Are you the kind of person that gets really nervous when they are sitting across the table from a loan officer? Well, the goal of this article is to give you a few tips that you can keep in mind to make your car loan refinancing experience a good and productive one.

1- Make the Refinance Worth It

What is the magic point where the cost of refinancing your car loan will be more than the benefits? You need to know where that point is. In the end it will depend on how much you’re currently paying and what you new payments will be. But generally speaking if you owe less than $7500 you probably shouldn’t bother. In fact, there’s a chance that the lender will not even want to do it unless the loan will be worth more than that.

2- Keep Information Consistent

This may sound like a simple thing, but you’ll run into fewer problems if you remember this: the information on your new loan has to match the information on your old loan. Keep the same spelling of your name and everything else. So if you go by Dan normally but put Daniel on your previous loan, make sure to put Daniel on the new loan as well. This is to avoid computer errors and other problems that could come from that.

3- Value of the Loan

Keep in mind that the amount of the loan should not increase, and it definitely shouldn’t be worth more than the current sale value of the car. Many car loan refinancing lenders won’t let you take out more than the car could sell for, so do your homework on this beforehand.

4- Accurate Information

This one should be obvious, but you’ll want to make sure that all the information you have on the vehicle is accurate and up to date. The lender will want to check the value of the car to make sure that it fits what I mentioned in tip #3.

5- Watch Interest and Fee Rates

Don’t forget that the whole point of car loan refinancing is to save money. So when you see your new interest rate, fees, and the new monthly payment you need to make sure that you’re actually saving money. The amount of savings will of course depend on the size of the loan, but you should be able to save at least a couple hundred dollars a month by doing car loan refinancing.

By: Brenden Mitchell

Are you looking into buying a car? Or refinancing an existing car loan? This article is an excellent starting point of your research. Lets roll …

You should begin by requesting your credit report and FICO score. These two in combination will give you an idea of how lenders view you. This helps answer the simple question ‘Credit-worthy or not?’. The higher your creditworthiness, the better interest rate you will get on your loan.

Its best to request copies from all three major credit bureaus. This is because you never know which report is favored by a lender. Also, this will help iron out any inconsistencies in these reports early in the process.

1) Equifax: PO Box 740241, Atlanta, GA 30374; http://www.equifax.com

2) Experian: PO Box 2002, Allen TX 75013, http://www.experian.com

3) TransUnion: PO Box 2000, Chester, PA 19022; http://www.transunion.com

The next thing to do is figure out the numbers that make sense for your situation. There are times when a 0% loan is on offer by the dealer. This is enticing in comparison to a 5% interest rate or higher. Before you jump on the deal, take another look at the offer. You could be in a better financial position by capitalizing on a cash rebate instead.

This will be clearer with an example of your monthly payment calculation.

In the event that you get a 36-month loan at 4% with a $2000 rebate, your payments (monthly) will be $30 lower. You would also save a little ove $1100 over the cost of the 0% loan. Always run the numbers. If you are a little math-phobic that’s okay. Use one of the many online loan calculators available.

Before you go car shopping, you should make arrangements for the financing. This approach has a number of advantages. This will help figure out your budget and how much the monthly payments you will have to make for a loan amount.

One point that people often overlook is that you have a advantage while negotiating the price with the dealer if you will get approved for the loan or not. Fairly often the dealer will take you up on the lower price if their financing offer is acceptable to you. As mentioned earlier, do the numbers before you go car shopping.

One tip regarding accepting dealer financing. If you think the offer is within your price range you can accept it. But nothing prevents you from refinancing the day after. There are costs associated with refinancing a loan. So, do take those into consideration when doing the math.

One added benefit of having researched financing options is advance is your increased ability in weeding out the bad deals. Sometimes you will get different offers on virtually identical cars at different dealerships. Since you have run through different numbers before you will be able to compare deals easily. Of course, do factor in the service you will receive post-purchase in your final buying decision.

Lastly, look at the advantages and disadvantages of leasing versus getting loan or even some other form of financing. For instance if you own your own place, a home equity loan or line of credit could give you access to cash at lower rates of interest.

In the beginning this may seem like a lot of work. But as you get more experience you will get more creative in your financing options being fully aware which ones save you the most money.

By: Mike Singh

If you have been thinking about the possibility of refinancing a loan on your car, good for you. You have taken a logical first step towards possibly saving some money; maybe a lot of money. There are many benefits to refinancing car loans. You may be able to bring down your monthly payments significantly, and you may also be able to lengthen or shorten the term of payments. It all depends on your personal financial situation.

It may be a good idea to refinance if there has been a significant drop in interest rates. You will see that your monthly car payments will lower, and it may be worth the extra trouble of applying for that loan. It is also beneficial if you have had a change for the better in your employment, or if your credit rating has improved. You will probably be able to secure a better loan, and save money in the process.

You can go through the traditional banking method and talk to a bank manager about refinancing arrangements. If they can see a rise in your credit score, they may be willing to work with you. You can also arrange a loan through an online banking institution and see what the rates are there. Quite often, getting a loan through the Internet can be cheaper than getting one offline. Another benefit of doing it online is the convenience. You will be able to apply to various places and get different quotes faster than by running around town to every bank.

Saving money on monthly payments is the goal. If you are wise, you can use the money you save in monthly car payments to pay off the loan faster, and save even more by reducing the interest payments. You will also be establishing yourself as a solid citizen that respects financial deadlines and commitments. This can pay off in a big way when it is time to apply for a mortgage.

The benefits of refinancing car loans are numerous. The interest rates that you have adapted to may not be the best you can get. To find out if it would be of personal benefit to you, try applying for a loan and see what kind of rate you can get. You might find yourself presently surprised!

By: Anthony Chambers