Why Car Loan Refinancing Has Become More Popular?
Have you ever thought about refinancing your current car loan? In the past few years, automotive refinancing has become more and more popular – especially as the interest rates that independent used car dealers and even new car dealerships charge continue to go up. There is something you can do about it. You can decide to stop these higher payments now and opt for car refinance to bring your payments down. After reading this article, you may be interested in automobile refinancing for a new car that you have just purchased recently, or auto refinance for a used car.
There a few reasons why someone may want to refinance their auto loan. First, depending on your financial situation when you first applied for a car loan, you may have taken a “no credit” or “bad credit” Car Financing at a very high interest rate. If you have made on-time payments since, and possibly have other good credit marks from other companies (credit cards, mortgage, utilities, and others that report to the three major credit agencies – Equifax, Trans Union, and Experian), then regardless of your previous bad credit history, an auto refinancing loan can probably get you a much lower rate than you are paying now. In this way, diligent payments and hard work to clean up or create a good credit history to start with will pay off by giving you a much more affordable payment now.
Another reason why some people may be in the market for car loan refinancing may be that they had made a mistake when purchasing their vehicle to start with. Maybe a high-pressure salesman put them in a new car that is far too expensive for their current income. (This can happen easily and it is why it is a good reason to have the car in mind that you want to buy before you go to the dealer’s lot.) Or, because of poor credit, an auto loan with a very high interest rate was given. Often dealerships will take advantage of people in these circumstances and try to give them the highest interest rate possible, sometimes more than 25%! As people are pressured to make a decision on the spot, many times they take the bad loan to be able to drive away immediately, only to be sorry after they see how much the high payments will really impact their lifestyle.
If someone has good credit and they are looking for the lowest rate, Car Financing is a simple matter. There are many companies to choose from and most can offer you a much lower rate than you are paying now. However, you absolutely can also refinance a car with poor credit. Auto refinance with bankruptcy or repossession, while it can be a challenge, is possible and there are many companies out there to work with. Online car refinance lenders are typically able to help most people out of their bad credit car loans and into an auto refinance loan that more adequately matches their needs.
Watch the video related
How to get a bad credit auto loan in the USA and Canada. Car loans for bad credit from Auto Credit Express
Help answer the question
What happens to an existing car loan if I were to buy another car?
What happens to an existing car loan if I were to buy another car?
I bought a car in 2003 and owe about $8000 on it but am thinking of buying a new one. What will happen to my existing loan if I were to buy a new car? I would still owe that right? Would they just add that amount to a new loan amount? I'm confused about how this works. Please help!
car loan
Tags: advance, Automotive Loans, bad credit, Car Loan, Guaranteed Car Finance, New Car Loans, Student Car Loan, Used Car Finance, Used Car Loan
This entry was posted on Friday, September 18th, 2009 at 5:07 am and is filed under Loan. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
September 18th, 2009 at 5:42 am
Some banks pre-approve you for a certain amout and the dealer works with that bank directly; not too many banks give you a blank check with a certain cap off amount. Stick to your bank, dealers always want you to sign up with their banks, i think you end up paying for more. When you walk up to a dealer pre-approved for a certain amount, its like walking in with cash so you can negotiate since they dont have to pre approve you. Go to a Credit Union they have better interest rates than banks do. Good luck.
September 18th, 2009 at 6:41 am
Your score is now 6!
September 18th, 2009 at 6:46 am
Please!…. If you buy from an auction the vehicles have NO warranty and there are sold in AS IS condition. If you have bad credit, call up your local dealership tell them what you want, how much you can afford per month and they have lots of financial avenues to assist individuals with bad credit.
Americredit is very large and help people get re-established credit wise.
September 18th, 2009 at 6:55 am
Great video to show folks exactly what they need to do….
September 18th, 2009 at 4:32 pm
Sounds like a great deal, and is not that uncommon. Paying off the outstanding balance on a repo can only help your credit.
HOWEVER, GET IT IN WRITING! Before you send that $2,800 payment, make them put it in writing that $2,800 will settle the debt and they will report it as PAID IN FULL. If they don't put it in writing for you, then after you pay $2,800 they'll say your balance is $5,200! (5000-2800) Collection companies are snakes!
Good luck!
September 18th, 2009 at 6:30 pm
Car loans are simple interest, meaning that for the first half of the loan, you will pay more interest than principal. Your first year of payments will barely scratch your balance owed. After you reach the middle of the loan, then you start to pay down more of the principal balance than interest.
If you trade your car, you will carry all that negative equity into your next car loan, and the next car you buy will also depreciate. This is why leasing is usually a far better option than purchasing if you only keep cars for a max of 3 years. Good luck and you can email with questions.
Here is a small graph of a simple interest loan
http://www.theautoevaluator.net/Resources.html
September 18th, 2009 at 9:27 pm
i wanted to thank you from the bottom of my heart, for getting my application to the right people, i was able to get the car of my dreams, and i am so very happy and again i thank you with all my sole and i hope that you can continue helping people like me!!!
September 19th, 2009 at 5:08 am
You probably be able to buy the car if you put the $5K down. You wont be able to buy a car w/o any down payment. Since this probably is your first time buying a car. Paying rent and utilities dont really mean much to your credit score unless you are late on them. You still will be stuck with a high APR unless you go through a bank. Other than that make sure you are buying a car thats under $20K.
September 19th, 2009 at 6:14 am
Assuming the car is in your name, being one of the co-applicants, you'd have to deal with settling the loan. It's best to talk to a bankruptcy lawyer on this. But as fas far as I know, it's best to have some kind of insurance on this loan that will keep the monthly payments flowing come what may. If nothing works and the bank has it's way, it's within its rights to repossess the car.
September 20th, 2009 at 9:20 am
Dear Vida,
It would depend on what you agree to do with the Escape. If you're trading it in to the dealership on the Edge, then paying off the old loan would be part of the agreement you have with them if that's what you need done. The loan on the Escape needs to be paid if you do trade it in, either by you or by the dealership though. So, for example, using round numbers, if you purchase the new vehicle for $20000 and the dealership gives you $10,000 for the trade-in, you would have a $10,000 difference between the two. After paying off the loan on the old vehicle you would need to get a loan on the new vehicle for $16,500 plus taxes and fees, less any downpayment you would put toward the purchase. Go to http://quick-and-easy-auto-loan-usa.blogspot.com/ they have better interest rates than banks do.
Hope this helps.
Shonda
September 20th, 2009 at 5:39 pm
Hi,
If you want a mini car just put down half and get a personal loan through http://quick-and-easy-auto-loan-usa.blogspot.com/ they have better interest rates than banks do.
Good Luck,
Indira
September 20th, 2009 at 7:10 pm
They will add the difference of the cars trade-in value and the amount owed to the new loan. This will make you upside down in a big way in your new loan. Here's the math:
Amount owed: $8000
trade-in value: $5000
================
Difference $3000
New car: $15,000
+ diff : $3,000
===============
New loan: $18,000
In no time at all, your $15000 car will be worth $12,000 due to depreciation, and you'll still owe $18000. This leaves you upside down by $6k, and will make it even harder to sell or trade the new car in the future.
You can use this site to compare many car loan interest rate at your state
http://quick-and-easy-auto-loan-usa.blogspot.com/
September 21st, 2009 at 12:09 am
Thank You For The Info