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If you are wondering how to get out of a car lease early, there are three main options to consider: transfer the lease, return the car, or buy the car.Which you choose will depend on the details of your lease, the vehicle, and your finances.Read on to learn about each option, how it works, and why someone might choose or avoid it.Ending Your Car Lease Early: The Complete GuideIn this article, we’ll look at:Reasons to end a car lease earlyTransferring a car leaseWays to terminate your car lease Considerations for buying out a leaseWhat you need to know to get a lease buyout loanWhy end a car lease early?There are a number of reasons why you might want to get out of your car lease early. For example: You just lost your job, and the payments are too much to keep upThe vehicle you leased isn’t fitting your needs anymoreYou want to be done with leasing and simply own your car outrightYou’re worried about excess mileage feesThese are all valid reasons, and they’re not the only reasons. Plans change, things happen, and unexpected events can throw us totally off-course from what we thought we needed in our daily lives. When it comes to the terms of your auto agreement, a lease might have seemed like a good solution at one point; yet, due to circumstances out of your control, being in a car lease no longer makes sense for you.Fortunately, tons of people find themselves in a similar predicament each year, which is why it’s not uncommon to want to learn how to get out of a car lease contract early.Still confused? Here are a couple frequently asked questions about reasons to end your car lease before it’s up.What are excess mileage fees?When you get a lease, it often includes a maximum number of miles you’re allowed to drive per year. If you stay under that mileage, some lenders will give a small refund for preserving the car. If you go over it, however, you’ll get charged a fee per mile, payable at the end of the lease. This is because the mileage affects the value and wear and tear of the car.For example, let’s say you had a 3 year lease with a maximum annual mileage of 12,000 miles at a rate of $0.25 per mile over the limit, and you average 14,000 miles per year.You would be 2,000 miles over every year for three years, so you would owe:(2,000 x 3) x $0.25 = $1,500.00$1,500 at the end of the lease. It can really add up!Many people buy out their leases to avoid these excess mileage fees. That’s been especially true in the past several years, since used car values increased during the pandemic and have stayed elevated. This may make your current vehicle’s value higher than the dealer thought it would be at the time the lease was signed.Is it a good idea to get out of a car lease prematurely?That really depends on your unique situation. In many cases, people choose it because they feel they have no other choice. Figuring out how to get out of a car lease agreement early can be a costly and lengthy process. However, if the cons of staying in your lease outweigh the costs and challenges of getting rid of it, then it makes sense to stay the course.If you have decided that you need to make a move and get out of your lease, make sure you really take time to weigh your options, and don’t agree to anything without hearing the final numbers on what you’ll owe or receive. Don’t be afraid to demand hard numbers from your leasing company: it’s a service they owe you as your lessee. So, with all that under consideration, how do you get out of a car lease early?Options for ending a car lease earlyThe short version is, you can do one of three things:Return your vehicleTransfer your leaseBuy your vehicleLet’s break down each option.Return your vehicleThe simplest way to get out of a lease early is to terminate the lease agreement and return the car. However, this is also often the most costly option. When you terminate a lease early, you may be responsible for all or some of the following expenses:early lease termination feeremaining payments on your vehicleany costs related to resaletaxes associated with leasingnegative equity between your lease and the current market valuestorage and transportation of your vehicleSince a car’s value typically depreciates more upfront, the earlier you terminate the lease, the higher the cost is going to be on your end. In many cases, the termination cost may be so high that it makes more sense for you to complete the lease as agreed upon. Remember that the Consumer Leasing Act does mandate that all of these details are included and available for you to review in the lease you have on record.Early lease termination feeEarly lease termination fees vary widely from lease to lease. They are often based on a sliding scale, making it more burdensome to pay off the earlier you are in your lease. For example, if you terminate your lease in the first year, you may be required to make three additional monthly payments, whereas if you terminate your lease in the second year you may only be required to make two additional payments. Review your lease agreement thoroughly to determine your responsibility.Remaining payments on your vehicleYou may be required to pay some or even all of the remaining payments on your vehicle. This is potentially the most expensive part of exiting a lease early. If you decide to terminate your lease with 18 months left on your contract and your monthly payments are $300, you may be on the hook for $5,400 in addition to the other fees associated with termination. Any costs related to resaleLease agreements typically require you to pay a disposition fee, which covers any costs associated with reselling the car. This could include getting the car thoroughly washed and detailed, fixing any cosmetic dings, and performing any necessary maintenance. This can range from a few hundred to a few thousand dollars depending on the terms of your lease and the condition of your car. Taxes associated with leasingIf there are any additional taxes associated with the lease, you will be required to pay those. These costs vary greatly from state to state so you’ll want to make sure you know how much you’ll owe in taxes before making any decisions.Negative equity between your lease and the current market valueNegative equity is when you owe more than something is worth. This is also referred to as being “upside-down” or “underwater” on a loan. When it comes to a lease, it means that your monthly payments are not paying down the balance of the lease faster than the car is depreciating. Your lease agreement might require you to pay some or all of this difference in the car’s value.Storage and transportation of your vehicleAny costs related to the physical removal and storage of your vehicle will be your responsibility to pay.As you can see, all of the lease termination fees often make this the most expensive and least practical way to get out of a lease early, though it is definitely the most straightforward. Transfer the leaseA very popular option to get out of a lease early is to transfer your lease to another person. It is important to look at your lease agreement, however, as not all leases permit a third party transfer.Websites such as leasetrader.com and swapalease.com can help match you with someone looking to take over a lease. However, you must ensure that it is legal to do so in your state. The new lessee must also meet the lender’s requirements. If you are able to transfer the lease, you will most likely be held responsible if the third party stops making payments. You will also be required to pay any transfer fees, which can range from $500 to several thousands of dollars. It is common to offer incentives for people to take over your lease as well. An extra $500 to anyone willing to take over your lease might convince someone who is on the fence about whether taking over your lease is a good move. This option may be less expensive than returning your car early, but will still come with hidden fees, like the lease transfer fee and other costs that will pop up. You should do your due diligence and make sure you have a full tally of all associated costs before choosing to transfer your lease. Be sure to compare the costs between a lease transfer, early termination, and lease buyout before making any final decisions.Buy the carSometimes the most financially beneficial way to end a lease early is to buy the car from the lender. If you have the capital to do this outright, you can simply buy the car and pay for any associated fees. If you do not have that amount of cash on hand, you can opt for a car lease buyout loan. Depending upon the details of your vehicle and loan, buying out your vehicle entirely may be you best option for early termination. Yes, there are still fees involved, but it’s worth running the numbers to compare this option against the others. Many people who need or want to get out of their car lease option pick buying their vehicle outright (or getting financing to do so) because, unlike the other options, you get to keep the car at the end of the process. This means that you can either keep and use the vehicle or resell it, recouping some of the costs involved.Let’s take a closer look at how buying your leased vehicle works.How to buy your car from your lease agreementDetermine your car’s valueCheck for excess mileage, wear and tear, and disposition feesObtain a lease buyout loan, if necessaryDetermining your car’s valueEvery car lease has a residual value that is listed in the loan agreement. The residual value of a car is based on your car’s expected depreciation over the life of your loan and is predetermined by the leasing company. It is usually non-negotiable. This is the number that you are bound to should you choose to buy your car.It is important to also look at your car’s market value. This is based on the demand for your car, and will give you an idea of how much you can get if you resell the car. It is important to know what the market value is of your car to determine if it makes sense to purchase it. If the residual value of your car is $13,000, but the market value is $11,000, it would mean that you are paying $2,000 more than what your car is worth. Consider these values and determine if a car lease buyout makes sense for you. Maybe you want to keep the car for yourself and you are comfortable with paying for the residual value. Or maybe you want to resell the car, and you will still make money on the transaction based on the market value of the car. Other considerations for buying out your leaseBuying your car from your lender can release you from fees that you might otherwise have to pay. Leases often include charges or penalties for the following:Excessive mileage. Most leases have yearly mileage limits, and if you exceed that mileage amount, you can be paying huge penalties. These penalties can range from $.10 a mile to $.30 a mile, which can add up to several thousands of dollars if you drive a lot. Wear and tear. When your car is turned in after your lease is over, it is subject to inspection. Dealers will charge you for any external dents, stains to the interior, and anything else they think will hurt resale value. These fees can vary greatly depending on the condition of your car.Disposition fees. Dealers will usually charge you a disposition fee, which covers all costs associated with reselling your car. Think of all of these fees as money that can be put towards buying your car from your lease. If the fees add up to $3,000, it might make sense to take that $3,000 and use it to invest in the purchase. It is always a good idea to call your lender directly and find out exactly how much it will cost you to buy your car from your lease. To obtain a lease buyout loan:Call your existing lease company.Shop around for rates. Call your existing lease company, again. Sign the papers and notify your insurance company.Keep or sell your vehicle. If you’ve done the math and determined that buying out your lease is the best way to terminate your lease early, you may need to obtain a lease buyout loan. Not all lenders offer this type of loan, but at Auto Approve we work closely with lenders that provide these loans and will work with you to find your best rate possible. To get a lease buyout loan, you will need to take the following steps:Call your existing lease company. First, find out how much it will cost to buy your car. Tell them you are looking to buy out your lease and see if they provide that service.Shop around for rates. At AutoApprove we can jump start this process for you and help you start comparing rates.Call your existing lease company, again. Give them a chance to beat any competing rates that you may have found.Sign the papers and notify your insurance company. Make sure all of the necessary papers are signed, and tell your insurance company about the new lender. Since you will no longer have a lease, you may be able to reduce your coverage and your monthly payments, as you will no longer be required to have high liability coverage.Keep it or sell it. Now that the vehicle is yours, you can decide if it’s worth keeping it, or selling it and keeping the profit.Now You Know How To Get Out of a Vehicle Lease EarlyIt is not always easy to get out of a lease early, but there are options available to thos ewho want or need to do so. The best option for you will depend on your unique situation, but it rarely makes sense to terminate the lease outright. Finding a third party lessee or securing a buyout loan is the most beneficial option for most lessees. The worst thing you can do is agree to one of these options without knowing the final financial figures, so be sure to do your research.And if you are interested in obtaining a car lease buyout loan, get in touch Auto Approve today to get more information on how our experts can help you navigate the process and find a great deal from one of our trusted lenders.Get in touch today.

How do you transfer a car loan? Is it even possible to transfer a car loan to another person? The short answer is: not usually. However, there are certain situations where a lender may allow it. For example, if you’re moving to another country, are in a personal financial crisis, or are giving the car to another person as a gift.Here’s what you need to know about transferring your car loan and how you can decide what to do if you can’t afford your monthly car payment.The Complete Guide to Vehicle Loan TransfersWith the cost of insurance, gas, and maintenance, owning a car is incredibly expensive. But if your monthly payments are getting too high, what can you do? Is it possible to transfer your car loan to another person and walk away? In this guide, we’ll look at: if and when a car loan can be transferred to someone else, how to make it happen, associated fees, and other options for borrowers looking to get some relief from their monthly auto loan payment.So, Can You Transfer A Car Loan?There are some situations where a lender may agree to transferring a car loan. It will depend on the language of your loan contract and there may be fees associated with it. Situations where a transfer may be allowed:You are moving overseas and do not have the time to sell your car properly.You are in a very tight financial spot and need to get out of your loan agreement immediately. You are giving the car as a gift.Your car loan will have language in it that pertains to transferring your loan. If your car loan is “assumable”, then it can probably be transferred to another person. But if you are unsure of the language in your contract, be sure to contact your lender and explain your situation. Why Is Transferring a Car Loan So Difficult?The terms of a car loan are based on a number of factors, and perhaps the biggest factor is the financial situation of the applicant. Better terms, conditions, and car loan annual percentage rates (APRs) are offered to people who have a good history of making on time payments. The better your credit score and credit history is, the better your loan terms will be. Transferring a loan to someone else means that they will assume the exact loan and loan terms that you have, even if they have a drastically different financial history than you. If their financial situation is worse than yours, then the lender is taking on a greater risk without any compensation. If their financial situation is better than yours, then they are getting unfavorable terms. What Typically Happens Instead of Transferring The Loan?When you sell a car that is still being financed, a lender will instead look at the new borrower’s information and make a loan offer based on that. They will issue a new loan that is separate from your agreement entirely. How To Transfer A Car LoanIf, for whatever reason, your specific circumstance means transferring your car loan makes the most sense, you’ll need to:Discuss the transfer with your lender.Have the new borrower apply. Transfer the loan and the title.1. Discuss The Transfer With Your Lender.If you are allowed to transfer your car loan (and even if you aren’t allowed), your first step is to call up your lender and discuss your situation. If there is language in your loan terms that excludes it, you may still be able to talk them into it. The worst they can do is say no. If your loan is assumable, there will be conditions of the transfer. 2. Have The New Borrower Apply. The new borrower will have to meet their minimum credit score and any other criteria that the lender may have in place. The lender will review their application and determine if they will allow the transfer. 3. Transfer The Loan And The Title.When all of the paperwork is done, the lender can formally transfer the loan and you will need to transfer the car’s title. You should visit your state’s Department of Motor Vehicle to determine what you will need to do this. Typically you will need to have the bill of sale, registration, and money for the transfer fee. Be sure to transfer the title as soon as you can to avoid any problems. Contact your insurance company as well to remove the car from your policy and have the new owner insure the car themselves.What Fees Are Associated With A Car Loan Transfer?If you are allowed to transfer your car loan, there will be additional fees. The new borrower will most likely be responsible for them, but they may include:Application feeTransaction feesClosing feesFees for missed or late paymentsRegistration fee (for the new borrower to register with the state)Can I Transfer My Car Loan To A Credit Card?While you may find that you can transfer your balance to a credit card, it is not recommended. If you are offered a 0% introductory APR for a credit card, you may wonder if you can transfer your loan balance to your credit card and save on interest. A card might offer you a low APR and cash back, both of which sound appealing when money is tight. However, while this may be a viable option for some exceptionally financially responsible people, there is a significant disadvantage: missing a payment can be catastrophic. A missed or late payment could result in a skyrocketing APR that will put you in a much worse position than you were in previously. Refinancing your car loan is a safer option that does not come with the risk of a missed credit card payment.What Should I Do If I Can’t Transfer My Car Loan?If you are unable to transfer your car loan to another person, there are other steps you can take to get yourself into a situation that works better for you.1. Contact Your Lender And Ask For A Deferment.If you’re hoping to get rid of your loan because of financial difficulties, you may want to look into a deferment. Deferring your payments for a few months will pause your loan and allow you to catch up. It’s important to keep in mind that you will still accrue interest during this time, but it’s an easy and temporary way to get out of a tight spot. 2. Refinance Your Car Loan.Perhaps the most straightforward way to deal with high monthly car payments or a loan with terms that don’t work for you is to refinance your car loan. Refinancing is when you take out a new loan with better terms and conditions that will replace your current car loan. Refinancing may help you get a lower car loan APR and can help you change your repayment period. If you lengthen your repayment period you will have more time to pay off your loan and will greatly reduce your monthly payment. This can be a great option for many people who are struggling and need a little more wiggle room. Refinancing your car loan is easy, especially if you use a company like Auto Approve (that’s us!) that specializes in car loan refinancing. We have relationships with lenders that will help you to get the best car loan possible and experts to help guide you through the refinance process.3. Add A Cosigner.If you want someone else to be responsible for the car and the loan alongside you, consider adding a cosigner. You will both be equally responsible for the loan. This might be a good option if you want to take the car back in a little while and assume sole responsibility. You will still need to refinance the loan to add a cosigner, but adding a cosigner may actually help you get a better car loan APR and better terms and conditions. When you apply for a refinance with a cosigner the lender will consider both of your finances and credit histories. So if your loved one has a better credit score than you it may help you secure a better rate. 4. Trade Your Car In.If your car payments are decidedly too much money every month, another good option might be to trade your car in. If you trade your car in and get a cheaper car you will lower your car payments and still have a dependable mode of transportation. 5. Try Leasing Instead.Financing a car is significantly more expensive than leasing a car. While financing a car is great because it builds equity, leasing will allow you to have a dependable car for much less money every month. Trading your car in and leasing instead can help you pay for any fees and help reduce your payments further.6. Sell Your Car.If you lost your job or have had another significant life change, it might be best to sell your car and figure out a different mode of transportation. If things are especially difficult, refinancing your car loan may not be enough to put your finances in order. Perhaps you can try depending on public transportation for a little while, or carpooling with friends, family, neighbors, or co-workers until your situation gets sorted out. That’s Everything You Need To Know About Transferring Your Car Loan.Transferring an auto loan may be allowed in certain situations, but it is not widely offered or practiced. Instead, consider selling your car to another person or refinancing your loan with or without a cosigner. These solutions are much more likely to help you reach your end goal and reduce your monthly payments. If car loan refinance sounds good to you, find out how much you could save by getting a quote from Auto Approve today!Get your free, no-commitment quote in just a few minutes.

Want to spend less, save more, and  improve your financial situation this year? Saving money is a perfect new year’s resolution – especially if you make smart goals.You can resolve to…Make and maintain a budgetPut money into savings regularlySpend smarterConsolidate debtSave small and oftenPut impulse purchases on iceCancel subscriptionsRefinance your carGet creativeGet financially wiseTake a closer look at each of these New Year’s resolutions about money and decide which one(s) might be right for you and your unique financial picture.10 Smart New Year’s Resolutions About Money Read on to find out what each of these resolutions means and how it can help you be smarter about money this year. But first, what do we mean when we talk about setting smart goals and making smart resolutions?SMART goals are Specific, Measurable, Achievable, Realistic, and Timebound.That’s right, “smart” is more than it seems – in this case, it’s an acronym!When it comes to getting your financial ship sailing smoothly, SMART goals are the way to go – they’re a proven system for improving your odds of actually ticking to your resolutions. Specific means, instead of making a general resolution like, “I will save money,” you choose a way you’re going to save money. Let’s say it’s “I will cancel one streaming subscription.”Measurable means it’s something you can track. Instead of “I will save money,” you might say “I will find a way to spend $100 less each month.” Measurable can mean choosing a number or simply checking a box. A goal that is too abstract, like “I’ll figure out my finances this year” is less likely to be achieved than something measurable like, “I will read a book about managing my finances this week.” Even better if you can track your savings over the year in cold, hard numbers!Achievable means it’s something that can be done, and has been done before. (This is also sometimes written as “attainable.”) Instead of saying “I will cut my spending in half by the end of the week,” which would be quite difficult for most people, you want to choose goals that would generally be considered within reach.Realistic is like achievable or attainable, but adds another layer – is it realistic for you? Some people can save money by getting rid of a vehicle or canceling services, but if you’ve already pared down your subscriptions or your family needs two cars because of work schedules, you might not be able to reach even a goal that might seem attainable to another person. A realistic goal is one you can achieve with the time and resources you have available to you and that you’re willing and able to commit to.Timebound, or timely, means that your goal has a set timeline. It means giving yourself a deadline or dates on which tasks will be done. That means you should go beyond “I will cancel one streaming subscription” and put it on a timeline: “I will audit all my subscriptions and recurring charges by January 15th and choose at least one to cancel by the end of the month.” The absolute best thing you could do for your finances would be to choose a few of these money-related resolutions and put together a specific, measurable, achievable, realistic, and timebound schedule of specific actions to take and when you will take them, with the goal of saving a specific amount of money.With That In Mind, Get Ready to Make Some SMART Financial New Year’s Resolutions1. Make and maintain a budgetStart your financial recovery by creating a budget.If you do just one thing this year to improve your finances, building a budget should be it. In order to have a healthy financial picture, you need to know how much you’re making, how much you’re spending, and what you’re spending it on.One of the biggest and most common money mistakes is avoiding taking a close look at your finances. For many people, financial struggles can be scary, but looking your budget in the eye and getting a handle on it is the only way to start fixing things.  2. Put money into savings regularlyMake putting money in your savings account a priority.The easiest way to save money is to simply force yourself to do it. Some people set up automatic transfers. Some create bills for themselves so their savings payments get made with other important bills. Figure out how much you can realistically hold onto in a given month (this goes back to those SMART goals!), and make it happen. There are many different ways to calculate how much you can save and should be saving, but a popular rule of thumb is the 50/30/20 rule: you should be able to spend 50% of your income on needs (like housing, transportation, food, and utilities), 30% on wants (like going out, entertainment, and recreation), and 20% on savings (and paying down debt, if you have any). Generally, if your household needs are taking up more than 50% of your household income, it can start to feel like money is tight, and you may want to take a look at your essentials to see if you can make more money or reduce spending on the necessities – like by lowering your car payment, keeping a closer eye on your utilities spending, or changing to a less expensive phone or internet plan.On the other hand, if you find that the 50/30/20 rule leaves you with a little spare money in your pocket, saving is number one on the list of smart things you can do when you have extra cash.3. Spend smarterTake a look at where you’re spending your money and find areas where you can save.Budgeting and really getting granular about your spending is the best way to start seeing opportunities to spend less by spending smarter. Spending smarter means paying attention to the bigger picture and finding ways to save in the long run, like buying something you purchase regularly in bulk or in a larger size. They say that being broke is expensive, and that’s true – it’s easy to lose a dollar over time to save a penny now when money is tight. This also means not overpaying when you don’t need to – become a coupon person, start meal planning, and negotiate lower rates where you can – and start cutting out purchases that really aren’t doing anything for you (can you bring a snack from home, for example? Are there places where you’re wasting cash without even thinking about it?).4. Consolidate debtUse a debt service to consolidate bad debt.Roughly 80 percent of Americans carry some debt, whether that’s from a mortgage, student loans, credit cards, or otherwise. While student loan and real estate debt is generally considered good debt, high interest debt like credit card debt is not – it’s expensive to carry and rapidly rises. Consolidating debt with a high annual percentage rate (APR) can help you save money in the short and long term, by reducing the amount of interest you pay and helping you get to a place where the monthly payments are more manageable. 5. Save small and oftenMake the choice to save money wherever you can – and try to make it fun for yourself.While small choices might not feel like much – like choosing the tomato paste that’s on sale or learning to maximize your fuel efficiency – making a habit of spending less and feeling good about it can help you change your financial picture over time. Lots of people get a rush from finding the best deal!If you’ve found yourself spending a lot on little treats or impulse purchases, you might be getting the dopamine hit that makes shopping addictive. Giving yourself a treat budget and challenging yourself to make the most out of it can turn saving into a fun and rewarding game. The more you can give yourself a little dopamine hit for making good financial choices, the more likely you are to stick with it in the future.6. Put impulse purchases on iceUnless it’s an emergency (like needing medicine), never make a big purchase on the same day you thought of it.Speaking of impulse purchasing, another way to curb overspending is to take some of the fun out of it. If you’re thinking about making a large purchase or buying something you didn’t previously think you needed, sleeping on it can help you reconsider. There’s a rush associated with impulse buying, so stepping away and seeing how you feel after the rush wears off can give you a clearer look at the purchase and whether it’s right for your budget. 7. Cancel subscriptionsReview and cancel unnecessary subscriptions.Subscriptions, subscriptions, subscriptions. It seems like everything now is a subscription! Unless you’re paying close attention, it’s easy to end up with automatic, recurring charges on your card that you don’t even know about. There are services that can help you find all your recurring charges in just a few minutes – like Rocket Money, or many banks now offer it as a filter when you bank online. Take a good hard look at your subscriptions and figure out what you need or don’t, which if any are saving you time and money, and which (like streaming services) you might be able to rotate through over the course of a year instead of paying for consistently year-round.Many subscriptions might even offer you a discount when you go to cancel or to return later, which – while not a solid plan for saving money – can also help you trim a few dollars out of your budget if money is tight.8. Refinance your carLowering your car payment is an easy way to make more wiggle room in your budget.Most people can save money by refinancing their vehicle to better terms, because dealership loans typically include markups on their APR that leave car owners paying higher rates than they qualify for. While this won’t work for everyone – if you have bad credit, got an exceptionally low rate during the pandemic, have already refinanced your loan, or don’t have a vehicle loan, this resolution probably won’t help you – many, many people qualify for a better rate on their car loan, and even those that don’t can change their loan terms to pay less monthly if money is tight.To find out how much you could save, you can get a free, no-commitment quote from Auto Approve in just a few minutes by entering a few details right here.9. Get creativeImagine and discover money-saving alternatives to things that cost you money.Saving money sounds like it’ll be a boring slog, but if you come to it with a sense of adventure and discovery, you can spend less without feeling like you’re depriving yourself. While what sounds fun to one person might sound like a nightmare to another, bargain hunting, DIYing projects, and reimagining routines can be both budget friendly and delightful if you find the right swaps to spark your imagination.For example:Going thrifting instead of clothes or furniture shoppingSwapping a picnic or DIY date night for a restaurant dinnerGoing on a road trip instead of an international vacationAgreeing to stick to homemade gifts or a gift budgetLearning to make a favorite meal or treat at homeVisiting a park instead of going to a gymLearning to fix and mend beloved items instead of tossing themSwapping paid activities for community activities, like volunteering or attending a free concertRemember, you don’t have to make a hard and fast rule to only cook at home or never buy movie tickets. It’s harder to make and maintain big changes than small ones. If you swap one activity for a less expensive one per month, you’ll still be spending less – and hopefully finding new things to love!10. Get financially wiseLearn the ins and outs of money management to better understand and improve your financial picture.Last but certainly not least, you could resolve to learn all about the different kinds of savings accounts, investing, and money management. The average person is never taught about the different kinds of accounts, how they work, and how to know if you’re making the right moves for you to save for emergencies and retirement. If money has been tripping you up or you simply want to make the wisest moves you can with your money, a resolution to work on your financial literacy could go a long way.What Will Your Money-Saving New Year's Resolutions Be?Manage your money and make sure you have money for the things that matter most with these financial resolutions. Choose the ones that make the most sense for you and spend a few minutes to put together your SMART goals, and you’ll be well on your way to a 2026 better spent.And if you’re ready to jump right in, start here by refinancing your vehicle with Auto Approve. Refinancing with Auto Approve is simple, fast, and effective – we help you shop around by connecting you with our network of top lenders and pairing you with one of our refinance experts to guide you through your options.Get started with a quote now.

Want to lower your monthly car payment as soon as possible? Read on to find out how to make it happen.Here’s the short version.You’ll want to check whether:your payment is higher than it should beyour current lender is willing to negotiateit might make sense to sell your vehicle and buy a less expensive onerefinancing your vehicle makes sense for youlowering your car payment is the right solution for youRead on for your complete guide to lowering your monthly vehicle payment – whether it’s possible, whether it’s a good idea, and how to make it happen.The Best Ways To Lower A Monthly Car PaymentIf you have financed your vehicle, you may feel overwhelmed by your monthly payments. When you add on gas, insurance, and maintenance, your car can quickly eat up your monthly income. But there are a few ways to get a lower car payment and loosen up your monthly budget.In this guide, we’ll cover:What is considered a high car payment – and what makes a car payment too highThe best ways to lower your monthly car paymentThings to consider to decide whether you can (or should) lower your car paymentWhat Is Considered A High Car Payment?There are two types of too-high car payments:Monthly payments that are too high for your budgetMonthly payments that are above market ratesYou might be wondering if your car payment is higher than it should be. There is no hard and fast number that constitutes a “high” car payment, and it will depend a lot on what your finances and your budget look like, but here are the primary things to consider.Is your car payment too high for your budget?In general, it is recommended that you should spend no more than 10-15% of your monthly income on your car payment. Your total transportation expenses (gas, insurance, maintenance) should not exceed 20% of your monthly income. So if your car payment is over 15-20% of your monthly income, you are probably out of your budget with car payments.But that rule is not cut and dry. Look at your own personal budget to make the call. Consider all of your income and all of your expenses: the variable expenses (such as groceries and entertainment) and the fixed expenses (such as rent and insurance). If you are spending more than you are bringing home every month, it is safe to say that you need to shore up your budget, and reducing your monthly car payments will be a step in the right direction.Is your car payment too high for the market?There’s a possibility that your current loan terms don’t reflect the lowest Annual Percentage Rate, or APR, available to you.This can happen because:You got your loan when interest rates were higherYou got your loan from a dealer that marked up the rate so you didn’t get the lowest rate available to youYour financial picture has changed and you’re now eligible for lower rates than you were when you initially got the loanUse Auto Approve’s savings calculator (scroll down to find it!) or get a personalized, no-commitment quote in just  a few minutes to find out if you’re paying more than you need to be. Most people can save money on their monthly payment by refinancing to a loan with better terms. However, if your credit is very bad or your finances have other red flags, you may not be eligible for the best market rates.The Three Best Ways To Lower Your Monthly Car PaymentTry renegotiatingSell or trade in your vehicleRefinance your loan1. Try Renegotiating It never hurts to talk to your current lender about your money situation (and don’t be embarrassed, it happens more often than you might think). There might be a few things that they can do to alleviate your situation. Sometimes they will let you defer payments for a few months, but you will still accrue interest during this time so it will end up costing you more overall. Lenders may let you renegotiate certain terms of your loan, but in this case it’s better to apply for refinancing with a few different lenders, as they may be able to beat your current lender.2. Sell Your Car Or Trade It InIf you anticipate having a long term issue with car payments, it might be a good idea to sell your car privately or trade it in at a dealership.If you choose to sell your car, make sure you clean your car thoroughly ahead of time and take good pictures that will highlight your car’s best features. Do some research on Kelley Blue Book or Edmunds to find what a fair resale value will be. Call your lender to find out exactly how much you have left on your loan so you know how much you owe (and how much you should try to get when selling your car).Alternatively you can choose to trade your car in. This is a good option if you still need a new car but cannot afford your current loan. It is important to know beforehand how much is left on your current loan and what the resale value of your car is.3. Refinance Your LoanRefinancing your car loan is the best way to lower your monthly car payment. It is much easier than selling your car and much more effective than trying to negotiate with your current lender.When you refinance your loan, you want to apply with 3-5 lenders to get the most competitive rates. It is best to use a company that specializes in vehicle loan refinance, as they will have relationships with many lenders and can help you pick the best loan for your situation.Refinancing will be most effective if you are prepared. Take the following steps to make sure you get the best car loan refinance offers:Make sure your credit score is in good shape. The higher your credit score is, the better car loan APR you will be offered. Make sure you are paying your bills on time and in full (scheduling autopay is a great way to do this), pay down your debts that have the highest credit utilization ratio, and check your credit report.Know your current loan terms. You should know your current monthly payment, the amount of time you have left to repay, the car loan APR, and if there are any prepayment penalties for which you may be responsible. Call your lender if you have questions–you don’t want to refinance if the fees will outweigh your savings.Collect any documents you may need. You will most likely need a photo ID, your vehicle’s information (bill of sale, VIN number, make, model, and year), your proof of income and financial history (pay stubs, banking information, and your credit report), proof of residence, and proof of insurance.Research lenders. You won't be able to compare loan terms until you actually apply, but you can look around online for different credit unions, traditional banks, and online lenders. See what some of the average rate offers are, and see what their customers have to say. Customer satisfaction ratings are very important, so don’t ignore this step. Using a company that specializes in auto loan refinance can make this step much easier.Apply and compare. Once you have completed your research you can start applying. Be sure to apply in a fourteen day window so that all of your applications will count as one hard inquiry on your credit account. When the offers come in, look at the interest rate, the repayment period, the prepayment penalties, the fees, and the customer reviews to decide what loan is right for you. Sign and save. Once you pick a loan that is right for you, all you have to do is sign and start saving. And if you use Auto Approve to refinance your loan, they can help you fill out all of the paperwork (even the DMV paperwork!)Refinancing is the easiest and most effective way to reduce your monthly car payments. It allows you to shop around and compare offers so that you know you are getting the best terms possible. And when you have a company that specializes in car loan refinance, it is quick and easy.Does Lowering Your Monthly Vehicle Payment Make Sense For You?Here is a checklist to help you decide.Will your current lender negotiate?Does your vehicle make sense for your budget overall?Will lowering your vehicle payment fix your budget?Are you eligible for a lower car loan rate through refinancing?Will your current lender negotiate?Do you like and want to stay with your current lender? Have you contacted them to see if they can offer you a break?Does your vehicle make sense for your budget overall?If your budget is too tight and you’re still driving an expensive vehicle, there is no shame in downgrading to a more practical, affordable vehicle. While renegotiating your loan or refinancing to a new loan with more favorable conditions can certainly save you money, if your budget needs more wiggle room than tweaking your APR can offer, you may need to make a bigger change. Find out how much you might be able to save to give yourself a better idea of whether it’s enough.Will lowering your vehicle payment fix your budget?This is a similar question to the last one, but if your car is already sensible for your budget or if keeping your current vehicle is non-negotiable, you may need to look at additional ways to save money. You should still try to secure a lower monthly vehicle payment, but it may need to be part of a larger plan to right your financial ship.Here are some resources to help you get started:Inflation Getting You Down? 8 Simple Ways to Save Money in 202510 Sneaky, Simple Ways to Spend Less Money Every DayA Beginner’s Guide to Budgeting: Pay Down Debt FastFuel Efficiency Hacks: Saving Money at the PumpHow to Stop Impulse BuyingHow To Make the Most of Cash Back RewardsCan't Make Your Car Payment? Your Guide On What To DoTop 10 Ways to Save Money on Your Grocery BillsAre you eligible for a lower car loan rate through refinancing?The simplest way to lower your car payment quickly is to refinance your vehicle loan. Get started with Auto Approve today.Those Are The Top Ways To Lower Your Monthly Car Payments Now.Refinancing your car loan is your best bet when it comes to securing a lower monthly car payment. It allows you to shop around and compare terms so that you can be sure you are getting a better loan while allowing you to keep your car. If you think refinancing your vehicle is a good move for you, be sure to prepare ahead of time to ensure you get the best loan offers possible.Auto Approve is here to help with your car loan refinance. Our experts can guide you through the process to make your refinance a breeze. So don’t wait, get your free, no-commitment quote from Auto Approve today to see how much money you could be saving!GET A QUOTE IN 60 SECONDS

Looking for great songs about cars and driving? Add these hits about hitting the road to your driving playlist.tL;dR: Some of the best songs about driving include:“Cruisin’” by Smokey Robinson“Low Rider” by War“I Drove All Night” by Roy Orbison or the 2003 cover of “I Drove All Night” by Celine Dion“MONACO” by Bad Bunny“Milwaukee, Here I Come” by Dolly Parton and Porter WagonerFor a longer list of songs about driving or to skip straight to listening, check out this Spotify playlist.Hitting the Road? Here Are Some of The Best Songs About Driving and CarsWhat you listen to can make or break a long drive. One way to set the mood and get off on the right foot? A great playlist of songs about driving, road trips, getting out of dodge, and cars. Here are some top hits and lesser known picks to help you have a great drive, organized alphabetically by song title. For the purposes of this list, “By:” lists the performing artist, not the songwriter(s).1. Bright Side of the RoadBy: Van MorrisonYear: 1979Genre: FolkThis peppy, harmonica-heavy song invites an old lover to fall back in love as they move from “the dark end of the street to the bright side of the road.”2. Cruisin’By: Smokey RobinsonYear: 1979Genre: R&B/SoulCruisin’ is a smooth, chill love song that’ll have you gently swaying in your seat. Smokey Robinson invites the listener to “cruise away from here” and croons that “cruisin’ is made for love.”3. Diesel Smoke, Dangerous CurvesBy: Red SimpsonYear: 1967 Genre: CountryDiesel Smoke, Dangerous Curves is a fast-paced trucker song about the dangers of a long, winding road at the end of a long day.4. drivers licenseBy: Olivia RodrigoYear: 2021Genre: Indie/Power PopIf you're looking for more of an angsty, heartbroken driving vibe, Olivia Rodrigo’s driving power pop break-up song about driving by an ex’s suburban house made a big splash when it came out in 2021 for good reason.5. End of the LineBy: The Traveling WilburysYear: 1988Genre: Folk RockThe Traveling Wilburys was a supergroup that included Bob Dylan, George Harrison, Jeff Lynne, Roy Orbison, and Tom Petty, and End of the Line – where they sing “Well, it's all right riding around in the breeze, well, it's all right if you live the life you please” – offers a catchy hook worthy of the collected big names.6. Fast CarBy: Tracy ChapmanYear: 1988Genre: FolkFast Car is a sad song with powerful lyrics about getting away and an unforgettable tune that’s stood the test of time, with many covers and remixes making it big in the past few years – but the original version is still incomparable.7. FreedomBy: Beyoncé featuring Kendrick LamarYear: 2016Genre: Contemporary R&B/Gospel RockFreedom, off Beyoncé’s 2016 album “Lemonade,” may not technically be about driving, but is a great song for making a break for it and hitting the open road.8. Get ReadyBy: The TemptationsYear: 1966Genre: R&B/SoulGet Ready is a perfectly joyful Motown hit for those driving with a mission. Get ready to sing along, “Get ready, here I come!”9. Heads Carolina, Tails CaliforniaBy: Jo Dee MessinaYear: 1996Genre: Country On the flip side, if you’re driving with a plan to just get lost, the pop country song Heads Carolina, Tails California can be your anthem as you go anywhere the road leads you.10. Holiday RoadBy: Lindsey BuckinghamYear: 1983Genre: Pop RockHoliday Road was written by Lindsey Buckingham of Fleetwood Mac for the 1983 movie “National Lampoon’s Vacation,” then got re-used in most of the subsequent “Vacation” movies, meaning for many it’s inextricably linked to the idea of a zany, if not always successful, family road trip.Lower your monthly car payment with Auto ApproveHi! This is Auto Approve, by the way. We make refinancing quick and simple. A dedicated Auto Approve refinance expert can help you refinance your vehicle loan to save money on your monthly car payments (or truck payments, or motorcycle payments, or SUV payments).Get started now.11. I Drove All Night By: Celine DionYear: 2003Genre: Dance PopOriginally written for and performed by Roy Orbison in the late ‘80s/early ‘90s, the 2003 Celine Dion dance cover gave new, higher BPM life to the catchy song about driving overnight to a lover.12. Life is a HighwayBy: Rascal FlattsYear: 2006Genre: Country RockOriginally released in 1991 by Canadian musician Tom Cochrane, Life is a Highway became maybe the singular quintessential road trip song when it was popularized in 2006 by Rascal Flatts when it was featured on the soundtrack for the Pixar movie “Cars.”13. Little Red CorvetteBy: PrinceYear: 1999Genre: R&B/SoulThe titular little red corvette in this song might be mostly a metaphor, but if you’re a Prince lover, this song is a must for when you’re ready to drive just a little too fast (not that Auto Approve condones that! Drive safe).14. Low RiderBy: WarYear: 1975Genre: FunkHit the road in funky style with this driving classic about someone driving a lowrider – a hot rod, or vintage car with a souped up engine.15. Milwaukee, Here I ComeBy: Dolly Parton and Porter WagonerYear: 1969Genre: CountryThere have been many versions of Milwaukee, Here I Come, a song first recorded in 1968 by George Jones and Brenda Carter, but the zippy version by Dolly Parton and Porter Wagoner makes the best driving song thanks to its more fun, bouncy sound.16. MónacoBy: Bad BunnyYear: 2023Genre: Latin TrapMónaco has a sort of James Bond-y sound that makes it a great night driving pick. Bad Bunny sings about wealth and luxury through lyrics about Monaco and F1 racers.17. Mustang SallyBy: Wilson PickettYear: 1965Genre: R&B/SoulAnother absolutely iconic driving song, Mustang Sally is a spiritual precursor to Little Red Corvette with a solid groove.18. On the Road AgainBy: Willie NelsonYear: 1980Genre: CountryOn the Road Again is a classic country song all about the pleasures of hitting the road with a band of friends, written by Nelson for the 1980 movie Honeysuckle Rose (which he starred in as a struggling, aging musician).19. Proud MaryBy: Tina TurnerYear: 1993Genre: R&B/RockProud Mary was originally written and recorded as a rock song by Creedance Clearwater Revival in 1969, and every version of the song has its merits, but the Tina Turner solo version from her 1993 album What’s Love Got to Do With It?, with its slow build to high octane peak is simply unstoppable. (And yes, it’s technically about a boat, not a car, but if you can resist bopping along to “big wheel keep on turning, Proud Mary keep on burning,” you’re stronger than most.)20. Thunder RoadBy: Bruce SpringsteenYear: 1975Genre: RockNo one sings more effectively (or perhaps more at all) about hitting the road and getting away than the Boss himself. While many of his songs make great road trip music, Thunder Road takes the cake for the satisfying moment when Springsteen sings “Roll down the window and let the wind blow back your hair, well, the night's busting open, these two lanes will take us anywhere.” What’s better driving music than that?Listen to these songs on your next getawayWant to make that getaway happen sooner?Most people can save money by refinancing, so if you’d like a little more money in your pocket for gas money or to finance the perfect road trip, get your free, no-commitment quote from Auto Approve and discover how much you can save.

There are many reasons why refinancing your car loan is probably a good idea: refinancing can save borrowers money, enable repayment schedule changes, and more. Most individuals with a vehicle loan can benefit from refinancing with the right company. Read on to find out why you may want to consider refinancing, and why Auto Approve may be the right choice for your refinance.TL;DR:Auto Approve has great customer reviews, streamlines the refinancing process, works with top lenders, and ensures you find not just a great deal but the right deal for you and your needs. Here Are The Top 5 Reasons You Should Refinance Your Vehicle With Auto Approve.Refinancing can save you moneyRefinancing can help you change your loan termsRefinancing allows you to add or drop a co-borrowerRefinancing with Auto Approve is a popular choiceRefinancing with Auto Approve is simple, fast, and effectiveRefinancing can save you money.The main reason you should refinance your car loan is simple: it can save you a good chunk of money. When you refinance a 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 annual percentage rate (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. Let’s look at exactly how much money that can save you. For Example: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. Refinancing can help you change your loan terms.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 APRpay interest over a shorter period of time, meaning you are saving in total interest paidDepending 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.Refinancing allows you to 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. Refinancing with Auto Approve is a popular choice.With Auto Approve, you are in the hands of dedicated experts, ready to guide you through the refinancing process.Plus, our customers love us. Check out our ratings:A+ rating with BBB96% would-recommend rating on LendingTree4.7 out of 5 stars on TrustPilot (based on over 5,000 reviews!)Here are just a few 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.“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.“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.” TravisAuto Approve makes refinancing easy by handling the paperwork for you, and our dedicated team of refinancing experts help you find the deal that makes sense for you and your unique financial situation.Refinancing with Auto Approve is simple, fast, and effective.One of the most time consuming parts of refinancing is shopping around for offers. When you refinance with Auto Approve, we shop around so you don’t have to. 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. Get your free quote today to start saving money! It’s quick, easy, and effective–so what are you waiting for?GET A QUOTE IN 60 SECONDS

Looking to save money this holiday season? Hoping to add a little wiggle room to your budget A.S.A.P.? There are a few tried and true ways you may be able to free up a little extra cash for holiday travel, gifting, and end of year costs.Here’s the short versionYou can give yourself more cash for the holidays by:Paring down subscriptionsTemporarily retooling your budgetRefinancing your car, truck, or motorcycleSaving on perfunctory purchases with DIY or bulk giftsBecoming a coupon whizAdding a side hustleRead on for a more in-depth look at these strategies that can help you save, make, or find money now.How to make room in your budget for the 2025 holiday seasonUse these tips for saving money and you might find yourself feeling a little jollier. 1. Pare down subscriptionsCancel or downgrade some unnecessary subscriptions. Subscriptions have multiplied like rabbits in the past decade or so, and many services seem to be constantly hiking up their prices. A few dollars here and there can seem benign, but add up quickly. Do a subscription review and see if there isn’t a service you could live without for a few months in exchange for the extra cash back in your pocket.2. Temporarily retool your budgetMove money from categories where you might currently be spending more into the category you want to focus on at the end of the year.If you want a little more money for recreational things as 2025 comes to a close, you might need to find it by tightening your belt somewhere else. For example, could you cut your going out budget or trim your grocery bill down, knowing it’s only a temporary sacrifice to make room for the things that matter to you?3. Refinance your car, truck, or motorcycleRefinancing a vehicle can save you money in the short and long term. When you refinance your vehicle, you pay off your existing loan with a new loan with better terms for your financial situation. This can mean lowering your monthly payment by securing a lower interest rate, changing the term of your loan, or both. And, for many people, the refinancing process means a pause in payments of up to 3 months, giving you a quick cash infusion as well as the longer term savings.Of course, refinancing a loan isn’t for everyone. Find out if refinancing your car is right for you.4. Save on perfunctory purchases with DIY or bulk giftsSave money by choosing something you can buy in bulk or DIY projects to give away for smaller gifting. The holidays come with a lot of surprising little expenses that can really add up – host gifts, office gift exchanges, stocking stuffers, and so on. Spend some time brainstorming and find something that feels right for you that you can make or buy in batches. For example, it’s easy to make homemade Irish cream liqueur or DIY cookie dough jars, or you could buy a case of sparkling wine or fun mugs from Costco or fuzzy sock sets and save money by buying in bulk. Finding small ways to save on the surprise expenses can open up some cash for the gifts that matter most.5. Become a coupon whizUse grocery store coupon books and apps like Honey to get discounts on your holiday purchasing.There are tons of ways to find coupons and grab discounts in this day and age, whether that’s old school coupon clipping or going hunting online for deals. Many companies offer a discount for signing up for texts or emails, and there are apps and internet browser plug-ins that compile discount codes on autopilot to keep you from having to pay full price. If money is an issue this holiday season, put some effort into saving on your must-haves and you can certainly save a few bucks here and there.6. Add a side hustleConsider finding an additional job or gig or finding other ways to bring new money in – like selling things you no longer need.For many people, it’s easier to add room in a budget by adding more money than by shrinking expenses. If things are already tight and you’re mostly paying for the essentials, looking for a gig that could help you make a few extra dollars might be the fastest way to change your financial picture. This could be as simple as doing some babysitting or dogsitting, picking up an extra client or job, selling some things you’re willing and able to part with, or doing a little consulting on the side of your regular job.That’s how to make money now – the easy wayUse these money saving tips to put more money in your pocket for the end of the year. Unfortunately, there are no free lunches, as they say, but with these simple steps you can find a little extra cash in your budget for any holiday splurge you’re dreaming of.And if refinancing is your pick, you can get a free, no commitment quote right now to see how much you could save with Auto Approve.

Car loan refinancing can help you save money by securing a lower car loan APR and/or changing your repayment period, but how will it affect your credit score? Here’s the short answer: Any time someone performs a hard check on your credit, as lenders will for you to get approved for a new car loan, your credit score drops slightly. However, with consistent on-time payments, your credit will quickly recover or even improve.Read this guide to learn:The basics of credit scoresWhat credit score you need to refinanceHow refinancing specifically affects your credit scoreHow some people improve their scores after a refinanceWhen not to refinanceThe timeline for credit score recovery after a refinanceSteps to raise your credit scoreThe most important thing to do to limit how much your credit score is lowered by refinancingWhat Happens To Your Credit Score When You Refinance A Car: The Complete GuideCredit Score BasicsWhat is a credit score?What is a FICO score?How are credit scores calculated?Where does the information on your credit report come from?1. What Is A Credit Score?Credit scores are three digit numbers that are designed to tell lenders how likely you are to repay your debts. They indicate how financially stable you are.2. What is a FICO Score? FICO credit scores are the most popularly cited scores, but FICO is merely a type of credit score model (FICO stands for Fair Isaac Corporation, the company that helped pioneer credit scoring). Most agencies use either a FICO model or a variation of it for credit score calculations.3. How Are Credit Scores Calculated?Credit scores take a look at five major categories in your finances:Payment historyAmounts owedLength of credit historyCredit mixNew creditEach category is weighed differently, but each part is important to ensuring that your score is as healthy as possible. Credit scores are calculated by looking at monthly reports that are sent to the three major credit bureaus (Equifax, Experian and TransUnion). Your Payment History (35%)Your payment history is the most important factor in your credit score, accounting for 35% of your total score. Do you pay your accounts on time and in full, or do you miss payments? If you have had a missed or late payment, its effect on your score will depend on:The amount you’ve missedHow recently you’ve missed a paymentHow frequently you’ve missed paymentsEnsuring that you make consistent, full, and on time payments will have the greatest positive effect on your credit score.Amounts Owed (30%)This is the second most important category for your credit score, accounting for 30% of your credit score. The amounts owed category looks at how much money you owe, how much money you have available to you, and the number and types of accounts you have. The most important factor in this is your credit utilization ratio, which is a ratio of how much money you owe compared to how much money you have available to you. This looks at individual accounts as well as your total debt and total line of credit. Your ratio should be less than 30% for each account as well as your overall amounts owed.Length Of Credit History (15%)The length of your credit history makes up 15% of your credit score. This category looks at how long your accounts have been open and active. How long have you had your accounts open and how long has it been since you’ve used certain accounts? The longer you have a history of having open accounts, consistently using them, and consistently paying them, the higher your score will be.Credit Mix (10%)Your credit mix accounts for 10% of your credit score. Your credit mix looks at how diverse your credit accounts are. Lenders like to see that you can manage payments for a number of different accounts. Healthy mixes typically include installment loans, mortgages, car loans, credit cards and retail credit cards. The better the mix, the better your score will be.New Credit (10%)Your new credit counts for 10% of your credit score. This category looks at how many new accounts you have. If you have new accounts that you haven’t proven that you can consistently pay, it will count against you. New accounts are like unanswered questions to credit bureaus.4. Where Does The Information On Your Credit Report Come From?Many different organizations send reports to the bureaus, including:Mortgage lendersAuto loan lendersCredit card companiesPersonal loan lenders Medical billing collection agenciesUtility companies typically do not send reports, but missing utility payments can result in reports to a collections agency (which will be reported). The credit bureaus take all of these reports and break the information down into the following categories. What Is A Good Credit Score To Refinance A Car?Credit scores are broken down into five categories: Exceptional (Super Prime): 800-850Very good (Prime): 740-799Good (Near Prime): 670-739Fair (Subprime): 580-669Very poor (Deep Subprime): 300-579The better your credit score is, the better car loan APR you will be offered. The best car loan refinance rates are offered to those with very good and exceptional credit scores. But that doesn’t mean that you will be unable to refinance if your score isn’t quite that high.If your credit score is better than it was when you originally financed and/or the market rates are better than when you initially financed, there’s a good chance you will be able to qualify for a better car loan APR.How Does Refinancing A Car Affect Your Credit?When you refinance a car, it affects two categories in your credit score: your length of credit history and your new credit.Because it will be a new loan, it will shorten your length of credit history, which can cause a minor dip in your score. It will also be a new credit on your account, so your score will lower because it's new. Refinancing your car means that you will also have hard inquiries on your account. Hard credit inquiries will also cause a dip in your score, typically between five and ten points. It is temporary however, and they usually wear off in about six months. How Some People Improve Their Scores After A RefinanceWhile refinancing will affect parts of your score, it can also help your finances, and by extension credit score, by saving you money and making your payments more manageable.Refinancing Saves You Money So You Can Pay Off More DebtIf you are able to refinance your car loan to a lower car loan APR, you can save a lot of money over the course of your loan. And those savings can be used to pay down other debts you have. These payments can lower your credit utilization ratio, which can significantly improve your credit score.Refinancing Can Help You Make More Consistent PaymentsIf you are having trouble keeping up on your monthly payments, refinancing can help you by lengthening your repayment plan. When you lengthen your repayment plan you have more time to pay off your loan, which significantly lowers your payments. If you can stay more consistent on your payments, you will increase your score a good deal.When Not to Refinance For Your CreditFor most people, refinancing can help them save money on their monthly car payments. However, because refinancing does temporarily negatively affect your credit score, you should avoid refinancing:Right before making a major purchase that requires a credit pullRight after making a major purchase that requires a credit pullFor example, if you’ve just bought a home, you may want to wait for your credit to recover. And if you are hoping to buy a home in the next six months, you may want to prioritize having your credit score in tip top shape for that.Timeline For Credit Score Recovery After A RefinanceFor most people, any score reduction from refinancing should wear off within a few months to a year as long as you make on-time payments. The hard credit inquiry stays on your report for two years, but is most impactful when it is recent.Steps To Raise Your Credit ScoreWhether you’re building credit for the first time, want to get your credit score in tip-top shape before refinancing, or plan to use these steps to raise your score up after refinancing, here are some actions you can take to give your credit score a lift:Make consistent, on-time paymentsRequest higher credit limitsAvoid opening new lines of creditAsk to be an authorized user on an existing accountReview your credit reportWork On Making Consistent, On-Time PaymentsIf you have a habit of making late payments, try to fix this as soon as possible. Sign up for autopay on your bills if possible to ensure you don’t miss a bill and look for ways to keep up on full payments. Are there areas of your budget where you can make sacrifices to save a bit of money? Canceling unused or unnecessary subscriptions and switching to generic brands are just a few ways you can free up some extra money and ensure you are making full payments on all of your accounts.Request Higher Credit LimitsContact your credit card companies and ask for higher credit limits. This will automatically give a boost to your credit score by reducing your credit utilization ratio.Avoid Opening New Lines Of CreditAny new accounts that you open at this time will adversely affect your credit score, so try to resist opening anything new until after you refinance your car loan.Ask To Be An Authorized User On A Loved One’s AccountIf you have a friend or family member with a great credit score, becoming an authorized user on one of their accounts can give your credit score a boost. Their on time payments and low credit utilization ratio can help to give yours a boost.Request A Copy Of Your Credit ReportIt’s a good idea to request a copy of your credit report at least once per year to ensure that there aren’t any mistakes or errors. A missed payment marked in error can have a significant effect on your score, so it’s good to regularly review your report and make sure everything is accurate.When you decide to refinance your car, be sure to apply to all lenders in the same two week time frame. Credit bureaus know that people need to apply to different places in order to compare, so they give a two week window where all hard inquiries will count as one inquiry (and therefore only affect your credit score once.The Most Important Thing To Do To Limit How Much Your Credit Score Is Lowered By RefinancingWhen you decide to refinance your vehicle, you’ll want to shop around for offers from several different lenders to ensure you get the best deal available to you for your unique financial circumstances. However, if you choose to do this, you must be sure all the credit checks fall within the comparison shopping window allowed by the credit bureaus, which is typically 14 days, up to 45 days. When you do this – as long as the inquiries are all for the same type of loan – it’s counted as one inquiry instead of several on your credit report.At Auto Approve, we gather offers from many top lenders at once, which means you can be sure all credit checks are done in a short window, with no need for you to find and manually request checks across several companies.In short: Refinancing A Car Loan Can Cause A Slight Dip In Your Credit Score, But It Can Also Be Beneficial In The Long Run.Refinancing your car loan is easy when you use a company that specializes in car loan refinance, like Auto Approve. Our representatives will connect you with offers from top lenders, guide you through your options, then do the paperwork for you.Get a no-commitment quote from Auto Approve today to see how much money you could be saving!

Whether you want extra cash for a specific goal or are just looking to revamp your budget with inflation and rising costs, lowering your motorcycle payments can help open up some extra cash month to month – but how?Here’s the short answer.The only way to lower the monthly payment on a motorcycle loan is to change your loan terms, either by modifying your loan with your current lender or refinancing your loan. For most people, refinancing will be the better option, because you have more leverage when changing loan providers and can usually get more favorable loan terms that way. The exception would be if you have particularly bad credit or are otherwise not a good candidate for refinance.Read on to learn how motorcycle financing and refinancing works, what makes someone a good candidate for refinance, and the steps to start your refinance and secure a lower motorcycle payment.The Complete Guide to Lowering Your Monthly Motorcycle PaymentIn this guide, we’ll cover:How motorcycle loans workHow refinancing can lower a monthly motorcycle payment What determines motorcycle loan APRs (Annual Percentage Rates) How to make yourself a good refinance candidateThe steps to refinancing a motorcycleHow Motorcycle Loans WorkA motorcycle loan is a secured loan used to help finance a motorcycle. A motorcycle loan works the same way as a car loan. A financial institution (the lender) pays for your motorcycle, and you in turn repay them in monthly installments with an additional fee, interest, for the convenience of borrowing money. Your motorcycle is considered collateral, and if for any reason you cannot repay the lender, your motorcycle will be taken away (and any money you already paid will not be returned). The term “secured” refers to the use of collateral.Motorcycle loans have a principal, which is the price of the motorcycle, plus any taxes and fees, minus any down payment you make. This principal is the base of your loan, and then interest will be applied to that principal. The interest is calculated using a motorcycle loan Annual Percentage Rate, or APR, which is based off of market rates and off of your personal financial situation. How refinancing lowers monthly motorcycle payment In short: Refinancing can lower your payment through securing a lower interest rate, changing the loan term, or both.When you refinance, you are paying one loan off with another loan. The new lender pays off the old loan and you repay the new lender in monthly installments. The new loan will have a different APR and repayment plan, ideally with better terms for your unique financial situation. By securing a lower APR, you can save money every month. You can also accelerate your payment plan, which will allow you to pay your loan off faster and save money (lower APRs are traditionally offered to loans with shorter repayment plans). Or you can refinance a motorcycle loan to a longer repayment period and cut your payments every month.Refinancing your motorcycle is the best way to lower your monthly motorcycle payment and save money on your motorcycle loan. What determines the Annual Percentage Rate (APR) on a motorcycle loanMotorcycle loan APRs are determined based on:Market factorsCredit score and credit historyIncomeLoan termThese factors are important to understand if you want to lower your monthly motorcycle payment.Market FactorsThe economy’s performance will help dictate what APR you are offered. Interest rates are set by the Federal Open Market Committee. If they decide that spending needs to be encouraged, they will lower interest rates. In the past several years, interest rates have varied pretty drastically, so whether or not you can save by securing a lower interest rate may depend on when you took out your motorcycle loan.Credit Score And HistoryThe biggest factor for your motorcycle loan APR (that you can control) is your credit score. Lenders use them to determine how likely you are to pay back a loan. Your credit score looks at the following categories: Payment History. Are your payments consistently full and on time? Amounts Owed. How much money do you owe on your accounts?Credit History Length. How old are your accounts? Credit Mix. Do you have a healthy mix of different types of accounts and debts? New Credit. Do you have a lot of hard inquiries on your credit? Do you have some brand new debts? All of these factors are looked at when determining your credit score (and therefore your motorcycle loan APR). The higher your credit score is, the better motorcycle loan APR you will be offered.IncomeLenders will also look specifically at your income to determine your motorcycle loan APR. Your income compared to the amount of debt you are in will indicate to lenders if you will be able to repay your loans.The Loan TermThe longer the loan term is, the higher the interest rate you are offered will be. Lenders will often offer lower rates for shorter terms. This means that if you select a longer lease period, you are not only paying a higher car loan interest rate, but you are paying it for a longer period of time. You will ultimately end up paying a lot more money overall by selecting a long repayment period.What makes someone a good candidate for refinance The key factors that make you a good candidate for refinance are:You credit score and historyYour incomeYour down payment (original down payment or ability to add more at time of refinance)Your desired loan termYour vehicleThe age/time left on your current loanThe steps to refinancing a motorcycleTo start, getting a preliminary quote to see how much money you could potentially save requires no commitment or hard credit check.Once you’re ready to get serious about refinancing, you’ll want to:Review your creditGather your documentsGet quotes from multiple lendersCompare offersChoose your best offer and start savingReview your credit.Make sure your credit score is looking good. It is so important to have a good credit score when you are refinancing. That is how you can make sure you save the most money. If your credit score isn’t great, wait a few months before refinancing and work on improving your score. Focusing on making on time payments and paying down debt can have a huge impact on your score.Gather your documents.Gather all of your documents, including your original loan documents. You will need a photo ID, your vehicle’s information (may include the bill of sale, VIN number, make, model, and year of your car), proof of income and financial history, proof of residence, and proof of insurance. Scan them and upload them so you are ready to go when the time comes to apply.Get quotes from multiple lendersYou should aim to apply to 3-5 lenders so that you have enough offers to compare in a short period of time, to avoid multiple inquiries on your credit. When you choose to refinance with Auto Approve, we shop around for you and save you the hassle. We have relationships with lenders across the country, which means we can find you the best deals and save you the most money. Compare your offers. You want to look at the motorcycle loan APR, the repayment period, the prepayment penalties, and the customer service ratings when making your decision. When the deals come in, the experts at Auto Approve can help walk you through your options to help you find the best loan for you. Choose your best offer and start savingOnce you decide what loan is right for you, it’s just a matter of signing on the dotted line! We can even help you with all of the paperwork (including the DMV!) That’s it! Refinancing really is so simple when you choose Auto Approve.Now You Know How To Lower Your Monthly Motorcycle PaymentRefinancing your motorcycle is the best way to lower your monthly motorcycle payments. And when you choose Auto Approve for your motorcycle refinance, you’re in good hands. Auto Approve has a 96% would-recommend rating on LendingTree as well as an A+ rating from Better Business Bureau. So don’t wait any longer – get your free quote today!

What is a loan-to-value on a car loan?If you're thinking about refinancing your vehicle, you might come across the term “LTV” or “loan-to-value”. But what does that mean?Let’s start with the short answer.What is a loan-to-value (LTV) ratio in an auto loan?The loan-to-value on a car, often abbreviated to LTV, is the percentage of your car's value that you are borrowing from a new lender, or the percentage of your car’s value that you owe on an existing loan. Here’s a simple example: If your loan is $30,000 and your car is worth $30,000, your LTV is 100%, because 30,000 is 100% of 30,000.The loan-to-value ratio, or LTV, is the monetary value of your loan divided by what’s called the “actual cash value,” or ACV, of your car, so you’ll usually see your loan-to-value listed as a percentage. The higher the percentage goes, the more risk there is for you as an individual and for your lender, so a lower LTV is generally considered better than a high one.Read on to learn more about the ins and outs of your LTV.Everything you need to know about loan-to-value (LTV) on a car loanRead on to learn:How to calculate loan-to-value (LTV)Determining your vehicle’s actual cash value (ACV)Why loan-to-value mattersHow your down payment affects your LTVWhat is considered a good loan-to-value for a car loanWhat is considered an underwater loanHow do you calculate the loan-to-value on a car?To calculate your loan-to-value ratio (LTV), divide the total dollar value of your loan by the actual cash value (ACV) of your vehicle. For example:If you owe $16,000 on a car that is valued at $20,000 by the dealer, your loan-to-value ratio is 80%.16,000 ← owed on loan÷ 20,000 ← car value__________0.80 ← loan-to-value ratioThe tricky part, however, is figuring out your car’s actual cash value in order to do that math. Many insurers use a proprietary formula when calculating a vehicle’s ACV, which makes things a little tougher for the consumer. But, the good news is, you can get a ballpark range fairly easily.What does 80% LTV mean?80% LTV means you owe 80% of the total value of your car to your lender. This is a normal LTV.What does 125% LTV mean?125% LTV means you owe 125% of the total value of your car to your lender – more than the vehicle is worth. This is an example of negative equity or an underwater loan.This can happen when:you don’t make a downpaymentyour car depreciates too fastyou buy a car you can’t affordyou get too many add-onsyou finance a new car by rolling over your old loan into the new loan, carrying a balance from the old loan onto the new oneHow to figure out your vehicle’s actual cash value (ACV)The easiest way to find out your ACV for the purposes of calculating your approximate LTV is to research your car's make and model and look for cars with similar mileage and histories. To do this, you can use the Kelly Blue Book, search for cars like yours for sale online, or even visit a local dealership and ask their thoughts.The basic formula for computing actual cash value is to subtract depreciation from replacement cost, but that is pretty complicated. Your ACV will almost certainly be less than what you paid. For the most part, a car’s value drops significantly the moment someone drives it off the lot and it goes from new to used. But after that initial drop-off, the value depreciates much slower as the vehicle gets used and experiences regular wear and tear.Why does loan-to-value matter?The loan-to-value ratio is one of the most important parts of a new car loan because the loan-to-value on your proposed loan will often determine whether or not a lender will be willing to give you the financing you need, and on what terms.Think about the example of a loan with 100% LTV. Many lenders wouldn’t move forward with this loan because the LTV is too high, making their risk too high. That’s one of the many reasons most people put down a downpayment when buying a new car: lower the LTV makes you eligible for better loan terms and more likely to receive offers from more lenders.And the same is true for refinancing a vehicle. After all, the refinance process is basically applying for a new auto loan with another lender. You’re taking out a brand new car loan for the same vehicle and paying off your existing loan with the new loan. People do this to get a more favorable interest rate or to lower how much they’re paying per month (or both). So when you think about refinancing, you’re really thinking about getting a new loan – which also means that you want a good LTV to appeal to lenders when you want to refinance.How does a down payment affect my auto loan?When you get a loan, the lender will typically request an upfront cash payment called a down payment that’s not part of the financing. The down payment is used to reduce the loan-to-value ratio for your new loan. Some lenders also ask for an additional downpayment when you refinance. Even if the lender doesn’t ask, if you have the financial flexibility, you may want to request to add or increase a downpayment in order to help you save more money and pay less (monthly and in the long run).This is all done because your LTV percent can affect both the interest rate available to you and overall lender options. In fact, some lenders have an LTV ceiling, meaning they won’t lend if the LTV is above a certain percent. Again, the higher the loan-to-value, the more risk the lender has to take on (and you, too!), so it makes sense that a better LTV would give you more and better options for your new loan. For many loans, increasing the amount of your down payment will likely decrease the total cost of borrowing money for that purchase and may save you some cash in monthly payments.What is a good loan-to-value ratio for a car?In general, you want a low LTV. When refinancing a home, you want at least 20% equity in the home, so an 80% LTV or lower. Vehicles are a little trickier, since they depreciate in value over time. While an LTV less than 80% is ideal, it’s not uncommon to have an LTV around 100% on your existing loan when it comes to car loans. When getting a new loan through refinancing, a high LTV won’t necessarily disqualify you, but depending on the lender, you may be asked to put down a down payment to lower your LTV (and we’ll get into why in just a second). All that said, the lower the LTV, the better the interest rate you’re likely to get. So a lower LTV is always better for you as the consumer.What is an underwater or upside down car loan?A loan is called “underwater” or “upside down” when the LTV is higher than 100% – that is, when you owe more than your vehicle is worth.Here are some tips to help you get out of such a situation.And that’s everything you need to know about your car’s loan-to-value.Now you know what a loan-to-value is on a car and why it matters.Understanding how loan-to-value works on an auto loan, whether you’re buying a new car or refinancing your vehicle, is an important part of understanding your eligibility for different loans and the offers available to you.If you’re looking into refinancing, the team here at Auto Approve will work with you one-on-one through every step in the process – whether that means getting prequalified online or finding an offer tailored just for you. Get started today by filling out our simple form to get a quote in minutes.GET A QUOTE