lower interest rates. But there are plenty of other reasons to investigate the possibility of refinancing:
- Better Loan Terms - Your original loan may have been stretched out over six years or more in order to keep the payments as low as possible. If you find yourself in better financial straits you could refinance in order to make somewhat larger payments while shaving a year or more off the term. You will end your payments sooner so you can apply that money to paying off other debt, saving or investing it, or treating yourself to something nice.
- Remove a Co-borrower – You may have used a co-borrower (co-signer) on your current loan because your own credit rating or income did not measure up to the lender's standards. Refinancing offers a convenient method for removing your co-borrower, placing a paid-in-full loan on their record. The co-borrower also would have the debt removed from their record, giving him or her a lower debt-to-income ratio. Your record also will show a successfully paid-off loan and continue to fortify your credit rating by making timely payments on the new loan.
- Leverage Equity – You may be able to refinance your car for more than you owe on it, using the excess for some other purpose. Say you owe $4,000 on your car, but it's worth $7,500. If you refinance for $5,000, you could pay off the old loan, have $1,000 in your pocket, and still have some equity in the vehicle. Depending on your priorities and your income, you could also still pay off your refinanced loan at the same time or earlier or face lower monthly payments.
Whatever your reason for seeking the best auto loan refinance rates in the country, you owe it to yourself to try Auto Protectors first. It only takes a couple of minutes to enter your details. And you will be instantly provided with a number of auto refinance rates from the top companies in the industry. There's no obligation, and you only contact the companies you are interested in pursuing.