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If you have ever applied for a loan, you have likely come across the term debt-to-income ratio. It is a very important factor in your personal finances and one of the key things that a lender will look at when determining whether or not to approve your loan.Let’s talk about debt-to-income ratio and why it’s so important.Why is debt-to-income ratio so important?Your debt-to-income ratio is calculated by adding up all of your monthly debt payments and dividing them by your monthly gross income. The higher the ratio is (which means the more money you owe) the riskier the loan is perceived to be. The more debt you have, the more likely you are to be unable to make your monthly payments.There are two components of your debt-to-income ratio that lenders will consider, your front end ratio and your back end ratio.Your front end ratio, also called the housing ratio, looks at your income compared to your housing expenses. These expenses include your monthly mortgage payment, property taxes, homeowners insurance and any homeowners association fees you may be required to pay.Your back end ratio looks at your income compared to all of your monthly expenses, including your mortgage and other housing expenses. It also includes your student loans, credit cards, car loans, and any other expenses you may have.Your DTI ultimately shows lenders how you handle your debt and how capable you are to pay back your debts. The higher your DTI is, the less likely a lender will approve you for a loan.How is my debt-to-income ratio calculated?To calculate your debt-to-income ratio, you first need to add up all of your monthly expenses. Some examples include:Mortgage paymentsInsurance paymentsCredit card minimumsCar paymentsStudent loan paymentsPersonal loan paymentsOnce you have your total expenses calculated, divide that number by your monthly gross income–your income before taxes and other deductions. That number is your DTI.Let’s say your monthly expenses are as follows:Mortgage payment: $3000Credit card minimums: $150Car payments: $400Student loan payments: $600Personal loan payments: $300Your total monthly debt adds up to be $4,450. If your monthly income is $13,000, then your DTI is 34%.Note that it includes your minimum credit card payments, but not your credit card balance or any other variable expenses, like groceries. In other words, this ratio gives lenders a good idea of what your basic monthly expenses are, but it's not necessarily a good indication of what you can afford. Qualifying for a $40,000 car loan does not mean that you can necessarily afford the payments.What is considered a good debt-to-income ratio?While these ratios will vary from lender to lender, there is a general consensus on what constitutes a good DTI. You should aim to have a front end debt-to-income ratio that is below 28%–this means that all of your housing expenses take up less than 28% of your monthly income. You should aim to have a back end debt-to-income ratio of less than 36%–this means that all of your expenses, including housing, take up less than 36% of your monthly income.All lenders have different requirements, and your DTI is certainly not the only factor they are looking at. If you have an excellent credit score but a slightly higher DTI, a lender might not view you as a risky candidate. If you have a higher DTI, you might not qualify for as low of an APR. Some conventional loans, like Fannie Mae, accept loan applicants with ratios as high as 50%. It really does depend on a lot of factors, but the lower your DTI ratio is, the more likely you will get a favorable loan.How can I reduce my debt-to-income ratio?If your debt-to-income ratio is higher than you would like, there are a few things you can do to lower your ratio.Create a BudgetTake the time to map out a realistic and easy to track budget. Take a detailed inventory of all of your expenses, from the boxed meal prep kit you got talked into to the electricity bill that keeps ticking higher and higher. Only when you look at all of your expenses listed out will you see how much you are truly spending. Compare your expenses to your income to see how it is measuring up. Are your expenses outpacing your income, or are you able to save a bit each month? If you have extra money every month, you should prioritize starting an emergency fund (if you don’t already have that). After that, look to allocate extra money to your debts. Look for ways to cut down on your spending–any money you save can be used to paying down your debts.Creating a budget can be difficult, so it’s important to attach goals to your budget to help keep yourself motivated. It can also be helpful to tell a friend or loved one about your budget so that you will have someone else to hold you accountable.Strategize Paying Off Your DebtThere are a lot of different ways that you can go about paying off your debt. Here are a few different strategies you can use to pay down your debt:The Snowball Method. Pay down your smallest credit balance first while only making minimum payments on the others. Once you pay off the smallest one, go to the next smallest and pay that one down while making only minimum payments on the others. Repeat until you have paid off all of your debt.The Avalanche Method. Focus on the accounts with the highest interest rates first. If you have three loans with respective interest rates of 18%, 13%, and 8%, prioritize paying down the first loan while making minimums on the others. When that one is paid off, move on to the second loan, and so on, until all of your debt is gone..Debt Consolidation. Another option is to use a debt consolidation service to move all of your debt to one account, and make payments on that. This will depend on what types of loans you have and what interest rates you can secure.There are some other simpler methods for paying off debt as well. These include:Paying an additional amount above the minimum on every balance every month.Making an extra payment every few months.Get a balance transfer credit card.Refinance Your LoansOne great way to help reduce your DTI is to refinance your loans. Refinancing your car loan or mortgage can help you in a few ways. When you refinance, you will be able to change your repayment period on the loan. For instance, instead of a 48 month car loan you can refinance to a 36 month car loan. This means you will be paying your debt off at a faster rate, reducing your DTI at a faster rate. Shortening your repayment period often comes with lower car loan APRs as well. Your monthly payments will be a bit higher, but if you can afford that adjustment it will greatly help your DTI and credit score in the long run.If your credit score has improved since you initially financed your car or your home, or if the market rates have decreased since you initially financed, you may qualify for a significantly lower APR. This can save you a lot of money, money that you can use to pay off other debts.Avoid Taking on New DebtThis may be obvious, but try your best to avoid getting into more debt. Limit your purchases, resist opening new lines of credit, and avoid any major purchases. Look to Increase Your IncomeIf you feel like you are in the weeds when it comes to your debt, look to increase your income. Perhaps you can pick up a side job or increase the hours where you currently work. Whatever your situation is, finding a way for your income to outpace your expenses is key.That’s everything you need to know about your debt-to-income-ratio and why it’s so important.Applying for a new loan can be stressful, so it’s important to be as prepared as possible. One way to prepare for your application is to calculate your DTI to see how you stack up. If your DTI is above 36%, you may have a more difficult time finding a lender. If you are able to delay the process, devote your time and energy to reducing your DTI ratio. This will most likely cause your credit score to increase as well. This will make you a much more desirable loan candidate as you move forward.Refinancing your car loan is a great way to help lower your DTI and increase your credit score. If car refinance sounds like a good option for you, Auto Approve may be able to help you. They have relationships with lenders across the country, which helps them secure the most competitive rates on the market. Simply contact us to see how much money you could be saving!GET A QUOTE IN 60 SECONDS

Buying a car can feel like a minefield when it comes to unexpected fees. Even if you have been able to successfully negotiate a good deal on the actual price of the car, that’s not even close to the car’s true price. So today we are going to talk about what a car actually costs and how you can prepare for the extra costs that you might not have been thinking about.Here’s what you should actually expect to pay when you buy a car.What are the common fees that you will have to pay when buying a car?No matter what state you live in or how much you spend on your new car, you will inevitably be required to pay certain fees. The vehicle registration, documentation fee, and sales tax are three additional costs you should expect to pay when buying a new car.Vehicle Registration FeeThis is the fee that the state charges to register a new vehicle. This covers registration, title assignment, and the cost of license plates. While this is a government fee, the dealer can provide this onsite so that you do not need to go to your local DMV. How the registration fee is calculated depends on the state you live in. Some registration fees are a simple flat rate, but sometimes they vary. States may base their fees on the following:The weight of the vehicleThe price of the vehicleThe age of the vehicleThe horsepower of the vehicleAdditionally some states charge extra if your car is electric. This is mainly to offset the fact that you will not be paying the gas tax.Documentation FeeThe documentation fee covers all of the paperwork that the dealership must do to complete your sale. This fee will vary greatly from dealership to dealership. Some states have limits to how much a dealership can charge for a “doc fee”–for example Minnesota has a $100 doc fee limit–but most states do not, so this cost can be very high. There is no doc fee limit in Florida, so the median doc fee is nearly $900. While you cannot negotiate a doc fee, you can keep it in mind when negotiating the price of the car. Be sure to negotiate more aggressively to offset additional costs. And keep in mind that sales tax is charged on the doc fee as well.Sales TaxWhile this is not a fee per se, it might be an unexpected cost for some. You will have to pay sales tax on the total price of the car plus the documentation fee. This will vary from state to state, but can add a lot onto the total cost of the car. If you buy a car for $35,000 in a state with 8% sales tax, that’s an extra $2800. In some states you may get a tax break if you are trading in your old car. If you trade in your car for $15,000 and your new car is $20,000, you would only have to pay tax on the difference of $20,000. This will depend on where you live.What other costs will you have to pay when buying a car?In addition to the fees above, there may be a few other fees that pop up in your car buying journey.Market AdjustmentSome dealers might mark up prices on their inventory because of supply and demand. Since we are in the middle of a vehicle shortage, dealers might put an addendum sticker on the price of each car. They are essentially saying that a particular car is in high demand, so they are raising the price to increase profits. You are not required to pay this fee and can try to negotiate, but the dealer also doesn’t have to sell you the vehicle for the sticker price. Advertising FeeSome dealers will charge what they call an advertising fee. They claim this covers the cost to advertise the sale of that particular car. Try to negotiate this fee down–there is a lot of room for negotiation with these types of discretionary fees.Other Dealer FeesYour dealer may charge other fees in addition to the standard fees. Fees for shipping or dealer prep can be found in many contracts. Always ask the salesperson if you are unsure what certain fees are for, and try to negotiate them down if you can.Addons and UpgradesIf you are buying a new car, you will have a lot of options for upgrading. From a nicer trim level to added safety features, there are a lot of added features that can run up your car bill:Anti theft devicesWindow tintingKey protectionPaint and fabric protectionAll season floor matsChrome plated wheelsBlind side protectionCargo traysSplash guardsWheel locksRear seat entertainment systemNitrogen filled tiresLeather seatsInterior ambient lightingAnd much moreThere are seemingly endless options when it comes to what you can add on to your car. But some of these can come with a serious pricetag. A rear seat entertainment system can easily run you an extra $2000, while window tinting can add an extra $400 to your car’s bill.It’s a good idea to consider which ones you want and which ones you can live without. Also think about what add-ons you can do yourself. A dealership will charge you $300 for fabric protection, but you can scotchgard your own fabric for less than $10.How can you save money when buying a car?With all of the added costs of buying a car, it’s important to try to save money where you can. Here are some of our top tips for saving money when buying your car.Know How Much You Can Afford Before You Start LookingGo through your budget and determine exactly how much you can afford to spend on a new car. A good rule of thumb is to keep your car’s sticker price below 20% of your annual pre-tax income. So if your household annual income is $150,000, try to keep your new car’s sticker price under $30,000. Be Flexible With What You WantWith today’s vehicle shortage, it might be hard to get the exact car that you want. Patience and flexibility are key here. If you have your heart set on one type of car, you will need to be patient and know that it might take months of searching, and you still might not wind up with what you wanted. If you can be flexible on the make and model, you will have a much more successful search.Scour The Internet For DealsOne of the best things about today’s technology is that you can find deals all across the country. The car of your dreams might be on the other side of the country, but it can still be yours. Sometimes a deal will be so good that even with shipping costs, you make out ahead of the game. Here are just a few sites where you can find the best deals:AutotraderCars.comCarvanaEnterpriseCarsDirectTrueCarVroomCars.comBe sure to check your local dealers and local papers as well. You never know where you will find the best deals.Negotiate As Much As You CanIt’s hard to negotiate a lot when there is a vehicle shortage. But that doesn’t mean you shouldn’t try. After all, a customer who is ready to pull the trigger is better than a hypothetical customer down the road. Try to negotiate on the cost of the car, the doc fees, advertising fees, marketing fees, and any other additional fees they might list in the contract. And if they are unwilling to negotiate, you can decide if the total cost is worth it. You can always walk away if you decide the answer is no.And that’s what you should expect to pay when you buy a car.Buying a car can be very expensive. From the unavoidable costs (like sales tax) to the optional costs (like tinted windows), the price can easily keep ticking up. But it’s important to remember that you are the customer, and as the customer you ultimately have the choice to buy or walk away. If you choose to buy a car, make sure you can afford to do so and that your budget will allow it.If you already bought your car but are still looking to save some money, consider refinancing your auto loan with Auto Approve. Refinancing can save you a lot of money in the long run–we’re talking hundreds if not thousands of dollars. If your credit score has increased or the market rates have decreased since your original financing, chances are you will qualify for a lower car loan APR.Get your free quote from Auto Approve today to find out just how much you can be saving!GET A QUOTE IN 60 SECONDS

With the ups and downs of today's economy, we are all looking for some ways to save money. So you have probably heard a lot of people talking about refinancing. And it makes sense–there are a lot of benefits to refinancing your loans, especially your car loan.Here are 9 benefits of refinancing your car loan.What does it mean to refinance your car loan?Refinancing a loan is when you pay off an existing loan with a new loan that (ideally) has a better APR and better terms. By paying off your old loan with a new one, you can save a lot of money in interest. But there are other benefits too. What are the benefits of refinancing your car loan?Benefit #1: You can get lower monthly paymentsThe main reason people choose to refinance their car loans is to save money. This can be especially important for any of the following reasons:You are feeling the effects of inflationYou have lost your jobYou have had your hours cut at your jobYour other expenses have increased, such as rent or utilitiesYou are trying to save up for something, such as a renovation or vacationWhatever the reason is, some extra money every month can make a big difference for most people. Your monthly payments can decrease for two reasons: you get a lower interest rate or you lengthen your repayment period. Either way, refinancing your car loan can cut your monthly payments drastically.Benefit #2: You can add a cosignerIf your credit isn’t the best, adding a cosigner to your loan can help you to secure a lower car loan APR. But you cannot just add a cosigner to your loan. Instead you must refinance your loan so that your credit scores and histories can be considered together. If you have a loved one with great credit (while yours is not the best), refinancing your car with their name on the loan can help you secure a lower car loan APR.Benefit #3: You can remove a cosignerWhen you take out a car loan, the lender will look at the credit score and income of whoever is applying, whether you are applying on your own or with someone else. The rate and terms that are offered depend on the credit of all parties involved. Because of this, you cannot remove a cosigner without refinancing. The lender will insist that the rate should be adjusted based on who is added to the loan. Removing a cosigner can be necessary if you have just broken up with a partner, or if you are finally ready to be on your own financially from a parent or family member. Whatever the reason, the only way to get another person off of your loan agreement is to refinance your car loan.Benefit #4: You can get a lower interest rateThis is the big one–the main reason people choose to refinance their car loan. This is how you can really save money in the long run. By refinancing your car loan to a lower APR, you can save hundreds if not thousands of dollars. There are three main reasons why you might qualify for a lower car loan APR.The market rates have decreased. The rate you are offered will be based in part on what the current loan rates are. If they have decreased since your original financing, there is a good chance you may find a lower car loan APR.Your credit score has increased. The biggest factor in the car loan APR that you are offered is your credit score. It is also the part that you have the most control over. Focusing on increasing your credit score before you apply for a car loan refinance can pay off a great deal. Making sure you pay all of your bills on time and in full each month, asking for higher credit limits, and paying down debt strategically can all help increase your credit score and secure you a lower car loan APR.Your debt-to-income ratio has improved. Lenders look specifically at how much money you bring in compared to how much debt you are in. If either your debt has decreased or your income has increased, this can improve your ratio and secure you a lower car loan APR.While you do not have control over the market rates, you do have control over your credit score and your debt-to-income ratio. Make sure your finances are in good shape before you apply for refinancing to make sure you get the most savings possible.Benefit #5: You can shorten your repayment periodIf you have some extra room in your monthly budget and would like to save money on the overall repayment, refinancing can allow you to shorten your repayment period. Refinancing to a shorter repayment period will most likely earn you a lower interest rate as well. Not only will you be saving because you have a lower interest rate, but you will be cutting months (if not years) off of your repayment. And that means months and years where you are not paying interest.Benefit #6: You can lengthen your repayment periodOn the other hand, if you really need the extra breathing room every month you can lengthen your repayment period. By lengthening your repayment period, you are stretching out the time you have to pay the principal back, and therefore reducing the amount that you owe every month. Although you will end up paying more money over the life of the loan (you will be paying interest for a longer period of time), you will give yourself some wiggle room in your monthly budget for wherever you may need it.Benefit #7: It may improve your credit score in the long runIf you can make your monthly payments more manageable, you can greatly improve your credit score. Not only will you be more likely to make full, on time payments for your car loan, but you will free up money to pay down other debts. Committing to making on time payments and paying down debt are two of the best ways to improve your credit score.Benefit #8: You can get out of a bad relationship with your lenderSometimes relationships, even ones with your auto loan lender, just aren’t meant to be. Maybe you don’t like their customer service. Maybe they have fine print with which you don’t feel comfortable. Whatever the reason is, refinancing your car loan can allow you to break off your relationship with your current lender and start fresh with a new one.Benefit #9: It can help you build your emergency fundIt is so important these days to have an emergency fund, a just-in-case stash of money. Experts suggest having enough money tucked away to pay for six months worth of expenses, although the vast majority of people do not have even $1000 saved for a rainy day. But if you refinance your car loan, you will free up some of your monthly budget to hide away in case of an emergency.When should you not refinance your car loan?While there are a lot of great reasons to refinance your car loan, there are times when it will not make sense to pursue refinancing. Your credit score has decreasedIf your credit score has decreased since your initial financing, you will most likely not find a lower car loan APR. If the market rates have dropped significantly, you might have more luck. But in general it is better to focus on improving your credit score before refinancing your car loan.Your vehicle has a lot of miles on itLenders have certain requirements for the vehicles they finance. This is because your car acts as collateral should you not pay your loan back. If you default on your loan, the bank wants to be sure that they can sell your car and make back the money they put out. So if your car has a lot of miles on it or has depreciated significantly, you might not qualify for a car loan refinance.Your loan is underwaterIf you owe more on your car than your car is worth, your loan is considered to be “underwater”. Lenders will not see a value in refinancing your car and you will most likely not be able to refinance.Those are the 9 major benefits of refinancing your car loan.Refinancing your car loan has so many benefits and the message is clear: now is the time to refinance. Rates are still low (but they are set to rise in the near future) and it’s never been more important to pinch pennies where you can. Car refinance doesn’t have to be complicated–and with Auto Approve, it isn’t. Get in touch with us today to find out just how much you could be saving every month. With 3500 5 star reviews on TrustPilot, you can be sure you are in good hands.GET A QUOTE IN 60 SECONDS

We are already well into the summer season, but there’s still plenty of time to enjoy all that this time of year has to offer. Whether you want to take your family to the beach for a week, or you’d settle for some day trips here and there, some extra money could do us all some good right now.Here are our top 7 tips for saving money for summer.Create a Monthly BudgetWe will say it until we are blue in the face: creating a monthly budget is the best way to get a hold on your finances. Not only will it help you track what your expenses are, but it will help you see what areas you can cut down. Here’s a quick guide to building your budget:Determine your income. Look at all of your income for the month. Include your paycheck (minus any taxes and 401k contributions), plus any side hustle money you may have. Rental properties, dividends–whatever may give you some extra income, include it in your income.Categorize your expenses. There are two types of expenses that everyone has: variable and invariable. Your invariable expenses are costs that stay the same every month, like your rent, insurance, and internet bill. Your variable expenses are costs that change every month, like your groceries, electric bill, and entertainment expenses. Calculate your expenses. Once you categorize them, try to calculate averages the best you can. Use receipts from the past 6-12 months to ballpark your variable expenses.Make a plan. Now that you know your incoming and your outgoing, you know whether or not you are making enough money to cover your expenses. If you are not, look for things to cut out of your expenses (such as subscriptions, take-out, and brand name products). You want to come up with a plan for your income, such as the 50/30/20 model. In this model, 50% of your income is allocated for needs, 30% is allocated for wants, and 20% is put into savings. There are many variations on this, so do your research and see what works for you.Enter summer expenses as a line item. Try to ballpark how much you think you will need for your summer plans. Do you need $800 for a day at the amusement park with your family? Do you need $3000 for that summer rental you;ve been eyeing up? Whatever your plans for summer are, try to build them into your budget.Set Limits in AdvanceSetting limits on your vacation goes hand in hand with creating a budget. Determine how much you can reasonably spend on your summer plans. It can be helpful to allocate “bonus money” such as a tax refund or credit card cash back rewards towards your vacation.Check Out Free ActivitiesThere are loads of free activities all over the country. Try to be creative with your summer activities and take advantage of these activities when you can. Here are a few free and fun activities you can try out:Go on a hikeVisit the libraryVisit a local museumGo to a county fairGo to the parkAttend a free workout classGo to the beachGo to a paradeIn addition, there are a lot of cheap options as well. They aren’t free, but they won’t break the bank:Go to the moviesGo to a minor league baseball gameGo to the zooGo to the aquariumKeep an eye out on Facebook or in your local paper to see what events are going on in the community. Chances are you can find a cheap and fun activity for every summer weekend.Refinance Your CarIf you are trying to free up some money for your summer, refinancing your car loan is a great way to do so. By refinancing your car loan, you can get a lower car loan APR and save hundreds if not thousands of dollars every year. You can also choose to extend your repayment period, thus drastically lowering your monthly payments. This can be a great way to save for your summer activities without dipping into any savings. And the best news is, refinancing your car loan is super easy if you use Auto Approve. We have relationships with lenders across the country, so we can get you the most competitive rates available. All you have to do is fill out some basic information, and our qualified experts will help you compare offers from across the country. They will even help you with all of the paperwork! So if you are overpaying every month on your car loan (and you probably are), consider an auto loan refinance and use some of those savings to fund your best summer yet.Use Cash and Not CreditUsing cash will help you limit how much money you spend. If you tell yourself that you have $200 to spend throughout the day, you will be much more conscious about what you are purchasing. It is all too easy to keep swiping your card, and those expenses will add up quickly. Using cash will force you to think through your expenses and edit your purchases. If You Must Use Credit, Be Smart About ItThat said, if you have to use credit or really don’t like the idea of carrying cash on you, be smart about your credit choices. Be sure to use a credit card that has a good cash back program so that you can make money on your purchases.Get Creative with ChildcareLet’s face it: childcare is expensive. And in the summer, it can be really hard to coordinate childcare while you are working. If you are lucky enough to have family nearby, ask them to pitch in a day or two a week while you are working. If that’s not an option, see if you can go in on a shared sitter with some friends, so you can all shoulder the burden together. If there is an affordable summer camp, that can be a great option as well. If your kids are a bit older, look into a virtual summer camp which can provide activities while keeping costs low. This can save a bit more money for your family time together.And those are our top tips for saving money for summer.Summer should be a time to have fun and unwind, not stress about money. We hope these tips can help you enjoy your summer to the fullest. Just remember to budget accordingly and set limits on spending – and if you can, refinance your car loan with Auto Approve to save a lot more money!GET A QUOTE IN 60 SECONDS

The price of new and used cars have both skyrocketed in the past year and a half. And while there are nuanced reasons for this in both markets, it all boils down to an issue with good old supply and demand.With the price of new and used cars so high these days, it might be difficult to decide which is best for you. Today we are talking about new and used cars and how you can decide what is right for you.Why are cars so expensive right now?Car prices have been on the rise in the past year and half due to a high demand and a limited supply. When the pandemic essentially shut down the economy, car sales dropped drastically (we’re talking 30% in just one year). And when the demand decreased, car dealers responded by reducing their inventory. This reduction in inventory caused carmakers to reduce the amount of cars they were making, and the amount of materials and parts they were using dropped. Notably, they cut back on ordering semiconductors, and the manufacturer's cut back on making the semiconductors (due to lack of demand and a lack of workers). Fast forward a few months to when the economy started to reopen. All of a sudden interest rates dropped and people were ready to start making big purchases again. That’s when the demand for cars increased again. Only now the supply wasn’t there for them to buy.Since then it has been a scramble to try to keep up with demand. This supply and demand issue coupled with rising inflation is making car prices soar. And it seems like this will be the case for the foreseeable future.Whenever the demand for new cars is high, it usually means that the demand for used cars is high as well. This is simply because when people get outpriced of something new, buying used is the next best option.What are the advantages of buying a new car?You Can Get the Car You WantWhen you get a new car, you can order exactly what you want and have it made to order. The make, model, color, trim level, accessories–you name it. You often have to wait longer, but it may be worth it to you. Newest Technology and Safety FeaturesWhen you get a new car, you can get the latest technology in terms of entertainment and safety. Since navigation systems and entertainment systems become out of date relatively quickly, a car that is only a few years old may already be out of date with its technology. And with the safety requirements on new cars becoming more and more stringent, a newer car is much more likely to be safe.Higher Fuel EfficiencyAs technology advances, car makers are able to constantly push the bar when it comes to higher fuel efficiency. With the price of gas these days, that can mean a lot of savings.Ability to Finance (and Refinance)When you get a new car, you can get financing (and any great financing deals that accompany it). This might be necessary for you depending on your financial situation. And if you are unable to get a great car loan APR right now, you can always refinance your car loan in the future. Having a high credit score and good debt-to-income ratio can help you secure a lower car loan APR.Warranty CoverageWhen you buy a new car you get the manufacturer’s warranty that comes with it, something that is most likely not available for a used car (if the used car is new enough and the warranty is transferable, consider yourself lucky!). This can save you a lot of money should anything go wrong during the first few years you own the car.It’s Not UsedThis seems self explanatory, but it’s a great reason to buy new. When you buy a new car, you can be certain that there is no hidden damage. With a used car you can never be totally sure that your car hasn’t been in an accident. There is a lot of comfort unknowing that you have been the only owner of your car.What are the advantages of buying a used car?Lower Cost to BuyEven with the rising prices of used cars, buying used is still cheaper than buying a new car. This means you can afford to get a nicer car that is slightly used, as opposed to getting a base model that is brand new.Lower Cost to InsureIn general, used cars cost less to insure than new cars. Even if the upfront cost isn’t as low as you would like, you can save a lot of money over the coming years.Less DepreciationWhile cars depreciate no matter what, used cars depreciate at a slower rate. This is because cars depreciate the most in their first year, then gradually level off their depreciation rate. A new car loses value the second it drives off the lot, and loses about 20% in its first year alone. Avoiding the first few years of the highest depreciation value can ensure that your asset retains its value.You Still Might Be Able to FinanceIf you have a good credit and a good debt-to-income ratio, you may be able to find a low cost used car loan. Going to a certified pre-owned dealership will help you with this. You might need to put down a larger down payment, but your monthly payments will still be manageable and much less expensive than if you were to buy new.Deciding on New vs. UsedLook at all of the advantages and disadvantages of buying used vs. buying new. Think about what the most important factors are to you. If you are looking to save the most amount of money and are comfortable with doing minor repairs and maintenance yourself, buying a used car might be a great option for you. If you want something that is a bit more reliable and customizable, and you have a little extra money to spare, buying a new car might be the best option. And that’s what you should know when deciding between a used car and a new car.Deciding between a new car and a used car can be a hard decision. But if you have a good credit score, financing might be an option for you either way.Looking to save some money on your monthly car payment? Consider refinancing your car loan with Auto Approve. We have relationships with lenders nationwide, so we can get you the best rates and deals. Don’t wait to start saving money, get a free quote today!GET A QUOTE IN 60 SECONDS

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