There are a lot of reasons why refinancing your car loan is a good idea. From saving you money to allowing you to change your repayment schedule, chances are you can benefit from refinancing with the right company.
Here are the top 5 reasons you should refinance your vehicle with Auto Approve.
It can save you a lot of money.
The main reason you should refinance your car loan is simple: it can save you A LOT of money. When you refinance your loan, you are essentially paying off your existing loan with a new loan that has new terms and a new APR. Let’s be honest, you are probably overpaying every month on your car loan. But if you refinance to a lower car loan APR, you can start saving immediately.
There are a few reasons why you might qualify for a lower car loan APR:
- Your credit score has increased since your initial financing.
- The market rates have decreased since your initial financing.
- Your debt to income ratio has decreased since your initial financing.
- You have a cosigner who has great credit.
If any of these apply to you, you will most likely be able to find a lower car loan APR, and that translates to extra money in your pocket.
At Auto Approve we can secure you the lowest rates around, with car loan APRs starting at just 2.94%. Let’s look at exactly how much money that can save you.
Let’s say you have a car loan for $30,000 that you financed at 5.5% for 4 years. At the time you thought this was a great interest rate, as it was the lowest rate that came across your email. Your monthly payments were $697.69 and you were going to end up paying a total of $3,489.12 in interest over the life of the loan.
But then you reached out to Auto Approve to see if they could do any better, and they were able to secure you a rate of 2.94% for the same 4 years. Now your monthly payments are $663.23 and you will end up paying a total of $1,835 in interest over 4 years. That’s a difference of over $1600.
It can help you change your monthly payments.
Refinancing can also allow you to change your repayment plan. You can either lengthen your repayment plan or shorten it depending on your situation.
Lengthening your repayment plan is a good idea if you are having trouble making your monthly payments. By stretching out your payments over a longer period, you can cut your monthly bill by hundreds of dollars and give yourself some much needed breathing room. You will pay more in interest overall, but that might be worth it if your monthly budget is stretched.
Shortening your repayment period can help reduce the total amount you will pay on your loan. When you opt for a shorter repayment period you will:
- most likely be offered an even lower car loan APR
- pay interest over a shorter period of time, meaning you are saving in total interest paid
Depending on your finances, one of these options might be perfect for you. You are not able to simply change your current loan terms, so refinancing your car loan is the best option you have available to you.
You can add or drop a co-borrower.
Your car loan is explicit as to who the car–and the loan–belongs to. If you want to add or remove someone from the loan, you will need to refinance. Every loan decision is made by looking at the applicant’s finances, and adding or removing someone from this will affect the possibility of repayment (at least that’s what the lenders think). So if you want to add or drop a co-borrower, refinancing your car loan is the best way to do so.
Our customers love us.
With Auto Approve you know you are in good hands. We have a team of dedicated experts who know how to guide you through the refinancing process. Everyday we get more and more five star reviews from customers who have saved money the easy way by refinancing. Just check out our rankings:
- A+ rating with BBB
- 96% would-recommend rating on LendingTree
- 4.7 out of 5 stars on TrustPilot (based on over 5,000 reviews!)
Here are just a few of our most recent reviews:
“I was really impressed with how fast they found a refinance company for us. They lowered our payment by $97 a month and [...] they dropped our interest rate by 5 1/2 percent. Easy online process. Highly recommended.” -Mary W, 9.18.22
“I had a very informative and helpful experience during the refinance process with Mike. He explained every step and was very patient with my limited free time due to my time demanding job. He was always courteous and stuck with me during the entire process that I’m sure I caused to be longer than it normally takes. Thanks so much to Mike and the entire team!” -Richard S. 8.29.22
“The people at auto approve were very quick at helping me out on my refinance. All it took was about a 15 minute call and 10 minutes later they already found me a bank. I would definitely recommend Auto Approve to anyone out there. Very excellent team and super quick at responding to your questions.” -Travis, 8.28.22
We shop around so you don’t have to.
One of the most time consuming parts of refinancing is shopping around for offers. After all, if the point of refinancing is to save money, you want to shop around to see who will actually save you money. You should aim to apply to 3-5 lenders, but you should research at least 10-15 to make sure you are applying to the right ones. This is not only time consuming, but it can be overwhelming.
At Auto Approve, we have relationships with lenders across the country. From traditional banks to credit unions to online lenders, we guarantee we will find you the best loan possible. We streamline the application process so that it’s quick, easy, and gets you hassle-free offers.
Those are the top 5 reasons you should refinance your vehicle with Auto Approve.
If you think you are overpaying on your car payments (again, you probably are!) then don’t wait any longer. Contact Auto Approve today to start saving money! It’s quick, easy, and effective–so what are you waiting for?