This article is one of a broader series to deliver tips and trends from around the Automobile industry to potential car buyers across the country and is presented by Chase Auto Finance.
Susan Bassett wanted to do auto refinance to escape from higher interest rates on her auto loan. This Long Island, New York, resident shares her experience when she received many refinance offers. She remembers getting offers from lenders wanting to extend her loan term to give her lower monthly car payments but couldn’t lower interest rates. In the end, she did get a lower interest rate from a lender requiring only one more extra payment. She says, “It was easier to accept because I was preapproved.” Susan could reduce her current monthly car payments of $ 520 to $ 400.
Most homeowners are aware they can refinance a mortgage to save significant money every month. But car owner, car drivers fail to realize auto refinance can help them achieve the same benefits on their monthly car payments too. If you drive a car, SUV or truck, has it occurred to you that auto refinance is a viable option to lower your monthly expenditure?
According to Jim Manelis, head of Chase’s Auto Direct business, 15 million U.S. households have auto loans. He further adds that majority of them do not know about the possibilities of auto refinance through their banks for a better auto loan deal.
Consider some of the following if you are attracted to the idea of auto loan refinance:
Top reasons to refinance
- Lower interest rates – interest rates can be lower depending on marketplace for the car owner, car drivers whose credit scores have improved significantly since they bought their car.
- Consolidation – have all your loan payments at one place, either bank or lender. You can use good services easily from your local banker.
- Restructure – grab a chance to change auto loan features in your favor. Lower monthly car payments and or spread repayment schedule over more months.
- Caution – you may get a reduced APR but a long term will make you pay interest longer. Total auto loan costs soar.
Is refinancing right for you?
Auto refinance may be right for you if:
- You have better or improved credit scores
- Major part of current auto loan term is remaining
- You drive less and have lower than average mileage
- Current interest rates are too high or unaffordable
- Bank is willing to offer benefits of additional relationship rate discount
Here’s how refinancing works
- Apply for auto refinance with a good bank such as Chase or another lender. Keep all information on current auto loan and vehicle ready.
- They review credit history, verify income and appraise marketplace value of the vehicle. This data will decide whether you are approved or denied.
- Bank or lender contacts you when you are approved. Provide details of new interest rates and monthly payments.
- If new auto loan terms and monthly car payments are satisfactory, sign paperwork.
- Bank or lender representatives work with you through a simplified application to an approval process.