Blog Post by outsidesonia - 10/04/2018 11:45:46pm
Refinancing your auto loan online can be a smart way to meet your monthly budget goals, save money, and even improve your credit score. Done right, it’s like earning a free vacation. We’ll show you how to refinance your car loan online now.
or all 3.
Amanda owed $26,758 on her auto loan, with an 8% APR and 48 months left to go. Since she took out her car loan, Amanda’s credit has improved (yay!).
Lower Interest Rate: Amanda’s monthly payment drops $25.
By refinancing her car loan, Amanda lowered her APR to 6%. Amanda’s auto dealer could have offered her a 6.5% APR on her original loan, but marked up the loan by 1.5% (without telling Amanda – that’s legal!). Amanda’s hard work to improve her credit saved her another 0.5%. The result? Amanda’s monthly payment dropped by $25 and she saved $1,190 in interest over the life of her loan.
Skip A Payment: Amanda skipped her monthly payment.
The first payment on Amanda’s new loan was not due for 45 days, which is typical for an auto refinance . Skipping that payment allowed Amanda to pay off $500 in credit card debt with a 24% APR.
Extended Loan Term: Amanda’s monthly payment drops $116.
Imagine if instead Amanda had extended her 48 month loan to a 60 month term, with a 7.5% APR thanks to her improved credit. Her monthly payment would have dropped by $116. Even though she would be paying the loan off for longer, her stress levels would decline instantly with a more manageable monthly budget.
Refinancing your car loan online can improve your overall financial health. Here are some ideas:
We never focus only on monthly payments when arranging or refinancing an auto loan. Your APR is critical: the lower, the better.