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When your kid first gets their driver’s license, it’s a bittersweet moment. You are proud that they are growing up and have all of the freedoms that come with that, but on the other hand, you are terrified. Will they drive safely? Will they be distracted? Will they go where they say they are going to go? The questions and the worries are endless.One way you can get some peace of mind is to buy your kid their first car (if you can afford it). This might be especially important if you live in a rural area where having a car is an absolute necessity. So today we are talking about the ins and outs of buying your kid their first car.Here’s everything you should know when it comes to buying your kid their first car.Should parents buy their kids their first car?There’s a chance you are wondering if you should even buy your kid their first car. While this will depend very much on your financial state, there are pros and cons to this. Buying your kid their first car is helpful because:You can most likely get them a safer car than they could afford on their ownThey most likely don’t have credit, so you can help them with financing It gives them the opportunity to save for other things, such as education or the additional costs that come with owning a carWhile these are all great reasons to buy your kid their first car, there is one glaring disadvantage: Kids who do not buy their own first car might not take the best care of the car. When people have a personal investment in something, they tend to take better care of it. There is a pride that comes with working for something, and if you buy your kid their first car, they might not experience that.There is no right or wrong answer when it comes to this question. Some parents might choose to buy their kid their dream car, while others might encourage their kid to save and buy their own car. Others might suggest that they split the car costs and meet in the middle. Only you can make the decision that is right for your family. Should a first car be new or used?Again, this will depend on your financial situation. There are a lot of benefits to getting a new car for your kid. The car will last longer, and will most likely have better gas mileage and be safer. It will have the latest technology as well, which I’m sure will make your kid happy. And if you choose to finance it with your kid, you can help them build their credit, which is invaluable at a young age.But new cars come with a high price tag, especially today. And with the high rate of teen accidents, a new car might not be the best idea. In fact, the risk of an accident is higher among 16-19 year olds than any other age bracket. So there’s a chance a new car won’t make it out of your teen’s grasp unscathed.You will likely find a better deal on a used car, and the insurance will be less expensive. Considering the depreciation on new cars, buying used might give you more of a bang for your buck.Tips for buying your kid their first carIf you do decide to buy your kid their first car, there are a few things you should keep in mind.Safety MattersAs we said before, teenagers have the highest rate of motor vehicle accidents in the country out of any age group. This means that safety is at the top of the priority list.When looking at cars, be sure to check out the Insurance Institute for Highway Safety where you can see crash test scores and get a good indication of just how safe a vehicle is. Today’s new cars offer more and more high end safety features, but you will have to see what your budget allows. Set a BudgetWhen it comes to buying a car, it can be pretty easy to get ahead of yourself. Between the cost of the car, the add-ons, insurance, fees, and maintenance costs, there’s a lot to consider. That’s why it is so important to have (and stick to) a realistic budget.Here’s a tip: If you are looking to save some money every month so that you can afford a car for your teen, consider refinancing your car. You could save hundreds of dollars every month with a car loan refinance.Do Your HomeworkBe sure to research which car will be the best fit for your teen. Think about your teen’s needs and how much they drive. Will they be using it to drive to school and activities? How many miles do you expect they will put on the car every week? Is there any technology that you really want? (Think entertainment systems, blind side protections, etc.)When you have a loose idea of what you are looking for, be sure to shop around your community as well as online. Here are a few good sites to check out when researching and comparing deals:Edmunds Car Finder Consumer ReportsKelley Blue BookJ.D. PowerYahoo! AutosThink About the Gas MileageEven if you decide to buy your kid a car, chances are they will be paying for gas. And we all know how expensive that can be (especially now). That’s why you want to think about the gas mileage of the car you select. Selecting a car with good fuel economy will also help with the car’s resale value later on.And Think About the SizeIf you are looking for a car with good gas mileage, you may be tempted to get a small car. But you want to make sure the car you select will be able to protect your teen. If your kid does get into an accident, you want more than a tin can around them to protect them. You don’t want to go too big however. Not only do minivans and SUVs have a higher center of mass, making them more likely to roll over, but they can fit more people in them. You don’t want your teen to be tempted to have too many friends in the car with them–distracted driving is a major cause of teen motor vehicle accidents. You are best served to find something that is sturdy enough to stand up to an accident but still has decent gas mileage.Inspect it ThoroughlyBuying a used car may make more economical sense for you, but you will need to be careful. If you use a car dealer, avoid dealers with extreme sales and bad reputations. Used car dealers are very good at hiding damage and glossing over any issues a car may have, so you will need to be extra vigilant when looking to buy a car.If you choose to buy a used car, make sure you have it thoroughly inspected. When you initially look at the car, be sure to do it in the daytime so that you can see it in daylight. You want to see if there are any dents or repaint spots that may indicate that the car was in an accident. Here are a few other things to check for:First and foremost, test drive the car to see how it drives. Does it make any weird noises? Is there a lot of smoke coming out of the tailpipe? Does the engine sound ok? How does the transmission shift? These are all things to focus on during your test drive.Check out the steering and the suspension.Have all of the wheels removed and check the brakes, including the parking brake.Check to see if there are any computer errors.Check all of the fluids (you can tell a lot by the color of the fluids).Check all of the valves and hoses.Test all of the controls. Do the window switches work? Is the AC functional? These small repairs can be surprisingly expensive.Look for any body damage or rust, as these can be indications that the car was in an accident (and is hiding more damage that you can’t see.)Check for any signs of water damage, such as a mildew smell. See if there are any maintenance records or a CARFAX report. These reports and records may not tell you everything, but you can at least see what is recorded.Use common sense when assessing the car you are interested in. If you are not well versed in car maintenance and don’t exactly know what to look for, bring along a friend or family member who knows a thing or two about cars.And that’s what you need to know about buying your kid their first car.Buying a new car is always part exciting and part anxiety-inducing, and buying a car for your kid only intensifies those feelings. But we hope these tips will help you navigate your purchase and get your teen safely and affordably on the road.Remember: If you want to free up a little extra cash to make buying your teen their first car more manageable, Auto Approve can help you refinance a vehicle, and if you choose to lease a car for your child rather than buying, we can help with auto lease purchase if you want to buy the car at the end of the lease.GET A QUOTE IN 60 SECONDS

If you are having trouble getting a vehicle loan, getting a cosigner on your loan may be a great option for you. Or if your friend or family member is having trouble securing a loan, they might ask you to become a cosigner on their loan. While cosigning a loan might be a good move, it's a decision that should not be taken lightly. There are advantages and disadvantages for both the person seeking a cosigner AND the person asked to cosign.Here’s everything you need to know about cosigning a vehicle loan.What is cosigning?Cosigning for a loan is when you take on the responsibility of someone else’s debt. This means that you become 100% responsible if the original borrower cannot make payments anymore.Maybe your friend has pretty bad credit. They look around for a loan to buy their new car, but they are either unable to find a loan or unable to find a loan with a reasonable auto loan APR. One way for them to increase their likelihood of getting approved and getting a decent auto loan APR is to secure a cosigner. When a cosigner is used for a loan, the lender will look at the two applicants’ information together to determine the terms and the car loan APR. So if the applicant has bad credit (or no credit), the cosigner will shoulder some of the financial burden. The lender is more apt to give a better car loan APR, because the chances are higher that the loan will be paid back.There are advantages and disadvantages to securing a cosigner, so discussing this thoroughly beforehand is incredibly important.What are the pros and cons of cosigning?The Pro of Asking for a Cosigner: You Can Secure a Good Car LoanIf you have no credit or bad credit, a cosigner might be the only way you are able to get a car loan for yourself. The lender will not only consider your income and credit score, but will consider the income and credit score of your cosigner. The Pro of Becoming a Cosigner: You Can Really Help Your Loved OneIf a friend or loved one asks you to cosign, chances are they are having a tough time financially. Cosigning a car loan for them is a great way to help them out of a tight spot. By helping them secure a good car loan, you are helping them get a good car loan APR. And this will make their car loan payments more manageable. All of this can help them to build credit and pay their bills on time. If you trust your loved one and want to help them out, this is a great way to do so.And bonus: if the borrower pays all of their bills on time and in full, it can boost your credit score as well as theirs.Cons of Asking for a Cosigner: You are asking them to be financially responsible for youIf you ask a loved one to cosign, you should be positive that you will be able to make payments on your loan. Defaulting on your car loan will make your cosigner responsible for the entirety of your loan, so they will be stuck with a huge bill. If you are late with your payments or miss payments, you will hurt their credit score. In other words, your actions will have consequences for your cosigner. This can, and has, ruined many relationships. Be aware of this and proceed with caution.Cons of Becoming a Cosigner: It puts you at risks and decreases your borrowing powerAs we said above, when you cosign a loan you are taking on all of the responsibility of the original borrower. Late payments, missed payments, and defaults can all affect your credit score negatively. Should the borrower default, you may be open to liens, wage garnishment, and lawsuits.Cosigning will also affect your borrowing power. This debt will be added into your debt-to-income ratio, which may affect the loans you are offered if you need to secure a loan for another reason.Can you refinance a car with a cosigner? If you already have a car loan but don’t have a great car loan APR, you may be wondering how to refinance a car with a cosigner. Or, you may be wondering how to refinance auto loan to remove cosigner. Either way, Auto Approve has you covered.It isn’t possible to simply add or remove a cosigner to an existing loan. This is because each car loan has terms and a car loan APR that depends on the finances of the applicant (or applicant). In the eyes of the lender, adding or removing someone from the equation will affect the likelihood that the loan will be paid back in full.Refinancing your existing car loan with Auto Approve is super simple. Just follow the steps below to refinance your loan and either add or remove a cosigner.If it seems like car refinancing might be a good idea for you, let’s go over how to start the process of refinancing. It is pretty hassle free, especially when you enlist Auto Approve to help you compare rates.Do Your Research. Go online and research different lenders to decide where you would like to apply. Look at customer satisfaction ratings and read reviews to get an idea of what each lender is like. If you use a company that specializes in car loan refinance, like Auto Approve, you can save yourself a lot of time and energy on this part.Prepare yourself. Make sure your credit report is accurate and report any discrepancies to the bureau. You want your score to be as high as possible when you apply. Also be sure to check your existing loan to determine if there are any prepayment penalties for which you will be responsible.Decide and apply. Select three to five lenders and apply for car loan refinance. You will need to submit some documents with your application, such as a photo ID, proof of income, proof of residence, vehicle information, and proof of insurance. Your co borrower will need to provide this information as well.Compare offers. Look at all of the offers and consider the car loan APR, the repayment period, the customer satisfaction, and the fees and penalties. See what make the most sense for you (Auto Approve can help with this as well)Sign and save. And that’s it! Refinancing really is that quick and easy. And that’s what you need to know about cosigning a vehicle loan.Thinking about refinancing your car? Get your free quote from Auto Approve today to get started!GET A QUOTE IN 60 SECONDS

Buying a car should be straightforward–pick out a car you like, buy it, and drive it, right? But there’s a lot more to the process than just that. Today we are talking about the car ownership rules that no one tells you about, and what you need to know when it comes to buying, maintaining, auto refinancing, and selling that new ride of yours. Here are the car ownership rules you should know.What to Know About Buying a CarWhile buying a car is an exciting time, it may not be as quick and straightforward as we wish it was. Here are some tips to keep in mind when buying a car.Patience is KeyWhile shopping around can be fun at first, it quickly loses its luster after you have a few deals that don’t work out. This makes it easy to get panicky and jump the gun on what might not be a great deal, or what might not be the car that you truly want. Try not to fall into the trap of impatience. It will lead you to either buy a car you don’t love or end up in a bad financing arrangement. It’s true that you can't sit around waiting to pull the trigger on a good deal (especially in today’s competitive car market), but you need to strike a balance. Wait to find a car that you will truly be happy with (you might have to compromise slightly re: that competitive car market), but don’t make any decisions out of panic or fear of missing out.Use the 20/4/10 Rule to See What You Can AffordWhen you are looking to buy a car, make sure you have a realistic idea about what you can afford. A good way to determine this is to use the 20/4/10 rule. This means you should make a 20% down payment on a four year car loan and pay no more than 10% of your monthly incomes on transportation (that includes the cost of gas). Using this rule can ensure that you don’t overextend yourself.Leasing and Buying are Both Great OptionsPeople tend to have a preference when it comes to leasing and buying. If you have always leased, the prospect of buying might seem overwhelming, and vice versa. But it might make sense for you to switch to the other side depending on your situation. Leasing a car might make sense if:You want the lowest monthly paymentsYou don’t drive a lotYou don’t want to worry about maintenanceYou like getting a new car every few yearsYou don’t want to worry about selling your carYou want to maximize business tax deductionsBuying a car might make sense if:You want to have an asset at the end of the payment periodYou like to work on your own carYou want to customize your carYou drive a lot (and would exceed the mileage limits on a lease)Look at your finances and your driving patterns to see what makes the most sense for you. And keep in mind that if you decide to lease, you can always purchase the car along the way with an auto lease purchase loan.Make Sure Your Credit is in Good Shape Before Applying for FinancingYour credit score is the most important factor (that you can control) when it comes to the car loan APR you will be offered. So it is very important to make sure that your credit score is in the best shape possible before you look to buy. To increase your credit score, commit to the following:Make full, consistent, on-time payments Set up auto pay on your billsPay down debtAsk for higher credit limitsCheck your credit report for errors and inconsistenciesThese simple things can increase your credit score dramatically, securing you a better car loan APR and saving you a lot of money in the long run.What to Know About Owning a CarYou Need a Good Maintenance ScheduleYour car will perform at its best when it is well maintained. Creating (and sticking to) a reasonable maintenance schedule will help lengthen the life of your car. This will keep your car on the road longer and allow you to sell it for more money later on if you choose to do so.Here are a few things you should include on your maintenance schedule:Change your oil every 5,000-10,000 miles (check your owners manual)Replace your cabin air filter once a yearReplace your fuel-air filters once every two yearsChange your oil filter at every oil changeChange your engine air filter every 15,000 to 45,000 miles (huge variance, we know, but this depends on where you live and how much you drive)New Cars Usually Don’t Come With Spare Tires AnymoreThere is a new trend with new cars to not include a spare tire. Instead they include a sealant and an inflator kit. Prepare for this by becoming familiar with how to use the sealant and inflator kit, and if your car does have a spare tire, consider a practice run in changing it.You Can Refinance At Any TimeIf your car is financed, there is a chance you are overpaying every month on your car payment. There are a number of reasons this may be the case:You got talked into a bad deal at the dealershipYou didn’t have great credit at the time of financingThe market rates were high when you originally financedOr maybe your monthly payments are overwhelming. Perhaps your income has decreased or your monthly expenses in general have increased. Whatever the reason is, refinancing might be a good move for you. And the good news is that you can refinance your car at any time. While experts generally recommend waiting six months to pursue refinance (to give your credit score a chance to recover), you can refinance your car loan at any time. What to Know About Selling a CarSelling your car can feel overwhelming, but it doesn’t have to feel that way. Here are some helpful tips to help you sell your car (safely).Research Your Car’s ValueIt can be difficult to value your car without letting your emotions or preferences get in the way. But using online valuation tools is a good place to start. Using websites such as Kelley Blue Book or Edmunds will help you gauge the value of your car and the condition. Try to assess your car honestly and categorize it following the guidelines below.Excellent Condition. Your car looks new and is in excellent mechanical shape. Cars in excellent condition are rare, making up about 5% of the used car market. Good Condition. Your car is free of major defects and problems. Most cars for sale will fall into this category. Fair Condition. Your car has some mechanical or cosmetic issues. Poor Condition. Your car isn’t in good shape and is running poorly. Your car is most likely in good or fair condition depending on how old it is and how much you drove it. Consider how many miles the car has and if there are any recurring issues, then use the online tools to determine your vehicle’s market value.Prepare For the SaleTo get the best price for your car you want to be prepared. Be sure to: Gather all of your service records.Give your car a good cleaning, both inside and out. Maybe even wax it and polish it before you take your pictures. Check that all lights are working.Check the oil and other fluids.Check the tires.When you have done all of that, you are ready to list the car for sale. AdvertiseList your car in a number of different places and use word of mouth as well. Facebook Marketplace, Craigslist, and Auto Trader are great places to start online. Tell your friends and family to spread the word as well. Also consider taking out an ad in your local paper.Show Your CarPotential buyers will more than likely want to test drive the car ahead of time. Here are some tips for staying safe while showing and selling your car:Do the test drive in a public placeBring a friend or family member along. If you choose not to, be sure to tell someone where you are going and who specifically you are meeting.Ask to see a photo ID and take a picture of it with your phone–they can watch you delete it when you are finished.Be sure to ride with them–never hand the keys to a stranger.Those are some car ownership rules that you should know.There is a lot to know when it comes to owning a car. From buying it to maintaining it to selling it, car ownership can feel a bit overwhelming. But we hope these tips help you to have the best experience with your new car as possible.And if you're looking to refinance a car, look no further than Auto Approve. With great low rates and an A+ from the Better Business Bureau, Auto Approve is a great choice for a fast and easy refinance.GET A QUOTE IN 60 SECONDS

Have you already tried to refinance your car, only to be rejected? If so, you may feel like you are missing out on the benefits of refinancing (like saving a whole lot of money). But all is not lost. If you were previously unable to refinance your car loan, you may be eligible now to do so. Here’s why you might be eligible to refinance your car now, even if you weren’t in the past.Why You Might Be Eligible to Refinance Your Car LoanYour Credit Score Has ImprovedA low credit score is one of the top reasons people are ineligible to refinance their car loans. Credit scores are important because they indicate to lenders how likely a person is to repay the money they borrow. Let’s look at the factors that make up your credit score:Payment history (35%) This category tells lenders if you pay your accounts on time, and if your payments are on time, full, and consistent.  Amounts owed (30%) This category tells lenders how much debt you are in. The accounts owed category calculates how much debt you are in compared to how much credit is available to you. This is called your credit utilization ratio, which measures the amount of money you owe to the amount of credit you have available to you. Lenders look for this ratio to be 30% or less.Length of credit history (15%) This indicates how long you have had your accounts open. Credit mix (10%) This section shows how diverse your portfolio is; a good mix of loans, credit cards, retail credit cards, mortgages, etc will help show lenders that you are able to balance having varying accounts open.New credit (10%) If you are opening new accounts, this indicates to lenders that there is variability in your debt. In other words, you may currently owe more money than your current report is reflecting. A change to any of these categories can significantly affect your credit score, and therefore significantly affect your loan refinance eligibility. This is particularly true if your score increase pushes you into a different credit score bracket:Exceptional (Super Prime): 800-850Very good (Prime): 740-799Good (Near Prime): 670-739Fair (Subprime): 580-669Very poor (Deep Subprime): 300-579If your credit score increases from 650 to 700, that can have a huge effect on your eligibility AND on the car loan APR you are offered. Your credit score has likely increased if you have done any of the following:Made consistent, full, and on time paymentsPaid off debt (reduced your credit utilization ratio)Had a negative event expire (such as a bankruptcy)Had an increase in your line of creditIf your credit score has increased, it is definitely worth considering an auto loan refinance.Your Income Has IncreasedWhen you apply for a car loan, lenders look at your DTI, your debt to income ratio. Do you make enough money to support the debt you are in? A high ratio may indicate to lenders that you are in over your head financially and are less likely to keep up on payments.An increase in income will reduce this ratio. So if you got another job (or a raise) since your initial refinancing application, you may now be eligible for a loan.Your Debt has DecreasedPaying off debt will not only help your credit score, but it will help lower your debt to income ratio as well. Just as an increase in income will lower your DTI, so will paying off debt. So if you have paid off some student loans, eliminated some credit card debt, or have just consistently been paying off your debt without taking on more, you may have lowered your DTI significantly. And this can make you eligible for auto refinance.Your Vehicle had Increased in ValueEven if everything about your personal financial picture is around the same, you may be eligible to refinance right now if the value of your vehicle has gone up, lowering your LTV, or loan-to-value. Right now, the price of new and used cars has gone through the roof, so your vehicle may be worth more than you know. Get a free quote from Auto Approve or look up your car in the Kelley Blue Book to find out more about your vehicle's value and how it may have affected your eligibility for refinance.Why You Might Not Be Eligible to Refinance Your Car LoanWhile there are some things that may make you eligible to refinance your car loan now, there is still a chance that you are not eligible.Your Credit Score Has DecreasedIf your credit score has decreased, you will most likely not be eligible for car loan refinance. And if you are eligible, you might not qualify for a good car loan APR. It is a good idea to work on improving your credit score before applying.Your Income Has DecreasedIf your income has decreased due to a change in jobs or another reason, you may not be eligible for car loan refinance. This means your DTI has increased which makes you a less desirable loan applicant.Your Debt Has IncreasedSimilarly, increasing your debt will increase your DTI ratio and make you a less desirable car loan applicant.Your Car is IneligibleLenders have requirements when it comes to the vehicle you will be refinancing. Typically the older the car is, the less inclined a lender will be to refinance. If a person is unable to pay their loan, the lender is entitled to take the car as collateral. In this case, they will need to be able to sell the car to recoup their losses. So if the car is older and/or has a lot of miles on it, they will not be able to get as much money for the car.Each lender will have varying vehicle requirements, but they usually require that the vehicle have less than 125,000 miles on it and be less than 12 years old. They are ultimately concerned with your vehicle’s loan-to-value ratio, which is the balance of the loan compared to the value of the car. If your loan is $15,000 and your car is valued at $15,000, your LTV is 100%. Your car will depreciate in value as time goes on, and you want your loan balance to keep pace with that. A RateGenius survey from 2015 to 2019 found that 90% of approved applicants had an LTV of less than 123%. However, as we mentioned above, used car values have been on the rise in the last year or two.Your Loan is IneligibleIf there isn’t a lot of time remaining in your loan, or if the balance isn’t large enough, you may not qualify for a car loan. Lenders will not find value in taking on a small loan, as they will not make much in interest. Each lender will vary in their guidelines.Why You Should Refinance Your Car Loan with Auto ApproveIf you think you may be eligible for a car loan refinance, consider refinancing with Auto Approve. Auto Approve specializes in car loan refinance and has relationships with lenders across the country. This means that they can get you the most competitive rates (which means they can save you the most amount of money).  Why else should you consider Auto Approve for your car loan refinance? We take refinancing personallyWe know how overwhelming the thought of refinancing can be, and you may feel like you don’t even know where to start. And we get it. That’s why we give you a real person to guide you through the process. Just read our reviews to see how much our customers love working with our refinance specialists. We don’t waste timeOne of our top compliments from customers is about our fast turn around. We know that your time is important, so when you contact us we make sure to get to work right away. We have great relationships with lenders around the country, so you can get great offers–fast. We can help you decide on a loan and get all of the paperwork done quickly. We can even handle the DMV paperwork. Using Auto Approve will streamline the refinance process and save you a lot of time (and money!)We shop around for the best dealsThere are a lot of lenders out there, from credit unions to traditional banks to online lenders. It can be overwhelming to know where to start. At Auto Approve, we can handle this for you. We already know which lenders will be the best match for you and can provide the best deals. So don’t waste your time on endless comparisons–let Auto Approve handle this and simplify the process for you.We never markup prices–everAt Auto Approve, we never add markups or hidden fees. We believe in passing the savings right on to you, which is why we never inflate our prices or charge extra.That’s why you might be eligible for car loan refinancing even if you weren’t before, and why you should consider car loan refinancing with Auto Approve.If you haven’t been able to refinance in the past, you may be eligible now to do so. An increase to your credit score, income, or a decrease in debt could make you eligible for a low car loan APR and save you a lot of money in the long run. Get your free quote to get started today!GET A QUOTE IN 60 SECONDS

It’s the hot topic of conversation lately because it is impossible to ignore. The price of everything these days is just climbing and climbing, while we are all left scrambling to fit these higher prices into our budgets. We know that inflation is affecting everything in the economy, but even the price of used cars has skyrocketed. Here we are talking about why used cars are so expensive right now and what you can expect in the future.Why are used cars so expensive right now?In order to understand why used cars are so expensive right now, we need to look at why new cars are so expensive right now. And that is because of good old supply and demand.When the pandemic hit and shut the economy down, the demand for new cars plummeted. Everyone tightened their belts and started saving their money, in part because there was fear of what would happen to the economy. As a result, car dealerships ordered less and less new cars to have on the lot. Car manufacturers naturally slowed down their production in response.The Fed, in an effort to encourage spending, lowered interest rates during this time. Once things leveled off a bit, people felt more comfortable spending money, and the demand for new cars increased again. Under normal circumstances, the increased demand would cause a slight inflation in the car market but supply would soon catch up to demand.But the pandemic had other ripple effects, one of them being a disruption in the supply of materials. An increased demand for microchips from the tech world coupled with a sudden increased demand from the automotive world caused a shortage in chips that drastically slowed down new car production. In fact experts think that 90-95% of the new car supply issue can be attributed to chip production. But there are a few other factors at play, such as a shortage of workers at the car factories and supply issues with raw materials such as plastic and steel.With less new cars to sell and to buy, the used car market became heated. The owner of Preferred Automotive Group, Jay Leonard, commented on the situation to WANE, “It’s the same thing that’s going on with cottage cheese and houses and everything right now. I mean, it’s inflation and we’ve seen it in the car market… When you’ve got new cars that are not being built, and the only thing out there are used cars, the price is going to go up.”Since getting a new car is so expensive, drivers are not selling their used cars as frequently. Both GM and Ford noted sharp decreases in the rate of lease returns, with GM’s lease return falling from around 75% in 2020 to 10% in 2021.With the expensive price of gas these days and the growing concern for the environment, it’s no wonder that electric cars have had the most notable increase in demand. The price of used electric cars has significantly increased because of this. According to a recent price analysis the Nissan LEAF cost an average of $21,524 by the end of 2021, while just one year earlier it cost an average of $8,404.When will prices stop rising?It’s hard to say exactly when the prices might start regulating again, but experts agree that it will at least be for the rest of the year. The Fed has been steadily increasing interest rates throughout the year in the hopes of curbing inflation, and if that approach is successful we could see a reduction in prices. Production on new cars will also need to increase so that there is a higher supply of used cars. For new car production to start meeting the demand, the supply of raw materials such as plastic and steel will need to increase, microchip production must increase, and more workers must be hired. In other words, there are a lot of things that need to fall into place before prices can start to normalize.What does this mean for me?If you are in the market for a car, either new or used, there are a few tips that you can use to ease the buying process.Budget RealisticallyIf you are looking to buy a car, look closely at your budget to see what you can afford. It’s important to be realistic when doing this–over extending yourself will lead into debt down the road and can seriously hurt your credit score. If your monthly budget for car payments is very tight, look for other ways you can save some money every month. Some quick adjustments you can make include:Buying generic groceries instead of name brandBe sure to use your grocery store club card to save on everyday purchasesConsolidate trips out to conserve gasCanceling unused subscriptions (Netflix, Hulu, HBO, etc)Cut down on eating outUnfollow influencers (so you are less tempted to make impulse buys)You can also refinance your existing car loan (if you have one). Refinancing can save you a lot of money every month. By refinancing your car loan to a lower APR or lengthening your repayment plan, you can cut your monthly bill by hundreds. Making a budget is incredibly important for your financial well being and serves as a great way to save for things, such as a new or used car.Improve Your Credit ScoreIf you are looking to finance your car, focus on improving your credit score so that you can get the best deal possible. If your credit score is less than ideal, you will end up spending a lot more money in interest over the years. It is a good idea to wait until you get your credit score into fighting shape before you apply for financing. Here are some ways to improve your credit score:Make on time payments. This can improve your payment history section, which accounts for 35% of your credit score. Even 6-12 months of consistent, on time payments can make a difference in your score. Try setting up auto pay so you never miss a payment.Pay down debt strategically. Reducing your credit utilization ratio can help your score a lot. Your credit utilization ratio looks at your total debt to available credit ratio as well as your debt to available credit ratio for each account. This means that if you have a credit limit of $5,000 with a balance of $2,000, and another account with a credit limit of $1,000 with a $500 balance, you should prioritize paying off the $500 balance. Even though you owe less money on that account, your credit utilization ratio is 50%, as opposed to 40% on the other account. Request higher limits. Requesting higher limits on your credit accounts will help to reduce your credit utilization ratio. While lenders usually raise the limits for you, it doesn’t hurt to ask them directly for a higher limit. Itcan have a significant impact on your score.Check your credit report. Request your report and cross check it with your credit payments and histories. Did some payments get marked as late? Do the balances on your accounts add up? If there are any discrepancies, report them to the bureau. This will also give you a chance to ensure there are no unauthorized accounts opened in your name. You can check your credit report three times per year for free, once from each of the major credit agencies. Wait for a good deal Now more than ever it is important to hunt around and be patient. While you may be tempted to jump at the first car you come across and like, make sure you aren’t blinded by your desire for a new car (and your fear of not being able to find one). Kelley Blue Book advises that people looking for a new car keep their options open and consider different brands and models. You can still find good deals if you are patient and open to traveling.That’s the deal with used car prices and what you can do if you are looking to buy a car.Inflation is making everything so much more expensive, and is therefore making our lives so much harder. But that doesn’t mean that buying a new car is impossible, it just means it will be a little more work. Hunting around for a good deal and working to improve your credit score is now more important than ever.Refinancing your car is a great option for those looking to save money every month (which can also help you improve your credit score). It can give you some much needed breathing room so that you can save up for the car you’ve had your eye on (or whatever else you might be thinking about buying lately).So don’t wait any longer – start saving money when you refinance your car loan. Get your free quote from Auto Approve today!GET A QUOTE IN 60 SECONDS

Leases are a great option for a lot of reasons, particularly if you don’t have the time or inclination to work on your car when it is required. But what happens when your lease period is coming to an end and you’re not quite ready to say goodbye to your ride? Should you just give it up, or does it make more sense to buy out your lease?While every person’s situation is different, in many cases it may make sense to buy out your car lease.Today we are talking about the top four reasons to buy out your car lease with an auto lease purchase loan.Why do people lease instead of buy in the first place?There are a lot of reasons for why a car lease might be a good idea for you. Car leases are great if…You don’t drive a whole lot, and you definitely don’t want to keep up with repairs and maintenance.You like the idea of getting a new car every few years.You don’t want to deal with the hassle of selling a car.You are a business owner and you want to maximize tax deductions.And while these are all great reasons to lease a car, there are also a lot of reasons that you might want to buy your lease when the term is over. Four Reasons to Purchase Your Car Lease with an Auto Lease PurchaseReason #1: You Have an Asset at the End of Your Payment PeriodWhen you lease a car, your monthly payments are usually much lower than if you chose to purchase the car and finance it. And this is great for some people, but at the end of your lease payment period, you don’t really have anything to show for it. You do not own anything and you have to restart the process of leasing from scratch.But when you buyout your lease, you will ultimately own the car outright. When the financing payments end, you are the owner and can either sell it or drive it until it will not work anymore.Reason #2: You Can Customize your Car (Finally)Leasing a car means that you do not own it; the dealership does. And because of this, you cannot customize it or change it to suit your personality. No paint job, no bumper stickers, no tinting, no custom speaker system. If you love your car and dream of truly making it your own, a lease buyout is the perfect opportunity for you to do so.When you lease a car, you are often forced to use certain mechanics and parts when your car needs maintenance or repairs. If you purchase your car, you can go anywhere to have it serviced (or just do it yourself!)Reason #3: You Can Save MoneyThe end of a lease usually means you have to pony up for some fees. Those fees will vary based on your loan agreement, but usually include:The Disposition Fee. This covers the expenses of returning your car at the end of the lease. It pays for the car to be cleaned and for any minor repairs that the car may need. Typical disposition fees run about $350.The Wear and Tear Fees. You may be responsible for wear and tear fees. Slight wear is expected and factored into your monthly payments, but they will outline in your lease agreement anything that they think is excessive. The Mileage Fees. Car leases always have limits to the amount of miles that you can put on the car per year, usually 10,000 or 12,000 miles per year. Once you exceed that mileage limit, you will be subject to an additional fee. Every mileage fee is different, but they typically range between $.15-$.30 per mile. If you drive a lot, this can mean you owe a lot of extra money at the end of your lease. Even at a fee of $.20 per mile, a 3,000 mile mileage fee can run you $600.If you end up purchasing the car, you will not have to pay these fees. So you don’t need to worry about any wear and tear or any extra mileage fees. This can save you hundreds if not thousands of dollars in fees, money that you can use to purchase your car (giving you an asset in the end instead of just fees).Reason #4: You Can Save Yourself the Hassle of Finding a New CarFinding a new (or used) car right now is extremely difficult. There is a low supply of new cars for many reasons:Shortage of raw materials such as plastic and steelShortage of microchipsLabor shortagesShipping delaysOther supply chain issuesBecause of this shortage, the cost of a new car is very high, and the competition for new cars is fierce. This in turn created more of a demand for new cars as well. And all of this means that getting a new car right now is not easy and it is not cheap. So if you are not really looking to lease another car, buying out your car lease can save you from the hassle of finding a new car.How Can You Buyout your Car LeaseIf buying out your car lease seems like a good option for you, follow the steps below to start the car lease buyout process.Check your contract. See what your options are at the end of your lease. Some lease agreements will not allow you to purchase your car, so be sure that it is an option before you get too far into the process. You will need to tell your leasing company that you are planning on buying out your car lease. Some contracts have additional fees for buying out your lease. Shop around. Once you determine if you are eligible to buyout your loan, start shopping around for a loan (unless you have the capital to buyout your lease outright). You aim to apply with 3-5 lenders.Gather your documents and apply. Gather any and all paperwork you may need for your loan applications.You will most likely need the following:A Photo ID, such as a passport or driver’s license.Your vehicle’s information, which may include the bill of sale, VIN number, make, model, and year of your car.Proof of income and financial history, which may include pay stubs, banking information, and your credit report.  Proof of residence, such as a mortgage statement, lease agreement, or utility bill. Proof of insurance. Once you have all of your documents together you can apply to the lenders you selected. If you choose to use a company that specializes in car lease buyouts, like Auto Approve, they can help streamline the application process and save you from a lot of tedious paperwork.4. Compare offers. Once you apply, it won’t take long until you start getting offers. Compare all of the terms and see what works best for you. Be sure to consider the following:The car loan APR. This will depend on the market rates, your income, your credit score, and the vehicle you are purchasing. The repayment terms. How long is the repayment period? In general, the longer the repayment period is the higher the APR will be.The fees. Every loan agreement will have fees listed. Are there prepayment fees? How much are the processing fees? Are there any extra fees? The customer ratings. Before signing any paperwork, be sure that you check out the customer ratings of each lender. What are their current customers saying about them? Signing on with a company that has bad customer rating and bad customer service can spell major trouble later on.If you use Auto Approve to look for your car lease buyout loan, we can help you sort through the offers and decide what lender will be the best fit for you.5. Sign on the dotted line. Once you pick a loan offer it’s just a matter of completing the necessary paperwork. You will need to sign on for the loan and transfer the title. Visit your local DMV to determine what steps you need to take to complete the transfer. Typically the vehicle will be in the lender’s name until the loan is paid off.And that’s it! Buying out your lease is pretty simple, especially when you use Auto Approve to assist you. We can save you hours of paperwork and can guide you through any questions or concerns that you may have. Our experts know the ins and outs of auto lease purchases, and with a 96% would recommend rating on LendingTree, you can be sure that you are in good hands.Those are the top reasons you should buy out your car lease with an auto lease purchase loan (and how you can get the process started!)If you are interested in an auto lease purchase loan, don’t wait! Get a quote from Auto Approve today to get started!GET A QUOTE IN 60 SECONDS

You love your motorcycle, but don’t love paying for it. It’s another bill on top of the pile, and some extra breathing room would be REALLY nice right about now. 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 likely wouldn't hurt.Today, we are talking about how you can lower your monthly motorcycle payment.How do motorcycle loans work?.A motorcycle loan works the same way as a car loan. A motorcycle loan is a secured loan that can help you finance your new bike. A financial institution will pay for your motorcycle, and you in turn will repay them in monthly installments with an additional fee, interest, for the convenience of borrowing money. Your motorcycle is 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 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 APR which is based off of market rates AND off of your personal financial situation. Motorcycle loan APRs are determined according to the following: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. While the economy is a bit unpredictable right now, rates are still low. But they are expected to increase as the year goes on (which makes now a perfect time to refinance if you already have a motorcycle loan).Your 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.Your 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.How can I lower my monthly motorcycle payment?.Refinancing your motorcycle is the best way to lower your monthly motorcycle payment, and it will most likely save you money in the long run. When you refinance, you are paying one loan off with another loan. This new loan will have a different APR and repayment plan. 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.How do I refinance a motorcycle?If a motorcycle refinance sounds like a good idea to you, you may be wondering how to get started. The good news is it’s so simple! Here’s what you do: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 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 a quote from Auto Approve. At Auto Approve, we can 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. You should aim to apply to 3-5 lenders so that you have enough offers to compare. Compare your offers.  When the deals come in, the experts at Auto Approve can help you decide which is the best loan for you. You want to look at the motorcycle loan APR, the repayment period, the prepayment penalties, and the customer service ratings when making your decision.Sign and start saving. Once 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.And that’s how you can lower your monthly motorcycle payment.Refinancing your motorcycle is the best way to lower your monthly motorcycle payments. By refinancing with Auto Approve, you can save a lot of money every month so that you have more free cash for the things you love.You know you are in good hands when you choose Auto Approve for your motorcycle refinance. Auto Approve has a 96% would-recommend rating on LendingTree as well as an A+ rating from Better Business Bureau. With customer satisfaction like that, what do you have to lose? So don’t wait any longer – contact Auto Approve to get started. Get your free quote today!GET A QUOTE IN 60 SECONDS

Doesn’t it seem like the price tag these days is never the real price tag? Everything has added fees and hidden costs, so it is almost a guarantee that everything will cost more than you expect. And auto loans are no exception, whether you're buying a new car or refinancing your vehicle. There are always extra fees that rear their head and end up costing you an arm and a leg. So we’re giving you a much needed heads-up on what to expect when you are choosing an auto loan.Here are the fees that you should look for when deciding which auto loan is right for you.What fees are charged on an auto loan?Let’s discuss how auto loans are calculated, and then we can get into the added fees that come into play.You’ve picked out your car and you are so excited–it’s exactly what you want, down to the color and trim level. Once you have picked out all your add-ons, you have the total cost of the car. That is what your loan will be based on. The total amount of the car minus any down payment is the starting point for your loan. And then (drumroll please), enter the fees.The fees and taxes are added onto your principal (the tax is calculated based on the total cost of the car), which combined with your car loan APR, will determine your monthly payments. Here are some of the fees you can expect to pay for your car loan. These fees may also apply when you are refinancing your car, so if you choose to refinance, keep that in mind.TaxesYes, you have to pay sales tax on your new car. And that can add up to a lot of money. On a $30,000 car in a state with 6% sales taxes, that’s an extra $1800 for which you are responsible. This added cost gets added into your principal when you finance. Obviously taxes are non negotiable, so they are an added cost you will have to pay. You will not need to repay taxes when you refinance your car loan.Origination FeesOrigination fees are essentially the commission on a loan. They are also known as acquisition fees. They essentially pay for all of the paperwork that is required for financing. They are usually calculated as a percentage of the original loan, between 1% and 2% of the principal amount. On a $30,000 car with a 2% origination fee, it would be an extra $600 tacked onto your financing. While you might not be successful, it is definitely worth trying to negotiate on the origination fees. They are one area where the lender has some discretion, and it never hurts to ask. It might end up saving you a couple hundred dollars.Registration FeesAnd then there are the registration fees. You must pay a registration fee, title fee, and sometimes a plate transfer fee. These fees will depend largely on where you live, but you can expect them to run you somewhere around $150. These are non-negotiable fees.What should I look for when choosing a car loan?In addition to the fees that are charged, what else should you look for when choosing an auto loan? There are a number of factors that should come into play when deciding on car loan financing. Here are the top things to considerThe Interest RatesWhen choosing a car loan, the car loan APR is perhaps the most important thing to consider. Securing a lower APR is what will save you money. The interest rate that you are offered will be based on a number of factors, such as:Your credit scoreYour payment historyYour incomeYour debt-utilization ratioPrevailing interest ratesIf your credit score has increased since your initial financing, you may be eligible for a lower APR. If your income has increased, your debt utilization ratio has decreased, and market rates have decreased, you may also find that you are eligible for a lower car loan APR.If your credit score has not improved, aim to increase your score before refinancing. Your credit score is the single most important factor when lenders are preparing their financing offers. Look to make consistent, on time payments and request higher credit limits. Reducing your credit utilization ratio will also help immensely. Committing to increasing your credit score will help you secure a lower rate and save you money in the long run. Your Cash Flow and the Payment TermsWhen deciding on a car loan, you want to consider the payment periods as well. In general, lower APRs are tied to shorter repayment periods, while higher APRs are tied to longer repayment periods. The shorter payment period will mean that your monthly payments will be more expensive, while a longer payment period will mean that your monthly payments will be less expensive. You will have to figure out what works best for you. The Prepayment PenaltiesMany car loans have prepayment penalties built into them. This is to dissuade borrowers from paying off early (after all, the earlier you pay the loan off, the less interest you will end up paying and the less money they will make). If you are thinking that refinancing might be an option in the future, this may factor into your decision. These prepayment penalties can vary widely and can be quite expensive.The Customer Satisfaction RatingsYou should always pay attention to what other customers are saying. Are the lenders reliable and trustworthy? Are they responsive when there are issues? Check out websites like TrustPilot, Better Business Bureau, and Lending Tree to see what some of the most common complaints are. Top complaints for auto loan financers tend to include the following:Communication issues in regards to forbearance (when you pause your payments temporarily)Repayment options for forbearanceDelays from lender with regard 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 principalCommunication issues and a lack of transparency are usually at the top of the list when it comes to auto loan lenders. Be sure to consider this when making your decision.Why should I refinance my existing auto loan?If you already have a car loan, you may be wondering “should I refinance my car loan?” And the answer is: probably! But here’s how you can decide if a car loan refinance is right for you.Car loan refinance is worthwhile if any of the following apply to you:You got talked into dealer financing with your original loan (which have notoriously high car loan APRs)Your credit score has improved since your initial financingThe market rates have dropped since you initially applied (And they probably have!)You need some extra breathing room in your monthly budgetYou want to add or remove a co-borrower to you loanIf any of those apply to you, car loan refinance may be a great option to save money and make your life a little easier. But if any of the following apply to you, it might not be the best time to refinance your car loan.If your existing loan has heavy prepayment penaltiesIf you need a high credit score for another applicationIf your existing loan is less than six months oldIf your existing loan has less than a year leftIf your credit score has decreasedCar loan refinancing can save you a lot of money in the long run, and it’s a good idea to pursue it now before the car loan rates increase (which they are slated to do later this year). If car loan refinancing sounds like a good move for you, Auto Approve can help!Auto Approve specializes in car loan refinance, so you know you are in good hands. We have relationships with lenders all over the country, which means we can get you the most competitive rates out there. Our experts can not only guide you through the process of refinancing, but can help you compare offers and complete the paperwork. Auto Approve will even handle the pesky paperwork for the DMV! So if you are thinking about car loan refinance, contact Auto Approve to get started! You can get a free quote online–all you have to do is answer a few questions and you will have a quote in minutes. And that’s what you need to know about auto loan fees and how you can decide which car loan offer is right for you.Choosing an auto financing company is a big decision, because choosing the right one can save you a lot of money and a lot of stress. At Auto Approve, we specialize in refinancing so we know a thing or two about choosing the right offer. If you are looking to refinance, save yourself a lot of time and stress and let Auto Approve handle it! Get your free quote and get started today!GET A QUOTE IN 60 SECONDS

Let’s be honest; the economy is in a strange place right now. Inflation is still incredibly high and interest rates are increasing.It can be confusing to know what to do with your finances right now and you might be wondering, “Should I refinance my car?” You may be surprised to hear that now is actually a great time to refinance your car loan. Here’s why now is the perfect time to refinance your car loan and how you can decide if it’s right for you.Will interest rates go up in 2022?Before we go into what will happen to car interest rates in 2022, let’s talk about how we got here. In March of 2020, the Federal Reserve read the writing on the wall with COVID. They anticipated an economic shutdown, so they did what they could to curb economic collapse. And part of that plan included slashing interest rates. They did this so that people would be encouraged to spend their money and the economy would keep moving. The Fed lowered the fed funds rate, which is used as a benchmark for short term lending and other consumer rates. They lowered the rate from a range of 1% to 1.25% to a range of 0% to .25%. And this worked; it helped a ton of people who were strapped for cash. It also motivated people to spend their money and not sit on it. It encouraged everyone to keep active in our economy. While people were encouraged to spend, they were not necessarily working. COVID restrictions meant that many businesses had to close, while illness and quarantine kept open businesses short-staffed. This created an imbalance in the supply chain–an increased demand for items and the decreased ability to supply those items. This, coupled with a few other factors, caused extreme inflation. Inflation ballooned from the 2% target to over 8% by 2022.It became clear that intervention was needed to again curb an economic disaster. So the Fed announced earlier this year that they would be raising interest rates throughout the year to try to correct the supply and demand imbalance.Will car interest rates go up in 2022?So we know that the Fed is raising interest rates throughout the year. But what does this mean specifically for car loans? Most likely rates will increase as the year goes on, but there is good news! Since the car industry is notoriously competitive, car loan rates tend to be less sensitive to other rate hikes. This means that while they will likely increase, they will hopefully not be as drastic as other rate hikes.Since we know that interest rates will most likely rise, time is of the essence when it comes to any financing decision. And that goes for car financing decisions as well. If you have ever thought about car refinancing, now is the time.Is it time to refinance your car loan?How do you know if the time is right to refinance your car loan? Ask yourself the following questions to find out.Has my credit score increased?Refinancing will save you money if you can refinance to a lower car loan APR. And the best way to get a good car loan APR is to have a good credit score. If your credit score has improved since your initial financing, it’s definitely a good time to think about refinancing. Increasing your score even slightly will increase your chances of securing a good car loan APR (which can save you hundreds, even thousands, every year). You can increase your credit score by committing to the following:Check your credit report for any errors or inconsistenciesCommit to making full, on time payments (set up auto pay–this can help a great deal!)Keep your credit utilization score ratio below 30%Request higher credit limitsIf your credit score has increased (or you are actively working on increasing it), it might be a good time to refinance your car loan.How much time is left on my loan?Before you commit to refinancing your car loan, think about how much time is left on your current loan. Experts suggest that refinancing when you have at least two years left on your loan will result in the most amount of savings. This is because car loans are front-loaded amortized loans, so in the beginning your payments are mostly going towards your interest. This means that the earlier you refinance, the more money in interest you will save.Are there prepayment penalties on my current loan?Many car loans have prepayment penalties that are designed to deter you from refinancing. After all, if you refinance, they are losing out on interest payments from you. Be sure to read your current contract and know what the fees are. In some cases, the savings from refinancing might still outweigh any prepayment penalties. If you are unsure of what your prepayment penalties are, call your current lender and have them walk you through it. If you don’t have a lot of time left in your loan, the prepayment penalty fees may outweigh the savings. Make sure you do the math and figure out what your potential savings could be with refinancing. Auto Approve can help show you how much money you can save–head over to our quote page to get started!Does my car qualify for refinancing? You must also consider if your car qualifies for refinancing. Most lenders have general requirements for refinancing a loan. Lenders tend to look at:How old your car isHow many miles your car hasHow much money is left on your loanMost lenders require that your car is less than ten years old and has less than 100,000 miles on it. As your car gets older and depreciates more and more in value, the harder it is to refinance.Do I need a little breathing room in my finances?Refinancing your car loan can give you a little breathing room if your budget is a bit too tight these days. Securing a lower APR and changing your payment schedule (for example lengthening it from 36 months to 48 months) can reduce your monthly bill drastically. That’s how you can decide if now is the right time to refinance your car loan.Refinancing your car loan can save you a lot of money, and the sooner you start the process the sooner you can start saving money. Interest rates are only going to increase, so the time to refinance is now.Don’t wait any longer – get started with Auto Approve today to get your free quote!GET A QUOTE IN 60 SECONDS

The cost of new cars right now is through the roof. But what if you really need a new car (or even just really want one) and really can’t wait until the prices come down? Is there any way to curb the price tag on a new car in today’s economy? You may be surprised to hear that there are a few ways to save some money when you head to the dealership. It may take a little extra preparation from you and some willingness to compromise, but there are ways that you can cut down your new car’s monthly bill.Today we are talking about the price of new cars and how you can save money when buying a new car.Why Are Car Costs So High?Car costs have been incredibly high for the past year and a half, but why exactly? It’s a classic case of demand outpacing supply. When the pandemic essentially shut down our economy for a year, demand for new cars dropped drastically. This in turn caused dealerships to cut down on their inventory to reduce any losses (after all, car sales dropped 30% between summer 2020 and summer 2021). And when dealerships reduced their volume, carmakers reduced their orders for semiconductors, which are vitally important to many parts of the car from entertainment systems to advanced warning systems (in fact the average car can have anywhere from 50 to 150 semiconductors in it).While demand for these chips declined from automakers, the demand increased for these chips in the technology sector. Personal computers and electronics used the chips, and by the time automakers were ready to resume normal production levels, there was a full blown shortage in semiconductors. This caused auto production to slow down drastically.On top of this supply and demand issues with chips, inflation is also affecting car prices drastically. Plastic, steel, and resin costs have all increased significantly, contributing to a perfect storm of high prices.Car prices will most likely reduce in the next few years as the supply catches up with demand. But until then, there are steps that you can take to ensure that you get the best deal possible when shopping around for a new car.How Can I Save Money on a New Car?#1: Prepare Ahead The best thing you can do when getting ready to buy a new car is make sure your finances are in order. Check your credit score and request a copy of your credit report to see if there are any inconsistencies. The reason is simple: the better your credit score is, the better the financing deal you get will be. Your credit score is the single most important factor that goes into determining your car loan APR, so you want to be sure it is as good as possible. If your score is a little low, take a few months to strengthen it before looking to finance a new car. You should also be sure to have your down payment ready to go. Experts recommend putting down 20% on a new car to curb the depreciation and keep your car loan from becoming upside down. (Don’t ever dive into your emergency fund to make a down payment though; find money elsewhere to use for your new ride.)Prepare additionally by shopping around extensively for the car you want. Look at multiple dealerships in your area, and consider looking at dealerships that are farther away (you can always have the car delivered to you). #2: Trade InThe flip side of the supply and demand imbalance for new cars means that the demand for used cars has also increased. If you are looking to trade in your old car for a new car, this means your trade is worth more than ever before. Be sure to do your research ahead of time however: the dealership will still try to lowball you. Check Edmunds or Kelley Blue Book to get a good sense of what your car is worth. Knowing your car’s value will ensure you get the best (and fairest) deal possible.#3: Be FlexibleThe demand for new cars also means that you might be less likely to get the exact car you want. Try to be flexible about the car you want and focus on the things that are truly important to you in a new car. Is it fuel economy? Dependability? Look at other makes and models and see what’s out there. You might get a great deal on a car you didn’t know you wanted.#4: Avoid Add-OnsKeep in mind that with the rising price of cars, the price of add ons is also increasing. Being flexible with what additional features you would like can also help you save money on that final price tag. All of these add ons– from all weather mats to the upgraded sound system–will roll into your financing and ultimately cost you extra every month.#5: Shop Around for the Best FinancingDon’t simply go to the dealership and acquiesce to their financing terms. Do your homework ahead of time and get prequalified with a number of lenders beforehand. This will help you negotiate at the dealership as well, since you will have a benchmark of the car loan APR that the dealer will have to beat. And if you find the car you are looking for AND a good financing deal, don’t wait to act. The car market is very competitive, so be sure to arrive at the dealership not only with pre approved financing, but with proof of insurance and a checkbook as well.Can You Change Your Mind After Financing a Car?After you finance a new car, there isn’t really a way to “undo” it. So if you blew a little too much money on your new car, you might feel a little hopeless (especially if money is tight every month). But there is a way to get out of your high car payments: auto loan refinancing.When you refinance a car loan, you are essentially paying off one loan with another loan. If you are able to find a car loan with a lower interest rate than your original loan, this can save you a lot of money.So how do you know that the time is right? Consider auto loan refinance if any of the following apply to you:The market interest rates are better than they were when you initially financed your car (they probably are better, despite the rising Fed rates)Your credit score has increased since you originally financed your carYou need a little breathing room in your monthly budgetYou want to add or remove a co borrower from your loanRefinancing a car loan can save you money in two ways. First, if you refinance to a lower car loan APR, you can save money in interest immediately. Second, if you refinance and extend your repayment period (say from 36 months to 48 months), you will stretch out the amount of time you have to pay the loan back and reduce your monthly payments significantly.The good news is that car loan refinancing is super simple. And with Auto Approve, it couldn’t be easier. To get started, simply request a free quote. Fill out some basic information and one of our refinance experts will reach out to show you exactly how much money you could be saving. From there, we use our relationships with lenders across the country to secure you the best financing deals possible. We then help you compare offers, complete the paperwork, and sign on the dotted line. It’s that simple! We even handle the pesky DMV paperwork so you don’t have to.With a 4.7 out of 5 rating on Trustpilot, our clients can testify to how easy and effective car loan refinancing is with Auto Approve. One client noted “The process was simple and I felt guided through the process the entire time. I am happy to be saving $100/month and to not have a payment for several months. Some users report cutting their interest rates by as much as 6 points. At Auto Approve, we aim to make this process as easy as possible and save you money. Those are our two main goals, and our clients' testimonials show that we get results. Don’t let a bad financing deal run your life. Because although you can’t simply “undo” your financing decision, you can refinance, which is just as good.Those are our top tips on how you can save money when buying a new car.We hope this will help you navigate buying a new car in these expensive times. And if you have already purchased a new car that has you overwhelmed with monthly payments, consider refinancing your car loan with Auto Approve. Get your free quote today and see just how much money you could be saving!GET A QUOTE IN 60 SECONDS