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Why Should I Refinance with Auto Approve?

Finance | 01/05/2022 23:00

We could all use a little extra cash in our pockets, right? But how exactly can we make that happen, especially when the cost of everything these days seems to just be going up and up? 


Enter refinancing! Refinancing your car loan might just be the answer to your financial quandary. That's why, in this article, we'll be looking at what refinancing is, why you should consider refinancing, and why you should refinance your loan with Auto Approve in particular.


Let’s look at why you should refinance your vehicle with Auto Approve.

What is refinancing?


Before we get into why you should refinance with Auto Approve, we should probably take a look at refinancing itself.


What exactly is refinancing? Refinancing is when you pay off an existing loan with a new loan that ideally has better terms, such as a better interest rate or better payment schedule. You are essentially replacing your existing auto loan with a new loan that will better fit your budget. 


Why should I refinance my loan?

There are lots of reasons that people choose to refinance. Some people want to take advantage of low interest rates, while others want to add a co-borrower or lower their monthly payment. Let’s take a look at some of the top reasons you may want to refinance your auto loan.


Your credit score has improved

If your credit score has increased since you initially took out your vehicle loan, you may qualify for a much lower interest rate (which can translate to saving you a bunch of money). When you apply for a loan, lenders look at a lot of your personal information, including your job, income, and address. But nothing that they look at is more important than your credit score. 


Your credit score indicates how likely a person is to repay their loan. We must remember: lenders are in the business of making money. The last thing they want to do is lend money to someone who is not going to pay them back, or not pay them back on time. A good credit score tells them that you are a good candidate who pays their bills and pays them on time. 


Credit scores are determined by five major factors: 


  1. Payment History. Do you pay your bills on time? 

  2. Accounts Owed. Also called your credit utilization ratio. How much money do you owe vs. how much credit do you have available to you?

  3. Length of Credit History. How long have you had your accounts? 

  4. Credit Mix. Do you have a good mix of retail accounts such as credit cards, loans, and mortgages?

  5. New Credit. Are you opening a bunch of new accounts?


The most important factors are your payment history and your accounts owed. If you have become better at making on time payments or have been able to pay down a considerable amount of your debt, your credit score may have increased dramatically since the last time you financed your vehicle.


Check your credit score and your credit report to see if your score has increased. If it has, you may be eligible for a much better interest rate when you refinance your car loan.


The interest rates are low

When interest rates are low across the board, it’s a good time to think about refinancing. If your interest rate was a bit steep when you first got your car, today’s low interest rates may save you a ton of money. Even if your credit score has remained the same, the prevailing interest rates might still be lower than your original rate. Right now interest rates are low, making it a great time to consider refinancing.


You need help with monthly payments

Maybe your cash flow is a bit tight these days. Your job cut back on your hours, or you had some unexpected expenses pop up. No matter what the reason is, we’ve all had times when we could use a little more breathing room in our budget


Refinancing can help in a few ways. First off, if you can get a lower interest rate, you will pay less in interest every month and ultimately have lower monthly loan payments. 


Additionally you can adjust your payment periods to change the amount you pay per month. If your original payment period was 36 months, refinancing to a 48 month pay period will stretch out your payments over a longer period of time, therefore reducing the monthly amount. You may ultimately spend a bit more overall since you will be paying interest over a longer time period, but this might be worth it depending on your current cash flow situation.


You want to add or remove a co-borrower

If you want to change the ownership of the loan, you must refinance in order to do so. Lenders will not simply add or remove a person from a loan without starting over. This is because every loan decision is made by looking specifically at each borrower’s situation, and changing any of the dynamics will ultimately change the likelihood of repayment (in their eyes, anyway).


Because of this, you must refinance if you want to add your son to your truck loan (he’s always had his eye on it) or you want to remove your ex from your SUV (he can find his own ride, no?).


Why should I use Auto Approve to refinance?

So now we know why refinancing your loan might be a good move for you, but why should you trust Auto Approve?


We take refinancing personally, and our customers love us for it

We know how big of a decision refinancing can be, and that’s why we have a dedicated team to help you. When you get in touch, we give you a real person to talk to – no robots or automated messages when we are dealing with a decision this big. Just read through our reviews to hear how much our customers love working with our dedicated team of professionals. 


“Mitch was great and helped me out through the whole process. Glad I was able to refinance my vehicle with Auto Approve” -Nicholas E


“I spoke with Casey, who was very helpful and patient through the whole process. Auto Approve saved me $100 a month on my car payment and a full percentage point on financing. Thanks for all your help, Casey!” -Kathy


“Payments went down $169 dollars a month along with interest almost cut in half. I couldn't be happier. Peter my rep was AWESOME and was with me through the whole process. Kudos to auto-approve.” -Jonathon S


We work with you personally to ensure you are getting the best rates possible. Whether you are dealing with Shawn, Casey, Jake, Robert, or any of our other financing experts, rest assured you are in good hands.


We are honored to have a 4.7 out of 5 star review on TrustPilot, an A+ rating from the Better Business Bureau, and a 96% would-recommend rating on Lending Tree. 


We have a fast turn-around

Read our reviews and you will see read the same thing over and over again: “I can’t believe how fast it was!” That’s because we value your business and know that your time is important. When you contact us, we get to work immediately contacting lenders and comparing rates for you. When you decide on a refinancing loan that looks good to you, we get the papers together so all you have to do is sign online. We even handle the pesky DMV paperwork. So if you want to skip the headache and the lingering paperwork, contacting Auto Approve is sure to be a good move.


We shop around for deals so you don’t have to

Have you ever shopped around online for deals? Of course you have, so you know how time consuming it can be to compare this to that to that over there. It can be so tedious and we know there’s plenty of other things you would rather be doing. So save yourself the time and frustration and let us shop around so you don’t have to.


We have relationships with lenders so that we can get you quotes fast. We then compile everything for you to look at so making a decision is as easy as possible. 


We never mark up prices

We guarantee no markups and no hidden fees, which is more than we can say for our competitors. Some companies will actually mark up the rates and pocket the difference, but that’s not how we do business. We pride ourselves on being open and honest with our customers, so what you see is what you get. We pass the savings right on to you. 


And that’s why you should refinance your auto loan with Auto Approve.

Whether you’re looking to reduce your monthly payments or add your kid onto your loan to help them build credit, now is a great time to refinance. And with Auto Approve, you are in good hands. From our stellar customer service to our unbeatable prices, we are here to help drivers like you save money.


If you’re thinking about refinancing, contact us today to get started! Getting a quote is free and takes less than five minutes – so what are you waiting for?

GET A QUOTE IN 60 SECONDS

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Should You Rent A Car on Vacation? 5 Things to Consider

Do you need to rent a car on vacation?It’s a complicated question, and there’s no one size fits all answer. However, there are a few important details you can and should take into account if you’re on the fence about renting a car on your next holiday.In this short guide to car rentals for vacation, we’ll look at:Your destinationYour travel planYour travel companionsYour vacation habitsAnd your budgetWith these things considered, you should have a clearer picture of whether or not renting a car is right for your getaway. And hey, remember – this is a good problem to have, it means you’re going on vacation!5 Things That Determine Whether You Need A Car On VacationWhether or not you want to drive on holiday is a personal decision. Ultimately, this choice can affect the kind of trip you have, so choose based on the vacation you want. 1. Where You’re GoingYour destination is a huge factor in deciding whether or not you need a car at all. For example, consider the following:Is it somewhere you’ll need to drive to get around? Is it somewhere with robust public transpo and limited parking? Do they drive on the same side of the road? What are your plans for meals – will you need to buy groceries?If you’re going to an all-inclusive resort, or a major city where parking will be expensive and difficult and public transportation is the standard way of getting around, a car might only slow you down. If you’re renting a ranch in Montana or roadtripping through mountains, you’re almost certainly going to want not just a vehicle, but one that can handle inclement weather and rough terrain.And if you’re going somewhere like Ireland or England where they drive on the other side of the road (or if you’re coming to the U.S. or Canada from, for example, the U.K., India, or Japan), even if having your own transportation might be convenient, you might want to look at buses and trains to lower stress and keep you safe.2. How You’re Getting ThereThere are different considerations for taking a road trip vs. flying somewhere.If you’re taking a road trip, you might consider taking your own car rather than getting a rental. This is certainly cheaper, and if you’re driving somewhere close to home, taking your own car is a perfectly good option. The biggest reasons to rent a vehicle for a road trip are:If your car is old or has limitations that’ll make it uncomfortable or more likely to break downIf you know you’ll need to handle terrain or weather your vehicle isn’t well-suited forIf you’re going somewhere far enough from service stations that a breakdown could mean a major trip interruptionIf you’re driving from Boston to Southern Maine, renting a car feels a little silly – you’re close to home, you’re not changing terrain, and you’ll be surrounded by auto shops the whole time. But if you’re driving from Boston to the Grand Canyon, the idea of getting a broken down car back home becomes a much bigger deal. A rental might be more expensive, but if you’re renting with a national company, it may be easier to simply replace a vehicle in the case of an emergency than wait for one to be fixed when you’re several days’ drive from your home and your destination. Of course, that’ll depend on your breakdown coverage and your rental agreement, so read the fine print on everything carefully as you weigh your options.On the flip side, if you’re flying to your destinations – say you’re off to see the rainforests of Costa Rica – renting a car will likely be your only choice, if all the other factors align and you decide a car is, in fact, necessary.3. Who You’re Going WithBig family? Solo travel? Your adventuring party makes a big difference in your transportation needs. If you’re backpacking on a budget alone across Europe, you might be willing to put up with a lot of minor inconveniences to save money. 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What You Like To Do On VacationAnother thing to think about is the kind of vacationer you are. Some people like to stay close to home, or stick to eating at restaurants and strolling around urban sites. If that’s you, cabs and walking might be more than sufficient for your needs. But for the outdoorsy, those who love beach days, national parks, and driving into the woods, a car can be a must-have. When you picture yourself on vacation, what are you doing? If you prefer to split the difference, you can always rent a car just for a day or two rather than for the whole time, to save money.5. Your BudgetMaybe one of the most important factors in all of this is what works for your wallet. 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A car is not always the right choice for every person and destination. Hopefully, with all of the above in consideration, you’ll be able to figure out the right steps for you and your next trip!Another good next step to take?Finding out how much you could save by refinancing your vehicle with Auto Approve! Most people are paying more than they need to be on their monthly car payment, thanks to dealer markups. If you got your loan through dealership financing, if rates have gone down, or if your credit has gone up, refinancing may be able to save you money both monthly and in the long run with a lower interest rate.Getting a quote only takes a few minutes, no commitment and no hard credit check required.Get your free quote now.

When Should I Refinance A Vehicle?

When should I refinance my vehicle?It’s a common question, and there’s no definitive, one-size-fits-all answer. Instead, it depends on you.The refinancing process can lower your monthly payments and help you get out of debt faster. But should you refinance your vehicle right now? If you're thinking about it, here are some things to consider:Is your auto loan term nearing its end?Are you struggling with high monthly payments?Have interest rates gone down?Has your credit score gone up?Do you want a lower interest rate?If the answer to any of these questions is yes, now may be the best time to refinance your vehicle. Let’s take a closer look.Here’s How You Know When to Refinance Your VehicleConsider these factors to decide when to refinance your car loan.Your Existing LoanWhere and when you got your existing loan – and the details of that loan – are all among the deciding factors in whether you’ll be able to find a better deal. It’s worth noting that, if you got your loan through dealership financing, the odds are very good you could save money by refinancing, as dealerships often add mark ups to their rates.When thinking about whether or not to refinance your car loan, it is important to know the current interest rate and term of your loan. You should consider the amount of time left on your loan and any prepayment penalties.Prepayment penaltiesPrepayment penalties are fees your lender charges you for paying off the loan before it is due. Watch out! Some lenders will not refinance loans that have prepayment penalties attached. That said, even if your current loan has a penalty attached, it may still be worth it for you to refinance. In some cases, you may be able to save more by refinancing than the cost of the penalty. This is especially true if you got a particularly bad rate on your existing loan (which frequently happens when you buy a new car directly from the dealer). Time remainingIf you have several years left on your current auto loan at an unfavorable rate or your existing loan has high fees, refinancing may be the right decision. After all, refinancing your car loan can be a great way to save money on interest and get lower monthly payments.If you refinance your loan to a longer term, you’ll likely be able to lower your monthly payments – but you could end up paying more in interest. On the flip side, if you can refinance at a lower interest rate and at a similar or even shorter loan term, you’ll be able to save money in the long run. (That’s one of the things that makes refinancing so great!)Your Credit ScoreYour credit history is one of the biggest factors in being able to refinance with most lenders. If you have good enough credit, then refinancing your car could save you money.Refinancing can be a great option if you have improved your credit and want lower monthly payments or to get a longer term on your loan. Better credit can also qualify you for a lower rate than you initially received so that you can pay less overall, regardless of whether or not you want a lower monthly payment.The only thing worth noting when it comes to your credit score is that you’ll want to avoid refinancing multiple times, as doing so could hurt your score, and rates usually go up with each refinance. Your Cash FlowMany people are looking for ways to reel in their budgets. If your income has gone down or you want more money in your pocket for added expenses, refinancing your auto loan could make sense for you. Doing so can lower your monthly payments and help save some cash, without having to change or get rid of your vehicle.Refinancing offers tons of potential savings and can be helpful for people who have limited cash flow. For example, if you’re unemployed and need money in your pocket right away, refinancing can lower your monthly payments and even give you the option to take a few months off from making a payment.Before refinancing your car loan, make sure you refinance for the best possible price. Shop around and compare offers before signing any paperwork to make sure you’re saving as much as possible. Unlike the competition, at Auto Approve, we never mark up the rate the bank offers you, so we pass maximum savings on to you. Eligibility For A New LoanHere’s a good question: What makes you eligible to refinance your car? Well, it varies based on the lender, but eligibility can depend on: how old your car ishow many miles you have on ithow much money is left on your loanand other factors If you’re not sure whether you’re eligible to refinance, don’t worry – we can help! Talk to one of our knowledgeable and friendly Auto Approve agents or use our handy online quote form to find out if your vehicle loan qualifies and how much you might be able to save in a jiffy.Interest RatesWith all that out of the way, one of the most important factors you should consider when deciding when you should refinance your car is the broader picture of interest rates.When it comes to interest rates, things have been all over the place in the past several years, with big fluctuations in vehicle prices and rates. Depending on when exactly you financed your vehicle, average rates may be lower or higher now, and your loan-to-value ratio may have shifted..With that in mind, if you’re eligible, it may be a great time to refinance your automobile right now – the only way to know for sure is to check.So, When Should You Refinance a Vehicle?When everything aligns! Many things go into making the decision to refinance your loan, but this article should help you know better what to look for. For many people refinancing can help you save money monthly and pay less over the life of the loan. The good news is, getting a free quote is easy! There’s no commitment or credit check to find out what rates you might be eligible for, and when you decide to refinance, an AutoApprove agent will help make sure you find the best deal for you and then do the paperwork for you, making refinancing quick and easy. So, whether you’re on the fence or ready to dive into refinancing, get your free quote now.

Top 4 Ways to Get a Lower Monthly Car Payment in 2025

How can you get a lower monthly car payment?When money is tight, or you're hoping to make a big purchase, every penny counts. Whether you're trying to save up for something big, looking to put more money where it matters, or cutting back in leaner times, lowering your expenses can help.That means, when you're going through your budget, you may want to figure out where you can save a few dollars. For many people, a car payment is one of the bigger bills they pay each month. If that's the case for you, lowering your car payment could be the answer to your financial challenges.Whether you need a temporary fix or a long term solution, there are tons of great options out there to help you secure a lower monthly car payment.Here are the four best ways to get a lower monthly car payment1. Talk to your lenderLenders are in the business of making money, and they only make money when you make your payments. You may be surprised to learn that many lenders are willing to work with borrowers to help them manage their payments more effectively.They may allow you to skip a payment or lower your payments temporarily. Keep in mind that interest will still accrue during this time, but it is always better to defer and have this accumulate than to have missed payments. Missed payments can trigger late fees and hurt your credit score. You want to avoid the negative credit impacts that will occur without deferment.That said, not all lenders are magnanimous, and they'll rarely want to cut a deal that doesn't benefit them in the end, so while you may be able to skip a payment or lower your monthly cost, you may end up paying more interest in the long run if you go this route.2. Refinance your carRefinancing can lower your monthly car payments in a number of ways and is likely to be your best option to effectively and sustainably reduce your monthly payments. Since refinancing benefits both you and your new lender, it's a win-win – they don't need to make more money than your current lender, so you're more likely to get a deal that'll cost you less overall. Here's how.You can get a lower interest rateOne of the main benefits of refinancing is securing a lower APR. There are several reasons you might be able to get a better interest rate this time around.You didn’t get a good deal on your original loan. If you went in to look for a car and got talked into dealership financing, there's a good chance you got stuck with a higher-than-necessary APR. In this case, refinancing is likely to lower your APR significantly and cut your payments drastically.Interest rates have dropped. Interest rates fluctuate based on how the economy is performing. If you bought your car while rates were high, there’s a good chance you are eligible for a lower APR if you refinance.Your credit score has improved. If your credit has improved since you first bought your car, you are probably eligible for a much lower rate. Your credit score is the most important portion of your application, and an improvement in credit can yield a drastically better interest rate.You can lengthen your repayment periodEven if you are not eligible for a lower interest rate, refinancing can still reduce your monthly payments by changing your repayment schedule. If you lengthen your repayment period (for example, from 36 months to 48 months) your balance will be paid over a longer period of time and your payments will be lower. Keep in mind you will be paying more interest overall, as you will pay interest for 48 months instead of 36 months, but it will drastically reduce your monthly payments.You can add a co-borrowerWhen you refinance, you can add a co-signer to your loan and possibly reduce your interest rate and secure better terms. If your co-borrower has good credit, they will be eligible for a better interest rate. If refinancing sounds like a good option for you, Auto Approve can streamline this process and help you start saving money today. We work as your advocates to get you the best rates possible, then do the paperwork for you..Want to know more about Auto Approve? Click here to find out why Auto Approve is the best way to refinance your auto loan.3. Sell Your CarIf you need a more permanent solution than talking with your lender will provide, and refinancing isn’t an option, you might need to consider a new set of wheels. You can either trade in your car to a dealership or sell the car on your own.Almost all dealerships will accept trade-ins and can put you in a car that will have lower monthly payments. Make sure you talk to the dealership and are upfront about what you can and cannot afford. You can also choose to sell the car privately. This is a bit more work than going to a dealership, but you will probably get more money for your car. If you want to sell your car on your own, be sure to clean your car very well, get good pictures, and make sure maintenance records are up to date. You want to make your car as attractive as possible to increase the amount of money you can make.Whether you sell to a dealership or to a private buyer, be sure to know three things before starting this process:How much you owe. Know how much money is left on your loan balance, and how much you need to sell the car for in order to break even.How much your car is worth. Go to Kelley Blue Book or Edmunds to look up the value of your car. It might be worth more than you think and you don’t want to lose out on money that could be yours.What you’ll do for transportation next. If you plan to replace your current vehicle with a less expensive one, make sure you take time to look at the market and find vehicle options that’ll fit your needs before giving up your car. Vehicle prices have fluctuated drastically over the past 5-10 years and are likely to shift again with changing car tariffs. If you won’t be replacing your vehicle, have a backup plan for how you’ll get around and test it out for a week before making the change.4. Lease a Car InsteadIf you have sold your car but still need to get around, getting a lease instead of purchasing a new car might be a good option. Leases are generally cheaper than buying a new car, as you are only paying for the depreciation that accrues during your use. There are three main leases you can pursue:New Car Lease – This is the most common type of lease and is widely available. You typically need pretty good credit and a down payment to secure a new car lease.Used Car Lease – These are not as common as new leases but they are out there if you do your research. The APR might be a bit higher, but since the car is not worth as much you might have lower payments than if you got a new car lease.Lease Takeover – This occurs when someone wants to get out of their existing lease for one reason or another. Websites like LeaseTrader.com and SwapALease.com provide a space for you to shop around for a lease takeover. Some people who are desperate to get out of their existing leases may even offer cash incentives, making this a good option if money is particularly tight. You will still need to go through an application and credit check, but you can probably secure a nicer car for a lower rate than if you were to get a new car lease.And those are our top tips for lowering your monthly car payment!In times of economic uncertainty, budgeting and saving money is incredibly important. If you are struggling to make ends meet every month, consider one of the options above.And if refinancing seems like the right option for you, or you want to find out just how much refinancing could lower your monthly payment, Auto Approve is here for you. All it takes is a few clicks and to get a quote and get on your way to more money in your pocket and less on your vehicle payments.GET A QUOTE IN 60 SECONDS
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*APR and Fees Disclosure: Auto Approve works to find you the best Annual Percentage Rate (APR), which is based on factors like your credit history, vehicle and desired payment terms. Fees to complete your loan refinance vary by state and lender; they generally include admin fees, doc fees, DMV and title. Advertised 5.49% APR based on: 2019 model year or newer vehicle, 730 minimum FICO credit score, and loan term up to 72 months. All loans subject to credit and lender approval.
Auto Approve has an A+ rating with the BBB and is located at 5775 Wayzata Blvd, Suite 700 #3327 St. Louis Park, MN 55416-1233. Auto Approve works to find its customers the best terms and APR, which are based on factors like credit history, vehicle, and desired payment terms. Loan amounts, costs, and fees vary by state and lender; they generally include admin fees, doc fees, DMV, and title fees, depending on the lender and period of repayment. There is no fee to obtain a quote and all refinancing-related costs are included in the amount financed so there are no out-of-pocket costs! For more information, please go to AutoApprove.com.