Reduce Your Monthly Expenses
For most people, an auto loan payment is their second largest expense each month, right after their mortgage or rent payment. If you are looking for a simple way to reduce your monthly expenses you should consider refinancing your auto loan. Refinancing doesn’t always make sense for everyone, so here are a few questions you should consider before moving forward.
1. Has your credit score improved since you started your current loan?
Even if you are a year or two into your auto loan payments, and your credit score has improved, you should consider refinancing. A higher credit score can help you get a much lower interest rate and overall reduce your monthly auto expenses.
2. Did you get your auto loan at the dealership where you purchased your car?
It is easy to get caught up in the excitement of buying a new vehicle and you may have been encouraged to close the deal quickly. While the dealership may have given you a great deal on the car, the financing may not be the very best you can get. You should consider refinancing and the possibility of a much lower interest rate that will save you money over the life of the loan.
3. Have interest rates dropped since you bought your car?
Interest rates change from year to year and a big drop in rates can have a significant impact on the monthly payment of your automobile. If you have had your current auto loan for a year or two, it is likely that rates are much different and that you are missing out on the opportunity to save money.
Apply for an Auto Loan Refinance
*This material is for educational purposes only and is not intended to provide specific recommendations for an individual.