Is Auto Approve a Direct Lender?
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.
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.
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).
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!