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You’ve heard the term “refinance” quite a lot. Maybe it was referring to your mortgage, your car, or your student loans–but what exactly does refinancing mean? Does refinancing your car mean starting over?Let’s talk about what car refinance is and how you can benefit from it.What happens when you refinance your car?When you refinance your car, you are starting your loan over. You are getting a new car loan that will pay off your existing loan. This new loan will have a different car loan APR, a different repayment plan, and may or may not be with a different lender.Refinancing your car loan can help you in a few ways. If you can refinance to a lower car loan APR, you can not only reduce your monthly payments, but you can reduce the amount of money you will pay overall for the life of the loan. Refinancing can also help you add or remove a cosigner, change your repayment plan, and get out of a bad relationship with a lender.Is it easy to refinance a car?Applying for car loan refinancing is very easy, especially when you use a company that specializes in car loan refinance. But it does require a little preparation and research.Step 1: Prepare your financesWhen you refinance, your main goal is to get a lower car loan APR. This is how you will actually save money. And the biggest factor that you can control as to what APR you will be offered are your finances. Your credit score is the primary indicator that a lender has as to whether or not you are a good candidate for a loan. Because of this, you want to ensure that your credit score is as healthy as possible. There are a few steps you can take to help increase your credit score prior to applying for a car loan refinance:Be sure you are consistently making full, on time paymentsConsider signing up for autopay when possiblePay down any accounts that have a high credit utilization ratio (the amount of money you have taken out compared to the credit limit)Request higher credit limitsAvoid applying for any additional lines of creditTaking little steps to improve your credit score can pay off big in the long run. Additionally you should go through your finances to determine what car payment you can afford every month. Experts recommend paying no more than 10-15% of your monthly income on your car payments, and no more than 20% of your monthly income on your total transportation costs (gas, repairs, parking, tolls, etc). Making sure you have a detailed budget can help you stay within your means and avoid getting in over your head.Step 2: Research lendersYou cannot compare actual offers and rates until you apply, but you can do some research to determine where might be the best place to apply for refinancing. Be sure to consider traditional banks, online lenders, and credit unions. Read reviews and talk to friends to get the inside scoop on these lenders. Consider their advertised car loan APRs, their customer satisfaction ratings, and any reviews on hidden fees and penalties. Using a company that specializes in car loan refinance can eliminate this step for you, as they have relationships with lenders and can help curate a list of lenders for you.Step 3: ApplyYou want to apply with 3-5 different lenders. When you apply, you will need some paperwork. A Photo ID, your vehicle’s information, proof of income and financial history, proof of residence, and proof of insurance may all be required. Step 4: CompareWhen the offers start coming in, be sure to compare the APR, the repayment periods, the fees, the customer reviews, and the prepayment penalty fees. There is no limit to the amount of times that you can refinance your car, so you may want to refinance again in the future (and the last thing you want is a huge prepayment penalty fee standing in your way.) Be sure to read all of the fine print when deciding which loan is the best for you.Step 5: Sign and SaveOnce you determine which lender is right for you, you can sign and start saving. You will need to notify your insurance company and the DMV, but once that paperwork is complete you can start saving immediately. Your new loan will pay off your old loan and you will start over with your new lender.What is a good reason to refinance a car?There are a number of reasons as to why you may want to refinance your car loan. The top reason is the most obvious: to save money. Refinancing your car loan can help you to secure a new car loan APR, a lower one that will reduce the amount of overall interest you are paying. You may qualify for a lower car loan APR if any of the following apply to you:Your credit score has improved since your initial financingYour credit utilization score decreased since your initial financingThe market rates have decreased since your initial financingYour debt to income ratio has improved since your initial financingChanges to any of these could make a huge difference as to what car loan APR you will be offered. And even a small decrease on your APR percentage could mean savings of a lot of money.But aside from securing a lower APR, there are a few more reasons why refinancing your car loan makes good sense.You can lower your monthly payments, even if your APR isn’t lower.When you refinance, you can change your repayment schedule. If you lengthen your repayment period you can lower your monthly payments (since you will be paying off the principal over an extended period of time). If you are struggling to pay all of your bills every month, this is a great way to give yourself some breathing room. Take note that you will be paying more in the long run, but that might be worth it for you if you are struggling with your monthly budget.You can add a cosigner.You cannot simply add a cosigner to your existing loan, but if you refinance, you can add one to your new loan. There are a few reasons why you might want to add a cosigner to your loan:You would like to help a loved one build creditThey have a great credit score that could help you qualify for a better car loan APRYou want to shoulder the responsibility of the loan with a loved oneWhatever your reason is, refinancing your car loan is the best way to get a cosigner on your loan.You can remove a cosigner.On the other hand, your existing loan may have a cosigner that you would like to get rid of. Maybe there was a breakup or a divorce, or maybe you just don’t need someone’s help anymore. Again, refinancing your car loan is the best way to remove a cosigner.You can get out of business with your current lender.Refinancing also gives you the chance to get out of a bad relationship with your lender. If you have been unhappy with your lender for any reason, this is your chance to ditch them and get a better lender. According to Consumer Financial Protection Bureau, there are quite a few complaints with lenders that may warrant a breakup: Communication issues in regarding forbearance (forbearance is a temporary pause in payments)Repayment options for forbearanceDelays from lender in regards to loan modificationOvercollection of funds for taxes and insuranceConfusion with account noticesPutting overpayments into an unallocated fund rather than applying them to the loan’s principalIf these complaints sound familiar, it might be time to find a new lender and start fresh. There are thousands of lenders across the country that deal with refinancing, so you don’t need to stay in a relationship with one that you are unhappy with.Refinancing a car means getting a fresh start with a new loan (which can save you a lot of money!)Refinancing a car can sound daunting, but it really is an easy process with a very large payoff. By taking the time to apply now, you could save hundreds, if not thousands, over the life of your car loan. At Auto Approve, we strive to make refinancing as simple and rewarding as possible. Our experts can help guide you through the application process and pick which offer is the best for you. But you don’t have to just take our word on it. We have a 4.7 out of 5 star rating on TrustPilot (with nearly 6,000 reviews!) and an A+ rating from the Better Business Bureau. On top of that, we have a 96% would-recommend rating on LendingTree. With Auto Approve, you know you are in good hands. So don’t wait to start saving money: contact Auto Approve today for your free quote!GET A QUOTE IN 60 SECONDS

If you are a dog owner, chances are you drive a lot with your pet. Dog parks, trails, trips to the vet–you might find that you spend more time in your car with your dog than you ever would have anticipated. Since both of you are spending so much time in the car, you should both be happy and comfortable. So what should you look for when buying a car to ensure that both you and your furry friend are riding in style?Here’s what dog-friendly features you should look for when buying a new car.What dog-friendly features are important when choosing a car?Let’s face it: you’re most likely not going to take your dog on a test drive when picking out a new car. That means it’s super important to have a checklist with what features are important to make your friend comfortable. With so many cars and features on the market, you may be wondering what features are best to have for your dog. Here are our favorite dog-friendly options.A hatch that opens so that they can jump in and out easily.A low to the ground profile to make it easier to get in and out of.A boxy cargo area that gives you more space for crates and pet supplies.Seats that fold flat to make more room.Waterproof seat protectors.All weather floor mats.A sunroof, moonroof, or rear windows to provide extra ventilation.Rear cargo attachment devices.A pet barrier to keep your dog from getting into the front seat.Rear air conditioning vents to give extra ventilation.A fold out ramp to make getting in and out even easier.In floor storage bins for extra pet supply storage.Childproof windows and door locks to make sure they don’t get hurt.Many of these features you can buy separately and add on to any car (like all weather mats and pet barriers), but that’s not the case for all of them so be sure to look around and see what cars you like have these features. What is the best way to travel in a car with a dog?If you are looking to get a new car, you need to keep in mind the safety of your dog. While you may think that a quick drive into town is ok with your dog sitting beside you, it is very dangerous to do so. While most states do not have laws requiring your dog to be restrained, it is good practice to follow the suggestions below when driving with your dog.Secure your dog using either a harness, crate, or carrier.Keep water in your car to keep your dog hydrated.When it’s warm, open the windows to give your dog some fresh air (not wide enough for them to jump out of, though) or put on the air conditioning (be sure the vent isn’t blowing directly on them).Take one of their favorite toys or blankets along for the ride.Take regular stops so that your dog can stretch and relieve itself.There are also several things that you should be sure you do not do when you have your dog in the car with you.Don’t open the windows wide enough for your dog to stick its head out of the window.Don’t feed your dog right before getting in the car (give yourself at least 2 hours).If your dog is riding up front with you, make sure the passenger airbag is off.Don’t leave your dog unattended in the car.These tips can help ensure a safe and comfortable ride for both you and your furry friend.What is the most dog-friendly vehicle?When determining what vehicles are most dog friendly, it’s important to look at all of the features that they offer as well as how reliable and practical they are. Here are some of our favorite picks for 2022.2022 Subaru OutbackSubaru is consistently ranked as one of the most pet-friendly car manufacturers. This fits with their branding, as Subaru is a very outdoorsy, family friendly, and sporty car company. It only makes sense that they would have a strong pet-friendly element. Subaru even goes one step further, partnering with shelters to encourage adoption.The 2022 Outback has loads of pet-friendly features that put it at the top of the list. It features 32 cubic feet of cargo space, eight air bags to keep all occupants safe, and has a low load floor that makes it super easy for older dogs to get in and out of it easily. On top of that, it’s all wheel drive which makes it stable in all driving terrains.2022 Tesla Model 3The Tesla is the first car to have a ”dog mode”. This is a climate control feature that  allows the driver to leave their pet in the car while the cabin stays cool or warm (depending on the season). It also alerts others that there is a dog in the car and that the driver is aware.Other top picks for dog ownersEvery year AutoTrader ranks the top cars for dog owners. They look at what dog friendly features and accessories each model has, as well as the price of each model. In addition to the 2022 Subaru Outback and the 2022 Tesla Model 3, eight other models made the cut:2022 Chrysler Pacifica2022 Ford Bronco Sport2022 Hyundai Santa Fe2022 Jeep Wrangler2022 Kia Soul2022 Ram ProMaster City Wagon2022 Toyota Sienna2022 Volvo XC60While each model varies in what it offers, they are all deemed to have good options for dog owners. They also represent a range of price points, with the Kia Soul representing a good entry level price (starting around $19,790). The Wrangler and Bronco do not have a low entry that makes for easy access, but they come with other accessories such as soft crates which make them great options for dog owners.It is notable that no pickup ever makes the list, as pickup trucks are not considered to be a safe option for transporting a dog.Those are the dog-friendly features you should look for when buying a new car.Buying a new car should be fun and exciting, for you and your four legged friend. Think about what options are the most important for your lifestyle before you head to the dealership. If your dog is older, a low entry is essential. If you like to take your dog on trail adventures, all wheel drive should be your priority. But there are lots of options on the market, and by adding on aftermarket dog features and accessories, you are guaranteed to find the perfect car for your family.If you already have a great ride for you and Fido, then you might be overpaying on your monthly car payments. Get in touch with Auto Approve today to find out just how much money you could be saving.GET A QUOTE IN 60 SECONDS

We buy a motorcycle and hope that it will ride well forever. But unfortunately that’s not the case, and at some point, our bike’s will have an issue. Ignoring these issues can cause bigger problems; problems that just might leave us without a ride (or at least with a very large repair bill). So what are the most important problems to look out for with your motorcycle?Here are the top 5 warning signs from your motorcycle that you don’t want to ignore.Warning Sign #1: You see rustRust may seem like just a cosmetic nuisance, but it is in fact much worse than that. Rust is caused when metal is exposed to moisture and oxygen, and since bikes are outside constantly, it isn’t an uncommon problem. But the problem is that rust spreads, and when it spreads it can seriously affect the performance and safety of your bike. These are just a few of the problems rust can cause. Rust in the gas tank can affect fuel flow, clog filters and fuel lines, and circulate in the engine causing damage.Rust on a motorcycle chain can make the chain noisy and shorten its lifespan.Rust on the body or frame can cause the bike to be structurally unsound.Rust can spread not only in surface area, but can spread deeper into the metal, making the problem progressively worse and worse. So before the rust spreads too far, you want to nip the problem in the bud. When you notice rust, take the following actions to stop it from getting worse:Wash the rusted parts with a motorcycle cleaning gel and water to remove surface dirt. Dry the washed areas with a clean cloth.Scrape rust off with an abrasive material, such as steel wool, then switch to sandpaper when most of the rust has been removed. (Try to avoid aggressive scrubbing)Apply chrome polish to finish removing small rust bits and scratches.Wax the chrome to prevent future rust.Keeping an eye out for rust will not only keep your bike looking good, but it will keep it running more efficiently. Warning Sign #2: You notice a low MPGIf you are used to getting a certain mileage per gallon and notice a drop off, this can be a sign of a number of issues. An average motorcycle gets about 35-40 miles per gallon, but if you notice that you are suddenly getting under 30 mpg, you should try to figure out what the culprit might be. A loss of fuel efficiency could be caused by:Low tire pressureA leak in the fuel lineThe brakes are too tightMalfunctioning spark plugsOther reasonsIf you notice a loss of fuel efficiency, take the following steps to see if you notice any improvement.Change your fluids–oil, transmission fluid, and coolantMake sure you are using the recommended fuelReplace your air filterClean out the fuel systemClean and lubricate your chainInflate your tiresIf none of these seem to be working, take your bike into a certified mechanic to make sure there is nothing more serious going on.Warning Sign #3: You hear strange noisesYou know your bike, and you know what it should sound like. If you start hearing noises that your bike typically doesn’t make, you don’t want to ignore it. Clinking, clattering, sputtering, and hissing can all indicate deeper issues with your bike. Here are some of the top strange noises and what they can mean.Grinding: A grinding noise cannot be ignored, as it most likely indicates a problem with braking. Replacing the brake pads is a likely fix, but if the noise continues be sure to get it looked at immediately.Hissing: This noise can indicate a few issues, and can be as simple as your tire leaking. If that’s not the culprit, it might be a blown gasket, radiator leak, or exhaust leak.Snapping: A snapping noise may signal an issue with the ignition. You may notice that the engine is hesitating if this is the issue.Kinking: Again, this noise can be a few different things, but it could mean a few things such as a corroded chain, kinks in the links, or misaligned sprockets.Ticking: A ticking sound could be from low oil levels, loose cam chains, valve train problems–any number of problems. If you cannot detect where the noise is specifically coming from, be sure to have your bike inspected.Strange noises are not something to ignore, as they are one of the main indicators you have that there is a problem with your bike. Warning Sign #4: You notice poor brakingIf you notice your brakes acting up when they are applied, be sure to get them looked at immediately. Depending on how they are acting, there are a few different things that could be the issue.Loss of Brake FluidIf you notice an above average loss of brake fluid, check your brake system to see where this loss might be coming from. The leaking could be coming from joints, the caliper, or the reservoir. Checking all of your connections can help you pinpoint where the issue is and prevent further brake fluid loss.Brake FadeWhen the brakes do not hold onto the wheels for a prolonged period of time it is known as brake fade. This can happen for a few different reasons:Repeated intense application of the brakesBrake fluid deterioratedPoor contact between the brake lining and the drumReplacing the brake fluid, reducing your speed and using lower gears, and correcting your braking habits can help with brake fade. Braking JudderingIf you hear a ringing noise in your brakes (a judder), it may be as simple as a wrong brake adjustment, which can be corrected. It could also be from the lining rivets being loose, in which case the rivets and liner will need to be replaced.Brake BindingBrake binding happens when the liner binds to the brake drum and remains there even after braking application stops. Replacing defective springs, lubricating the anchor pins, and ensuring the fluid levels are correct can all help to fix this issue.Brake OverheatingBrake overheating can be a result of the same issues with brake binding, but could also be a result of prolonged brake overuse. Caliper seizing is another possible culprit. It’s important to remedy this as soon as possible to continue safe riding.Grabbing BrakesGrabbing, or seizing, brakes can occur for a few reasons, but they are usually easy to remedy.The linings are greasy. Taking them apart and cleaning them will help fix this.The shoes are adjusted incorrectly. Taking them off and reinstalling can fix this.The brake drum is scoured. Regrounding the drum should help with grabbing.There is dirt or dust on the brake shoe. Cleaning them thoroughly should help fix this.The shoes are interchanged. If they were not installed correctly, brakes will seize. Reinstalling them correctly should help with this.Brakes can have issues for a number of reasons, but it is important to find the underlying cause. Your brakes are arguably the most important system on your bike, so it is vital that they are working properly.Warning Sign #5: You see oil sludgeIf you ever see oil sludge on the outside of your engine, or notice it when you are changing the oil, do not ignore it. Oil sludge accumulates when oil isn’t changed often enough. As oil sits in the engine, it changes and becomes thick and clumpy. Engine sludge can block proper oil flow to parts of the engine, which in turn causes certain engine parts to retain excess heat. This can cause major engine damage over time.If you notice any sludge, clean it from your engine as soon as possible. You can clean any visible spots by hand and purchase an auto sludge remover (found at most auto stores) to clean the inside of your engine. Take your bike to a mechanic if the sludge is extremely thick or difficult for you to remove. In the future be sure to change your oil and oil filter regularly and try to decrease the amount of stop and go driving you do. Frequently stopping and starting again will cause sludge to build up. Ignoring engine sludge can lead to costly repairs down the road, so be sure to take care of it as soon as you notice it.Those are the five warning signs from your motorcycle that you shouldn’t ignore.Taking care of your motorcycle will ensure that you have many more miles on the road together. Bikes that are properly maintained can last a long time, so don’t ignore any warning signs. And if you have a bike that is financed, there’s a good chance that you are overpaying on your monthly motorcycle payments. Refinancing your car with Auto Approve can save you hundreds, so don’t wait–get in touch with Auto Approve today for your free quote!GET A QUOTE IN 60 SECONDS

We expect certain things from a sales pitch with a car dealer. They will try to sell you on dealer financing, they will try to sell you some fancy add-ons, and they will definitely try to sell you an extended warranty. But just because it’s become a trope of the industry doesn’t mean that it’s necessarily a bad–or a good–thing. The truth is that extended car warranties can be worth it for some people, while for other people they might not be necessary. Let’s talk about extended car warranties and how you can decide if getting one is worth it.What’s the difference between a factory warranty and an extended warranty?All new cars come with factory warranties. Factory warranties are a guarantee by the manufacturer that your new car will last a certain period of time without requiring costly repairs. If anything should go wrong in that time period, the manufacturer will foot the bill. There are two types of warranties that a manufacturer may offer: powertrain and bumper to bumper.Powertrain warranties cover your engine and transmission–essentially the most important parts of your car. Bumper to bumper warranties cover all of the other systems in your car, from your navigation system to the suspension system. The fine print will tell you exactly what is covered and what is excluded, as these details will vary from warranty to warranty and from manufacturer to manufacturer. They do not cover everything that can go wrong with your car, and typically exclude wear and tear and maintenance issues. It is common for manufacturers to offer a bumper to bumper warranty for the initial few years, and then a powertrain warranty for an additional few years. You may get a new car that has a bumper to bumper warranty for the first 3 years/36,000 miles, and then a powertrain warranty for the next two years/24,000 miles.There also may be exceptions in your coverage for certain components. Under federal law, manufacturers are required to cover emissions repairs for 8 years or 80,000 miles, whichever comes first. This will cover your catalytic converter as well as other costly repairs.Extended warranties work in two ways. They can provide additional protection to your existing manufacturer warranty, or they can provide coverage when your manufacturer warranty expires. If you have a powertrain warranty (and not a bumper to bumper) you can get an extended warranty that can cover the rest of your car. This can help cover:SuspensionNavigationElectronicsAnd moreGetting an extended warranty can also be a great idea when your initial warranty expires. After all, the older a car is, the more likely it is that something will go wrong.How do extended warranties work?There are two different types of extended warranties: OEMs and third party warranties. OEMs, or original equipment manufacturer warranties, extend the initial warranties. This is the type of extended warranty that a dealer will try to sell you when you purchase your car initially. Dealer warranties typically stipulate that you need to go to a dealership to have any work done on your car. This can be a hassle for many. Additionally, they may not allow the same level of coverage as your initial warranty had. A good alternative for manufacturer’s warranties are third party warranties.  These warranties can also be purchased to provide protection after your initial purchase. Third party warranties can be a great option as they allow customers to shop around and compare coverages and prices. They allow you to customize your coverage and will allow you to have more flexibility as to where you take your car for repairs. Many third party warranties will require you to pay for repairs out of pocket and reimburse you later however, which is important to keep in mind.Is it worth paying for an extended warranty?Extended warranties oftentime get a bad rep, but the truth is they can be worth it for many people. If any of the following apply to you, an extended warranty may be a good idea:You like peace of mind. After your manufacturer's warranty expires, you might be missing the peace of mind you once had. Cars break down all the time, unfortunately, and it never happens at a convenient time for us. But if you have an extended warranty, you do not need to worry as much about the financial side of this inconvenience. Think of an extended warranty as insurance: you don’t always need it, but when you do need it, it’s nice to have.You like getting extra perks.Third party extended warranties often come with added advantages. This will vary from company to company but can include:Rental car reimbursementFree towingLockout servicesRoadside assistanceThese additional perks can alleviate the burden of a breakdown even more.You can get the latest technology.Have you ever gotten a new car only for the technology to become out of date all too quickly? It is frustrating to have technology in your car that is out of date and in need of software updates. These updates without a warranty can be very cost prohibitive, and may even sway you against getting the latest tech. But an extended warranty can cover this and give you the freedom to get what you want.You want customized coverage.Manufacturer’s warranties have a tendency of being very one size fits all. They are much more difficult to customize and cover what you want. After all, no one knows your car better than you do, so customizing your own coverage just makes good sense. A third party extended warranty will give you a lot more leeway to cover what you want (and therefore only pay for coverage that you want).You don’t work on your car yourself.If you like to work on your car and fix it yourself, then an extended warranty is probably not worth it. But if you don’t like to (or know how to) work on your car yourself, then an extended warranty can save you a lot of time, money, and hassle. Modern cars are much more complicated to work on than older cars. Cars that are twenty or thirty years old are much simpler and do not have the electronics and computers that make modern cars so much more complicated. So if you are not up for the hassle of working on your car yourself, consider getting an extended warranty to save yourself the headache–and get a qualified mechanic to help you out.You don’t have a lot saved up for emergencies.Many Americans do not have a lot of money in savings should something go wrong. All it takes is one huge bill to hurt our finances and leave us in a difficult position. But if you have an extended warranty, you only need to worry about the upfront warranty cost and the deductible. Better yet, if you refinance your car, you can add your extended warranty into your monthly payments.How to get the best extended warranty.If an extended warranty sounds like a good idea to you, here are our top tips for getting the best extended warranty possible.Shop around.There are a lot of companies that offer extended warranties, so it’s a good idea to shop around and compare products, cost, and customer service. When considering a warranty, customer service is incredibly important. If people frequently complain that they cannot get their claims processed or are given a lot of pushback, run the other way. You can typically find pretty transparent pricing for different companies, but make sure that when you are comparing prices that you are comparing comparable amounts of coverage.Pick the plan that makes sense for you.Each extended warranty company will have different tiers of coverage. The lowest end of protection will typically cover the powertrain while the highest level will cover the electronics, navigation, and entertainment systems. Think about how you drive, what you care about, and what you can live without should something break.Do the math.Look at how much you are paying for your warranty and how much the deductibles are. For example, let's say you purchase a warranty that is $1200 and charges a $300 deductible. You make five claims in the coverage period, and it ends up totalling $2700. If you instead opt for a higher upfront warranty cost of $1800 with a $100 deductible, those same five claims will net you a total of $2300. While you cannot exactly predict what you will need, see what makes the most sense for your car and your situation. That’s the truth about extended car warranties and how you can decide if getting one is right for you.An extended warranty isn’t right for everyone, but it can be a great way to get some peace of mind. And if you refinance your car loan with Auto Approve it’s easy to add those payments into your monthly car payments. Contact Auto Approve today to find out how much money you can save with refinancing!GET A QUOTE IN 60 SECONDS

Car dealers love to offer financial incentives to motivate potential buyers. Rebates, discounts, and 0% financing are all used at various times to get buyers in the doors. So what exactly are these incentives, and are they worth seeking out?Let’s talk about rebates and other sales incentives used by car dealers.How do rebates work?Car rebates are a very specific type of sales incentive. A rebate is a return of cash to a customer for agreeing to buy or lease a car. Rebates are different from discounts because the money is not immediately taken off of the sale price. Instead, money is returned to you at a future point in time. Rebates can be offered by either the manufacturer or by the dealership. If the rebate is offered by the manufacturer, you may go to any dealer to get that rebate. But if the rebate is dealer specific, you do not have that flexibility.Rebates are commonly used when one particular model is lagging in sales, as it will increase demand for the model. This is one way for dealers to push sales in a certain direction.Rebates can vary greatly, from as little as $500 to as much as $5,000. They are usually on a strict timeline, typically lasting about two weeks. They are much more commonly used by popular brands such as Honda and Toyoata, and are used much less frequently by luxury brands.It is common for buyers to use the rebate money as a down payment. It’s important to note that a rebate is not a discount, because you will still be taxed on the list price of the car. Some states do allow rebates to be deducted from the list price, so check your state laws.There are some great advantages to cash rebates: You can use the rebate as a down payment.It doesn’t affect the car loan APR you will be offered.It can help you afford a new car that might otherwise be out of your budget.But there are some disadvantages to rebates as well:They only apply to certain models, so you have a limited selection.They only apply to new cars, so certified pre-owned cars are not an option.You cannot combine them with other incentive deals, such as 0% financing.If a rebate is being offered on a car that you are interested in already, then that’s great! But if it’s swaying you away from what you truly want then be sure to think your decision through thoroughly. If the car that has the rebate offer costs $10,000 more than the car you originally wanted, and the rebate is for $5,000, you may not be making out as good as you may think.What other sales incentives are used by dealerships?Delayed Loan PaymentsAnother common incentive for dealers to offer is delayed loan payments. This allows customers to not make payments for the first few months that they have the car. It’s important to check the fine print on this though–you may still accrue interest during this time.0% FinancingIf you have exceptional credit (typically above 780) you may qualify for 0% financing. This means that when you make payments, you are only required to pay towards the principal of your car. This will allow you to pay your loan off faster and save more money overall. Again, this is only an option for people with stellar credit, and it may only apply to certain models.Lifetime WarrantiesAnother incentive that dealers may use is a lifetime warranty. By throwing in a lifetime complimentary powertrain warranty, your car may be covered for any big issues for as long as you have the car.Can you combine incentives?Some dealerships may offer combination incentives, such as a lifetime powertrain warranty and 0% financing. But they will not offer you both a rebate and 0% financing–you will need to pick which is more beneficial for you and your situation.How can I get the best deal on a new car?Research.When you are looking to get a new car, you want to be as informed as possible. If you know what specific car you want, be sure to research it ahead of time. Know what features you are looking for and what you can live without, and have a realistic idea of what the price will be.Also research the dealer that you are planning on visiting. Do they have good customer reviews? Do people seem to have positive experiences, or do they have a reputation for inflating prices and trying to upsell? It’s good to have a few dealers in mind so that you can shop around.Prepare your finances.The most important thing you can do to get the best deal possible on a new car is to make sure your finances are in good shape. Are you paying cash or are you looking to finance? If you are paying cash, be prepared for the total cost of the car: the list price, taxes, and fees. Paying cash always gives you a little more room to negotiate, but it’s good to be prepared for any extra costs that might come your way. If you are looking to finance your new car, take the time to ensure your credit score and debt to income ratio are looking good. These are the two most important factors that lenders will consider when reviewing your loan application. Make sure your credit score is in fighting shape by taking the following steps:Request a copy of your credit report. Review it for any errors or mistakes, such as missed payments and inaccurate balances. Report any errors to the credit bureau, as fixing these errors can have a huge impact on your score. Focus on paying down loans that have a high credit utilization ratio (the ratio of your outstanding balance vs your credit limit). Paying these down will help your overall credit utilization ratio and improve your score.Request higher credit limits. Requesting higher limits will help improve your credit utilization ratio as well.Commit to full and on time payments. Making full and on time payments is a major contributor to a healthy credit score.Resist opening other accounts. Any other accounts that you may be looking to open, such as another credit card, will trigger a hard inquiry on your credit. This can negatively affect your score in the short term, so wait until after you purchase your new car to do so.It’s also good to have a realistic idea of what you can afford every month. The general rule is to spend less than 10%-15% of your monthly income on your car payment, and less than 20% of your monthly income on your total transportation expenses (this includes gas and maintenance). Make sure that this works with your budget though–it’s always a good idea to sit down and work through the numbers to determine what will work with your personal finances.Get financing first.Before you step into a dealership, get pre-approved with a few different lenders. When you go to a dealership, it can be very confusing. You will try to negotiate the price of your new car, the fees, and the value of your trade in. If you do not have to think about negotiating financing as well, it will help you to stay focused. If the dealer wants you to use their financing, you already have numbers that they will have to beat.Take advantage of the incentives.Whether it is a rebate or 0% financing, look around to see what incentives are out there. Don’t compromise what you want for an incentive, but it can certainly sweeten the deal. Do the math to see just how much money these incentives can save you.Negotiate.When you settle on your car, it’s time to negotiate. It’s important to keep your eyes on the most important factor: the overall car price. Dealers often use monthly payments as a barometer for affordability, but don’t fall for it. They can make the offer seem more attractive by focusing on low monthly payments, but this often means you will pay more in the long run for the car. Instead focus on the price of the car and the fees.Read the print before you sign.When you have negotiated all the details and secured your financing (again, try to use a lender outside of the dealer to get the best rate), be sure to read the sales agreement thoroughly before signing anything. Make sure you are aware of all of the fees and terms that are outlined, and be prepared to walk away if it doesn’t seem right to you.Those are our tips for buying a new car and how to take advantage of dealer incentives.Buying a new car can be overwhelming, but doing your research and taking advantage of dealer incentives can really pay off.If you have a new car that you have already financed, you may be able to get a better car loan APR by financing. Get started with Auto Approve today to get a free quote–you could save hundreds (if not thousands!)GET A QUOTE IN 60 SECONDS

If you are having trouble making your car payments, you may have had the idea to pay off your auto loan with a personal loan. After all, it would give you the chance to change your APR and possibly lower your monthly payments. But is it a good idea?Let’s talk about the differences between personal loans and auto loans, and whether or not you should use a personal loan to pay off an auto loan.What is the difference between a personal loan and a car loan?Personal loans and car loans are two very different loan types. A personal loan can be used for just about anything, from a home project to debt consolidation. You can even use the money for a vacation (although we don’t recommend that). Personal loans are unsecured, which means they have no collateral. Lenders look at your credit score and financial history when determining whether or not they will give you a personal loan.Since personal loans do not have collateral, there is nothing for the bank to repossess if you fail to make payments. Instead the lender can take you to court to get their money back, and they can severely damage your credit. Defaulting on a personal loan can ruin your credit score for years to come. But because there is no immediate ramification for nonpayment, unsecured loans tend to come at higher rates since they are riskier for the lender.Personal loans typically do not require a down payment, but they often come with high origination fees (this is essentially the fee to do business with them).Car loans on the other hand are secured loans, meaning that the car itself acts as collateral. If you fail to make your payments, the bank will repossess your car. Since they are secured loans, car loans will typically have lower interest rates than personal loans.Car loans usually require down payments. They will also have origination fees, but they are usually a smaller percentage than those on personal loans.Should I use a personal loan to pay off an auto loan?There are times when it might be tempting to pay off your existing auto loan with a personal loan. This is especially true if you did not get a good car loan APR when you originally financed your car. Here are the pros of paying off your car loan with a personal loan:You may qualify for a lower APR.You can adjust your repayments period to make your monthly payments lower.You can remove a cosigner from your loan.But, there are also some cons to paying off your car loan with a personal loan.You may not find a lower APR.You may pay a lot in fees.You may end up paying more in the long run.Chances are you will not be able to find a lower interest rate for a personal loan than you will for an auto loan. But there’s good news–refinancing your car loan might be your best option. This gives you all of the benefits of paying off your loan with a personal loan, but chances are you will be able to find a much lower car loan APR than personal loan APR.How can I get a better rate on my car loan?Instead of getting an unsecured personal loan to pay off your car loan, you will be much better served to refinance your existing car loan. When you refinance, you are getting a new loan that will pay off your existing loan. The difference between refinancing and getting a personal loan is big: when you refinance, you get an auto loan, not a personal loan. This means the loan will be secured and you will get a much better rate. The best part is that refinancing is really easy–especially when you use a company that specializes in car loan refinance. Just follow these simple steps and start saving money immediately.Research.Do your research to find out which lenders will be a good fit for you. Ask around to friends and families to see if they have any lenders they recommend. Be sure to consider traditional banks, credit unions, and online lenders. You will not be able to compare specific rates and terms, but you can get an idea of what their average rates may be and how satisfied their customers are.Apply. Once you have selected 3-5 lenders, submit all of your applications in a fourteen day window. Credit bureaus give a fourteen day window where all applications will count as one hard inquiry on your credit report. This allows you to shop around without racking up a lot of hard inquiries (which will negatively affect your score). When you apply, you will need to have the following documents ready:A Photo ID, typically a driver’s ID or passport.Your vehicle’s information, such as the bill of sale, VIN number, make, model, and year of your car.Proof of income and financial history, such as pay stubs, banking information, and your credit report.  Proof of residence, such as a mortgage statement, lease agreement, or utility bill. Proof of insurance.This process is super easy if you use a company that specializes in car loan refinance, like Auto Approve. They have relationships with lenders across the country which means that they can get you the most competitive rates out there. They can help you handle the repetitive paperwork and make applying super easy.Compare.After you apply, you will start seeing offers roll in. Be sure to compare the following terms when determining what auto loan is best for you:Car loan APRRepayment periodFeesCustomer satisfaction ratingsAuto Approve can help you compare and decide what lender might be the best fit for you. Take all of these factors into account, but pay most attention to the car loan APR. After all, you will save the most amount of money by reducing your car loan APR. Sign and Save.Once you decide which car loan is the best fit for you, you can sign on the dotted line and start saving money. Your new lender will pay off your old loan (although it never hurts to call and make sure this happens without incident). You will need to alert the DMV of this change and call your insurance company, but after that you are all set. That’s why you should refinance your car loan instead of paying off your existing loan with a personal loan.Refinancing your car loan can be beneficial to you for many reasons. Lower monthly payments, a lower APR, and the ability to add or remove a cosigner are just a few. If refinancing your car loan sounds like a good move for you, don’t wait–get started with Auto Approve today and get your free quote!GET A QUOTE IN 60 SECONDS

If you’ve been trying to buy a car recently, you may be all too aware of how crazy the car market is. Whether you are looking for a new car or a used car, the wait times, prices, and increasing rates are making it an ordeal for many to get a new set of wheels. But that doesn’t mean it’s impossible to get yourself in a new car. Here are the best ways to navigate the current auto market.Why is it hard to buy a car right now?Demand for cars is at an all time high, while the supply of cars–both new and used–is at a low. This is causing both record prices and increased wait times for customers across the world. So how did we get here?Increased demandIn the past two years we have seen an increased demand for cars, both new and used. When the pandemic hit, many people saved money by not going on vacations and not spending money on entertainment. These savings combined with subsidy checks meant that people had money to buy things they needed, like a new car.Not only did people have a bit more money to spend, but interest rates were at an all time low. In an effort to keep the economy going, the Fed reduced interest rates to encourage spending. And this worked, albeit a little too well. All of this combined to create an increased demand for new cars.Decreased supplyAn increase in car demand was unfortunately coupled with a decrease in supply. The supply of new cars decreased for a few reasons:Many factories were forced to shut down or limit production numbers due to the pandemic.Supply issues with raw materials such as plastics and steel cause production to slow down.A shortage of microchips–used in cars for everything from navigation systems to window controls–slowed car production. Some experts think that 90-95% of the new car supply issue can be attributed to chip production.All of this meant that there were fewer new cars on the market, which affected the used car market as well. Used car demand increased for a few reasons:High new car prices drove buyers to less expensive used options. Lease drivers returned their leases less frequently so there was a smaller supply of used cars.Low supply and high demand creates inflation, which makes it more difficult to get a fair price on a car.High pricesWhen supply and demand are out of sync, inflation can occur. In 2022 inflation hit a 9.1% year over year increase–the highest it’s been since 1981. Inflation affects all parts of our economy (both in the US and worldwide), and the car market was no exception. In August 2022 new car prices hit an all time high. The average new car had a price tag of $48,301 according to Kelley Blue Book, which was up 11% from August of 2021. While used car prices are starting to normalize a little bit, they are still much higher than they should be. High interest ratesIt’s no secret that inflation is putting a major toll on our economy. That’s why in the beginning of 2022 the Fed began to raise interest rates. By raising interest rates, the Fed was hoping to slow down demand by making borrowing money more expensive. They were also hoping that high interest rates would encourage more saving and allow the economy time to cool off. This is the balance that the Fed is always hoping to strike. Longer Wait TimesIf you are looking to buy a new car, it takes a bit longer these days. All of these supply issues mean that production and shipping are taking more time, so customers are waiting many weeks and months longer than usual.Should I wait to buy a new car?There is no cut and dry answer for this, as it depends on your situation. Buying a car isn’t impossible right now, but it will require a bit more patience and research. If you have your heart set on getting a new set of wheels, we have some tips to help you in your quest.Here are our top tips for buying a new car in 2022.Be flexible.The more flexible you can be with your choice of car, the easier this process will be. Certain brands and models are experiencing longer wait times and higher inflation than others, so it is good if you can be a little flexible. It might take longer or be harder to get certain add ons, exterior colors, or features, so being flexible here will help you as well.Actively track car prices beforehand.The more research you do, the more confident you will be that you are getting a good deal. Using sites such as Kelley Blue Book and Edmunds will help you to determine how much you should be paying for your new car.Shop around for rates.It’s always important to shop for rates, but it is crucial to do so now. Look at different credit unions, online lenders, and traditional banks to get pre approved. This is not the time to get roped into dealer financing, which can be especially pricey. Taking the time to ensure that your credit score is in good shape can also pay off for you.Come with cash in hand.When rates increase, it’s more important than ever to pay for as much as possible with cash. A larger down payment will not only help you qualify for a better loan, but it will save you a lot of money in the long run.Know the value of your old car.One good thing about this situation is that your used car has never been more valuable. That’s why you should have a good sense of how much money your car is worth before you go to look for a new one. Chances are the dealership will try to lowball you when buying your old car, so you may be better served to sell your car privately.Those are our top tips for navigating the current auto market. If the time isn’t right to get a new car, consider refinancing your existing car loan. There's a good chance that you can find a car loan APR that is lower than your current rate. Using a company that specializes in car loan refinance can make this process quick, easy, and effective. You can get a free quote in just a few minutes, so don’t wait–contact Auto Approve today to get started. With a 96% would-recommend rating on LendingTree and an A+ from the Better Business Bureau, you know you are in good hands.GET A QUOTE IN 60 SECONDS

When you refinance a car loan, you can save a lot of money on your car payments. But how exactly does it work, and what happens to your old car loan when you refinance?Let’s talk about what happens to your old car loan when you refinance (and how refinancing can save you a lot of money!)What is car loan refinancing?When you refinance a car loan you are replacing your existing loan with a new loan, a loan that ideally has better terms and a better car loan APR. The new loan that you take out will directly pay off your old loan. Your old loan is replaced by your new loan so you only have one loan to pay off.Does refinancing a car hurt your credit?Your credit score is used by lenders to determine how fiscally responsible you are (and ultimately how likely you are to repay a loan). Your credit score takes five major categories into account:Your payment history. This is the most important category of your credit score and accounts for 35% of your score. This measures if you pay your bills in full and on time. Your amounts owed. This accounts for 30% of your credit score. This looks at how much money you owe compared to how much credit you have available to you. Your credit history length. This accounts for 15% of your credit score and looks at the age of your accounts. A longer credit history with longstanding accounts makes you more favorable to lenders. Your credit mix. This accounts for 10% of your credit score and looks at how healthy your credit mix is. A diverse portfolio with a mix of loans (like mortgage, student loans, and credit cards) shows that you can balance your money over several accounts.Your new credit. This accounts for 10% of your credit score and looks at any new accounts you may have opened and how many inquiries you have on your account. Since the accounts haven’t been around very long, your ability to manage them has not been proven.When you refinance your car loan, two of your credit score categories will be affected: your credit history length and your new credit. Having a new account will shorten your credit history length and show a new account on your report, both of which will cause a dip in your score.But this dip will not last very long–most likely it will affect your score for about a year. And this will pale in comparison to the benefits for refinancing. Refinancing your car loan to make your car loan payments more manageable will actually help your credit score in the long run. When you are in the process of refinancing, every application you send will trigger a hard inquiry on your credit report. Having a lot of hard inquiries on your credit report may cause even more of a decrease in your credit score. That’s why it’s important to send out all of your applications in a short timeframe. Credit bureaus will give you a fourteen day window to shop around. This means that if you send out all of your applications in that fourteen day time period it will only trigger one hard inquiry on your credit report.When should you refinance a car?Refinancing your car loan has a lot of benefits. It can help you lower your monthly payments, lower your interest rate, and even allow you to add or remove a cosigner from your car loan. If any of the following apply to you, it’s time to consider car loan refinancing.Your credit score has increasedIf your credit score has increased since you initially financed your car, there’s a good chance you will qualify for a lower car loan APR. The car loan APR you are offered will depend on:Your credit scoreYour debt-to-income ratioThe balance of your loanThe market ratesYour credit score is the most important factor in this, so if your score has increased in the months or years since you originally financed, there’s a good chance you can find a lower APR. There are a few reasons why your credit score may have increased since original financing:You paid down some of your debtsYour lines of credit increasedYou made consistent, full, and on time paymentsYou had a negative event expireYou disputed errors on your credit reportWe recommend consistently checking your credit report and credit score to monitor changes. And if your score has increased, you might want to think about refinancing your car loan.The market rates have decreased.If the market rates have decreased since your initial financing, there’s a good chance you can secure a lower car loan APR. The APR that you are offered is based on your finances as well as the market rates, so a decrease in market rates can mark a big decrease in your car loan APR.You could use some breathing room.When you refinance your car loan you can adjust your repayment period. You can shorten your repayment period, which will allow you to pay off your loan faster and save you money overall, although it will make your monthly payments a bit higher. You can also choose to lengthen your repayment period. By lengthening it you are spreading out your payments over a longer period of time. This means that while you will be paying interest for a longer period of time (and therefore spending more money over the course of the loan) you will significantly decrease your monthly payments. You want to add or remove a cosigner.You may want to add a cosigner onto your loan. Adding a cosigner with a good credit score can help you secure a lower car loan APR. Adding a cosigner on who doesn’t have any credit, such as your child, can help them to build credit. Either way, adding a cosigner is only possible through refinancing. Conversely, you may wish to remove a cosigner from your loan. Again, the only way to adjust and remove a cosigner is to refinance your car loan.That’s what happens to your old loan when you refinance–and why you should think about car loan refinancing.If car loan refinancing seems like a good idea, then don’t wait any longer! Our experts are ready to help you start saving money. And with a 96% would-recommend rating on TrustPilot, you know you are in good hands! So get your free quote today!GET A QUOTE IN 60 SECONDS

The temperatures are dropping and the leaves are changing color, which means one thing: it’s perfect motorcycle weather. Now is a great time to get out there and enjoy the fall on two wheels. And if you are thinking about buying a motorcycle, now is a great time to do so.Whether you are looking to buy your first motorcycle or you are a seasoned rider looking for a new bike, we’ve got you covered.Here’s everything you need to know when looking to buy a motorcycle.What do you look for in a motorcycle?There are a lot of things you need to consider when you are selecting which motorcycle is right for you. Here are some questions you should ask yourself.What is your price range?How will you pay for it?What is your intended use? For commuting, for distance, for off roading?Are you looking for a new or used motorcycle?If used, what condition are you looking for?Are you comfortable working on your motorcycle? Do you know where you will go if not?Make sure you consider all of these questions before committing to anything. But if you are comfortable moving forward, your next step is to decide what bike is right for you.The bike styleThere are a few different types of motorcycles out there, all of which have different advantages and disadvantages. Consider how you will be using the bike to determine which makes the most sense for you.Standard: All purpose bikes that have an upright riding posture and are best for beginners and commuters. These are not ideal for long distance rides or off roading. (i.e. Honda Nighthawk)Cruiser: Heavy bikes with a relaxed riding position and a V-twin engine that are best for taller riders who are looking for comfort. These are not ideal for smaller riders. (i.e. Harley Davidson)Touring: Touring bikes are large bikes built for long distances, characterized by heavy engines and room for luggage. These are not ideal commuting bikes. (i.e. BMW R1200GS)Sport: Smaller bikes that are built for speed and performance. They have a forward-leaning riding position and are built to be aerodynamic. These are not ideal for beginners. (i.e. Honda CBR)Dual Sport: Lightweight bikes that are built for off-roading. They are not ideal for distance riding. (i.e. Suzuki DRZ)All motorcycle styles are quite different, so it shouldn’t be too hard for you to determine what style is right for you and your lifestyle.Engine sizeIn addition to the style of bike you will need to determine the best engine size for your needs. Most styles come in a variety of engine sizes, and those on the smaller end (like 250 cc or 500 cc) tend to be less to insure and are better suited for beginners. The reputationBe considerate of a brand’s reputation when buying a bike. By this we mean:Is the bike reliable?What parts tend to have issues?Where can you get parts and get the bike serviced?Looking online and on forums is a great way to get a sense of how a bike will be. You want to read as much as possible to get a good sense of whether or not this is the right motorcycle for you.What are the steps to buying a motorcycle?Once you determine what you are looking for in a motorcycle, you can start looking around. You will have to decide if you are looking for a used bike or a new bike first and foremost. There are some pros and cons to both new and used bikes, so consider what will work best for you.The pros and cons of a new bike.With a new bike, you have the security of knowing that you are the first rider. There is no mysterious history to be weary of and no worries of improper repairs.You also get the peace of mind of a factory warranty that comes standard with new bikes in case any problems should arrive. You will also be able to finance your bike, which may be preferred for you.On the other hand, you will certainly be paying more money and the bike will be devalued as soon as it leaves the lot.The pros and cons of a used bike.Many riders prefer to get a used bike instead of a new bike. Used bikes are typically a better value, as you will miss out on the sharp depreciation of the first few years. You can also choose to work on your bike yourself as it will not be under warranty anymore.  But the flipside of this is that you do not truly know the bike’s past and there might be more issues with the bike. Steps to buying a new bike.Find a dealer. If you are buying a new bike, it will be easy to find a dealership that has what you are looking for. Look for a dealer with a good reputation and good customer reviews. If you can, try to visit at least two dealers that have what you are looking for so that you can compare the rates and terms. Negotiate the terms. Question all of the prices and negotiate as much as you can. There is usually wiggle room on the MSRP and the fees such as the destination charge and the assembly charge.Decide how you will pay. Are you paying in cash or are you financing? Paying in cash will get you a better deal overall and give you more negotiating power, but if you have good credit then financing shouldn’t be an issue. Pick a lender. Shop around for financing before you get to the dealership. Dealer financing is notoriously more expensive. Instead, get pre approved and think about how much you can comfortably afford every month. Making a significant down payment (at least 20%) will greatly help your monthly payments. Pick a repayment period that is between 2-5 years; the shorter your repayment period is the higher your monthly payments will be but the less you will pay overall.Register and insure. After you sign on the dotted line, you will need to register and insure your new bike. And that’s it! You can enjoy your new wheels immediately (after picking up the right safety equipment, of course).Steps to buying a used bike.Find your bike. If you are looking for a used motorcycle, you may need to do a bit more research. Craigslist, Motorcycle Trader and eBay are all great places to start. Do your research. Know what the Kelley Blue Book value is before you see the bike so you know you aren’t getting scammed. The more familiar you are with the bike, the better off you will be.Be safe and smart. If you decide to see a bike, be sure to take safety precautions. Meet in a public place and bring a friend along. Assess the condition. Be thorough when looking at the bike to make sure it is in good condition. If you notice any of the following, proceed with caution: high mileage, salvage titles, excessive wear, or difficulties starting, running or stopping.Pay in full. If you are comfortable with the condition of the bike and feel that it is fairly priced (you can always try a little haggling!), then be prepared to pay in full with either cash or a cashier’s check. And remember to get a signed receipt.Register and insure. You will still have to get it registered and insured, but after that it’s all yours.What do lenders look for when buying a motorcycle?If you are looking to get a new bike and get it financed, lenders will take a few different things into consideration. They will look at:Your credit scoreYour debt to income ratioThe down payment you madeThe price of the motorcycleDepending on these factors the lenders will determine what motorcycle loan APR is appropriate. It is a good idea to make sure your credit score is in top shape before applying for financing. If you already have a motorcycle that is financed, you may be able to refinance your motorcycle loan and save a lot of money. By using a company that specializes in refinance, you can quickly and easily reduce your motorcycle loan APR and reduce your monthly payments drastically. If any of the following apply to you, it is definitely worth considering:Your credit score has improved since you first financedYour debt to income ratio reduced since you first financedThe market rates have decreased since you first financedAnd that’s everything you need to know about buying a motorcycle.When buying a motorcycle you want to take your time and do your research to make sure you are fully prepared. A motorcycle is a big responsibility but it can lead to some pretty great adventures. If you are considering refinancing your motorcycle loan, get in touch with Auto Approve today to get a free quote. It’s quick, easy, and can save you A LOT of money. So don’t wait, contact Auto Approve today!GET A QUOTE IN 60 SECONDS

Driving off in your new leased car is one of the best feelings. The new car smell, the quiet engine, the security of knowing that you are the first owner. But when your lease is up, you might be wondering what you should do now. Should you keep it, sell it, or trade it in? And if you decide that you want to buy your car, how do you go about it?Here’s how you can buy your car when your lease ends.What is the best thing to do at the end of a car lease?When your lease ends you have three options. You can return your car and get another lease, you can return your car and buy a different car elsewhere, or you can buy your leased car from the dealership.Keep LeasingThis is the simplest option for most people and is the most preferred option for dealerships. This allows you to simply return your car and start a new lease with a new car. The dealership will then sell your used leased car and make a good profit. If you choose to return your car, you will need to make sure that your lease is in good standing. This means that you have not gone over your mileage allotment (usually 12,000-15,000 miles per year) and that your car is in good condition. If your car is a little banged up or you have put too many miles on it, you may be required to pay additional fees.Lease Turn-InYou can also choose to simply turn in your leased car and not get another lease. Your lease simply expires and you are free to find another car elsewhere. When you return your lease to the dealership they will inspect your car for any excessive wear, dents or dings to the exterior of the car, and any stains or tears on the interior. You will most likely have to pay fees if there is any damage or if you have gone over the mileage limit. Lease BuyoutIf you love your car and don’t want to part with it, you can choose to buy your lease. You can typically buy your car at any point during your lease, but you will need to consult your contract to find out what the lease purchase price will be.How do you decide to buy a car at the end of a lease?If you are trying to decide if a car lease buyout is right for you, see if any of the following apply to you. You like the car.Buying your lease can be as simple as wanting to keep your car. New cars are expensive right now, and even the used car market is pretty pricey, so getting a new car might not be ideal right now. If you like how your car drives and hate the idea of shopping around for a new car, a lease buyout might be a great option for you.You are over the allotted mileage.Lease agreements come with a mileage limit that you must consider. They typically range from 12,000 to 15,000 miles per year, and if you go over that allotment you will be charged a fee per mile. This fee can range from $.15 to $.30 per mile, which can add up to quite a lot at the end of your lease. If you have a three year lease and you exceed your mileage by 3,000 miles per year at $.20 per mile, that’s an extra $1800 you would owe. By buying your car lease you can apply this money to your buyout as opposed to simply paying it in fees. Do the math to determine if turning in your car makes financial sense.You have excessive wear and tear.Lease agreements will also have fees for excessive wear and tear. This will vary slightly from dealer to dealer, but typically the following are considered to be excessive wear and tear:Large scratchesBumper damageMismatched colorSanding marksBody damage such as dings and dents that are more than 2 inches in diameterTears to the interior that are more than ½ inchStains to the interiorDepending on the extent of this damage, the dealership may charge you pretty high fees. It might make more sense for you to use that money to buy your car instead of giving it to the dealership in fees.Your car is worth more than the buyout price.Sometimes things just make good financial sense. So if your car is worth more than the buyout price, it’s a good idea to buy out your lease. If you like the car and want to keep it, great! If not, you can sell it and make a profit off of it. Check Kelley Blue Book or Edmunds to see what your car is worth before returning your lease.This is especially true right now if you leased your car in 2018 or 2019. In 2022 the average trade-in value for a leased 2019 car was 33% higher than the residual value of the car listed in the contract. The demand for used cars right now has in turn increased the trade-in value, making your car worth a lot more than you might realize. Be sure to check and do your research before turning your leased car back over to the dealership.How does a buyout work with a lease?If you decide that a lease buyout is right for you, there’s good news–it’s actually super easy. Here are the simple steps you need to take to buy out your lease.Call your leasing company to determine the purchase price.The first step to buying out your lease is determining exactly what the purchase price will be. The lease buyout price will be calculated as following:The residual value of the car.FeesSales TaxThe residual value of the car will be listed in your lease agreement. This number is based on your car’s expected depreciation over the life of your loan and is determined before your lease period even begins. It is almost always non-negotiable. It is best to call your leasing company to find out the exact amount a lease buyout will cost you.Secure financing for your buyout.Unless you have enough cash in the bank for the buyout, you will need to secure financing for your lease purchase. Not all lenders work with lease buyouts, so you will need to do your research to find the best lender for your situation. Do your research to compare rates and customer satisfaction ratings when trying to determine the best lender for your buyout.Finding a company that specializes in lease buyouts may be your best option. At Auto Approve, we work with lenders all across the country. That makes it easy to shop around and get the best rates for your car lease buyout. The car loan APRs that you are offered will be based on the current market rates, your credit score, financial history, and income. Be sure that all of these are in order before applying. Select 3-5 lenders to apply with and send in all of your applications in the same fourteen day window–this will ensure that they will all count as one hard inquiry on your credit report. For your applications you will most likely need:A Photo IDYour Vehicle’s InformationProof of Income and Financial HistoryProof of ResidenceProof of InsuranceAfter your offers start coming in you can compare them to see the best rates and terms. Auto Approve can help guide you through this process and help you select the best car lease buyout loan. Contact your insurance company and the DMV.When you buy out your lease you will need to call your insurance company to alert them that you are purchasing your lease. Leased cars typically have high insurance requirements, so you might be able to reduce your coverage at this point. Additionally you will need to check your state’s DMV to determine how to change the title. If you use Auto Approve, we can help you with this!And that’s it! After you complete the paperwork your leased car will belong to you officially.That’s how you can buy your leased car (and how Auto Approve can simplify this process for you!)Buying your lease can be a great option for a number of reasons. Whether you want to avoid unnecessary fees, you don’t want to deal with the hassle of buying a new car, or you just really like your leased car, a car lease buyout can be the answer you are looking for.Buying out your car lease with Auto Approve couldn’t be easier. From filling out applications to handling the DMV paperwork, we’ve got you covered. And with a 96% would-recommend rating on LendingTree, you know you are in good hands. So don’t wait to buy the car you love–contact Auto Approve today!GET A QUOTE IN 60 SECONDS