Lower Your Payments or Free Up Some Cash With a Refinancing of Your Auto Loan
What are the benefits of refinancing your automobile loan?
Here are the two major reasons why people refinance their car/truck loan:
1) To lower their monthly payments
2) To free up some cash to help pay bills
In some cases, people will be locked in to a very high rate of interest on their automobile loan. If you find a company that is willing to refinance your auto loan at a lower rate, then refinancing your car loan is a no-brainer.
Let's say, for instance, that you have $15,000 left on your car loan at an annual interest rate of 18%. Let's say that you find a company that is willing to refinance the $15,000 at 8%. Even with the costs of the refinancing, you are going to come out way ahead in this scenario, and a refinancing is an obvious choice.
Let's say that you need some cash to consolidate your expensive credit card bills. You currently have $10,000 left on your auto loan, and your car is worth $30,000.
A refinancing company offers you $20,000 at a decent rate of interest. They also offer you the same monthly payments.
Your loan term is longer, but now you will have the money to pay off your expensive credit card bills and get your head above water. Credit card interest is a real killer, and using an asset (such as your car) to consolidate your bills is usually a very smart move.
When people think of "refinancing", they normally think of refinancing a home. A car is an asset as well, and you can certainly choose to refinance an auto loan just like you would refinance a home loan.
Refinancing your car is quick and easy. Simply click on the link below, enter a few details (won't take more than five minutes) and you will be immediately shown quotes from competing lenders. There is absolutely no obligation.