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Is Auto Approve a Direct Lender?

Finance | 12/29/2022 00:00

Maybe you’ve seen ads for Auto Approve and read the reviews, but you’re still unsure of how refinancing works through Auto Approve. Is Auto Approve a direct lender? If not, how do they fit into the refinancing process?


Today we are here to answer the most common questions we get about Auto Approve, including how Auto Approve can help make the refinancing process as easy as possible.


Here’s what you need to know about refinancing your car loan with Auto Approve.

lending cash for car loan


What are the benefits of refinancing?


Car loan refinancing is when you replace your existing car loan with a new car loan that has better terms and conditions. When you refinance your car loan your new loan will pay off your old loan and you will be responsible for making payments to your new lender.


There are a lot of benefits to refinancing your car loan, but the main reason is to save money.


You can save money by finding a lower car loan APR.

The primary reason people choose to refinance their car loan is to save money. When you refinance your car loan you can apply for a lower car loan APR, which you may qualify for for several reasons. If any of the following apply to you, there is a good chance you will find a lower car loan APR by refinancing:

  • Your credit score has improved since you initially financed.

  • The market rates have decreased since your initial financing.

  • Your debt to income ratio has improved since your initial financing.

  • You have a cosigner with a great credit score.


An improved credit score will have the greatest effect on the car loan APR that you are offered. An improvement of ten or twenty points can add up to several hundreds of dollars in savings. If you are thinking about refinancing, be sure to work on improving your credit score before you apply.


You can save money by shortening your repayment period.

Even if you don’t qualify for a lower car loan APR, shortening your repayment period can add up to a lot in savings. Reducing your repayment period from 48 months to 36 months means that you will save on 12 months of interest payments.  You cannot simply amend your existing loan contract, so refinancing is a great way to shorten this period. If you can qualify for a lower car loan APR in conjunction with shortening your repayment, this can equal big savings.


You can give yourself breathing room in your monthly budget by extending your repayment period.

If you are currently having trouble making ends meet every month, refinancing your car loan and extending your car loan repayment period can significantly reduce your monthly payment. Lengthening your repayment period from 36 months to 48 months gives you another 12 months to stretch your payments, which can easily reduce your monthly payment by hundreds. It is important to note that you will pay more money in interest over the life of the loan, but this might easily be worth it if it's causing you to fall behind on all of your monthly payments (which can really hurt your credit score).


You can add or remove a cosigner.

If your original loan had a cosigner, the only way to remove the cosigner is to refinance your loan and not include them in the new loan. Perhaps your relationship with your cosigner ended, or maybe you just don’t want the financial tie to them anymore. Whatever the reason is, refinancing is the only way to go about removing a cosigner.

If you want to add a cosigner to your loan you will also need to refinance. If your friend or loved one has a good credit score they can help you secure a better car loan APR. You may also choose to add a loved one onto your loan to help improve their credit score. Again, the only way to do this is to refinance your car loan.


You can get out of a bad relationship with your current lender.

You may also choose to refinance simply to get out of your relationship with your existing lender. If your current lender is not working for you (communication issues, recording discrepancies, etc) it may be a good idea to simply cut ties and start over with a new loan. 

signing a car loan agreement with lender

Is Auto Approve a direct lender? How does the Auto Approve loan process work?

Auto Approve is not a direct lender. Instead, we work to match you with the best car refinancing loan for you and your situation. We have relationships with lenders across the country and can help you shop around for the best rates and terms possible. 


Refinancing with Auto Approve is simple. You start by filling out our online quote form (you don’t even need to enter your social security number). We will review your basic information to determine whether or not you are eligible for a refinance. Eligibility will vary from lender to lender, but if your car is too old (ten years or older) or you do not have enough money or time left on your loan, we can quickly let you know that refinancing is not right for you.


But if you are like most people out there, you are probably overpaying on your car loan and you are most likely eligible for refinancing. When we determine your eligibility, we will start shopping around to find the best rates and terms for you. You will work with one of our agents to gather all of the necessary documents for your applications. You will need the following information and documents:

  • Driver’s license

  • Current registration

  • Proof of insurance

  • Pay stubs or other proof of income

  • Current loan details


When we compile all of this information we can help you fill out your applications and determine which lender is right for you. When you decide which loan offer to accept, we will help finalize the paperwork, ensure that your old loan gets paid off, and even help you with that pesky DMV paperwork. Once the final signatures are complete, you’re done! You will start making payments on your new loan, and when your loan is paid off your new lender will send you the title. 


While not a direct lender, Auto Approve serves a different but important role in your refinance. Think of us as your good friend who keeps an eye out for you (and your pocketbook).


car loan refinancing approval

Why should you refinance your car loan with Auto Approve?


We’ve been over the benefits of refinancing your car loan, but why should you use Auto Approve? Can’t you just refinance your loan with the same lender?


While you can shop around for loans on your own (and even refinance with the same lender), using Auto Approve has a lot of benefits. 


We have unbeatable customer service.

When you refinance with Auto Approve you can work with an agent (a real human agent!) who will give you the guidance and support that you need. But don’t just take our word for it. We have a 96% would-recommend rating on LendingTree and a 4.7 out of 5 star rating on TrustPilot (based on over 6500 reviews!). Just look through some of the comments to see how much people love working with our agents. Trying to navigate auto refinance can be confusing if you do not have an advocate like Auto Approve on your side.


We can find you the best rates.

Refinancing car loans is our specialty, so we know how to get you the best rates possible. Again, just read through our reviews to see just how much money we save people (and how much lower we got their car loan APRs!) Our relationships with lenders make it easy for us to shop around to a wider audience and determine which lenders will be the best for you before we even start applying. And by helping you through the application process we can make it streamlined and easy.


You can bundle a vehicle protection plan.

When you refinance with Auto Approve you can easily add on a vehicle protection plan that can help when life becomes a little bumpy. When your factory warranty runs out a vehicle protection plan can step in and provide coverage against the wear and tears that come with, well, driving. Our vehicle protection plans allow you to choose your own mechanic, give you courtesy towing when you need it the most, and offer 24/7 roadside assistance. Bundling a vehicle protection plan to your new loan will give you peace of mind for years to come.


And that’s what you need to know about refinancing with Auto Approve!


Auto Approve is not a direct lender, but we can help pair you with the perfect direct lender for you. Our agents take the guesswork out of refinancing and act as your advocate so that refinancing is easy and pain free. If car loan refinancing sounds like it might be a good fit for you, get in touch with us today! 


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

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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. 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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. 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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! 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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.