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Knowing
When
to Refinance
Your Auto
Loan |
Many consumers find the need
to refinance their auto loan because they purchased
their car with bad credit or the market interest rates
were higher than they currently are.
You’ll need to review your auto loan and
see if refinancing is the best
option for you.
How many months do you have left on your loan? What
is your current interest rate? Knowing your
existing situation is critical when determining if
you should revise it to work better
in your favor.
You might not be able to
refinance your loan if your lender added a clause that
penalizes you if you pay your loan off early. Even
though you are refinancing, that means your existing
loan is paid off – which could result in a lump sum of
money owed to your lender.
If you purchased your car on bad credit, make sure your
credit or monthly income has vastly improved
since you bought the car. If there’s
not much change, it might not be
worth the effort.
If your lender doesn’t
penalize you, your situation
has improved, and
you have more than one year left on your loan, you’re
a good candidate for auto refinancing! You
can either work with your current lender
or find another bank or credit union
to work with.
Before you sign on the
dotted line, check for hidden fees. Make sure the
lender isn’t lowering
your interest rate,
but having you pay your loan over a longer period of
time. This would mean a higher total
loan – not a wise choice for
a consumer looking to save money in
the long run.
You have to
weigh the importance
of whether or not you want to save money each month
or over the entire length of the
loan. Don’t be afraid t shop around
and negotiate for the loan that fits
your needs best.
© 2004 - All Rights Reserved. Apex Personal Loans
Store does not assume any responsibility for the
accuracy or completeness of the above article. Please
consult a financial advisor for specific advice
pertaining to your particular situation.
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