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If you are looking to buy a new car, you may be wondering if now is a good time. Fortunately, car loan rates tend to be a little less sensitive than other types of loans. So even though the Fed has announced that it will be steadily raising rates throughout the year, they shouldn’t affect the car loan market too much.Now is a perfect time to refinance your existing car loan.Auto Rates in 2021The car market went through a strange year in 2021. While rates remained low as a result of the pandemic, there were supply chain issues that resulted in low inventory. Low inventory in turn led to increased prices. But while car prices increased, the interest rates decreased.From the start of the year to the end of the year, car loan interest rates dropped from 4.24% to 3.92%. This actually fueled consumer demand further, leading to even more shortages. Long story short, it was a great time to buy a car, but not an easy time to buy a car.Forecasting Auto Rates in 2022The Fed announced early this year that it plans to gradually increase interest rates to help curb the ever-rising inflation that we are seeing. But as we noted before, car loan interest rates tend to be a bit more stable than other interest rates. This is because car loans are highly competitive, so they do not respond as drastically to market increases. So even though benchmark rates will rise steadily throughout the year, car interest rates will most likely not rise above 5%.The problem continues to be with the supply chain. A global chip shortage has drastically slowed down production of new cars. New car availability is down about 65% over the last year, which makes buying a new car more difficult and more expensive. In fact, a Torque News survey reported that dealerships were charging between $10,000 and $20,000 over the sticker price for a new car.So while timing is great from a financing point of view, timing is not necessarily great from a car price tag point of view. It might not be the perfect time to buy a new car, but it is the perfect time to refinance your car loan.Why now is the perfect time to refinance your car loanWhen rates are low but inventory is short, it means that it’s a great time to consider keeping your current car and refinancing your car loan to a lower rate. Consider refinancing your car loan if any of the following apply to you.You got talked into dealer financing with your original loan Dealer financing is very rarely a good idea. You see car dealerships are indirect lenders, which means they act as an inbetween for you and a bank or credit union. The financial institution handles the actual financing, while the dealership tacks on financing fees. So when you pay for dealer financing, you are really paying for the loan plus the added dealer fees. When people refinance their car loans from dealer financing, they report saving hundreds of dollars per year.Your score has improvedIf your credit score has improved since your initial financing, you may be eligible for a much lower car loan APR. Your credit score is one of the most important factors in the car loan APR that you will be offered. Your score can increase for a number of reasons. You have made consistent, full, on-time paymentsYou have had a negative event expire (like a bankruptcy)Your credit limit has increasedYou haven’t had a lot of credit inquiriesYour credit utilization score has increased. This ratio is determined by adding up all of your credit card balances and dividing it by your available credit. This number should ideally be less than 30%All of these events can change your credit score and have a positive impact on the car loan APR that you are offered.The market rates have dropped since you initially appliedWhen did you get your initial car financing? If it was a few years ago, chances are the market rates have dropped since then. In fact, according to an Experian study, average car loan rates dropped from 5.26% at the end of 2019 to 3.86% at the end of 2021. That’s close to a 1.5% decrease in just two years. Cutting your car loan APR by that much can add up to a lot of money in savings.How you can prepare to refinance your car loanIf you are overpaying on your car loan payments (and trust us, you probably are), there are a few steps you can take to prepare for auto loan refinance. Here are our top tips to prepare for your refinance. Jumpstart your credit scoreGive your credit score a little jumpstart before you apply for auto loan refinance. Request a copy of your credit report and review it carefully for any mistakes or errors, and report any inconsistencies immediately. Then look at all of your debts and see if there are any high interest accounts that you can pay down a little bit. Lessening your credit utilization ratio can help you increase your credit score. You can also improve your credit utilization score (and therefore increase your credit score) by requesting higher limits on your accounts.Get your documents in orderBeing as prepared as possible can help make the refinance process quick and easy. Gather up all of your necessary paperwork and upload it to make your application process as easy as possible.  You will most likely need the following documents: photo identification, your social security number, proof of residence, your car’s information (make, model, year, mileage, and VIN), proof of income, proof of insurance, and your current loan information. Use a company that specializes in auto loan refinanceThere are a lot of lenders out there that can refinance your car loan. From traditional banks, to credit unions, to dealerships, there are a lot of options. Using a company that specializes in auto refinance can help simplify this process for you and ensure that you are getting the best offers possible. At Auto Approve, you simply need to fill out some basic information, and we can handle the rest. From fast tracking your applications to helping you close the deal, Auto Approve can help you navigate the waters of refinance.Now is the perfect time to refinance your car loan, and Auto Approve is here to help.Get a free quote and start saving money today!GET A QUOTE IN 60 SECONDS

Refinancing your car loan is a great way to save money. Whether money's a little tight or you want to open up more monthly cash flow for more important things, either refinancing to a lower car loan APR or by changing your repayment term can drastically change your monthly payments. And refinancing to a lower rate can even help you save more money overall and pay less monthly. But are there any upfront fees associated with an auto loan refinance? That's what we'll be taking a closer look at in this article. How much money does it cost to get an auto loan refinance, and is it worth it?When you refinance a car loan, what happens?Auto refinance is when you pay off your existing car loan with a new car loan, ideally one that has better terms and a better car loan APR. And while it may sound complicated or time consuming, it’s actually super simple. It’s much easier and faster than refinancing a mortgage, and if you use a dedicated auto refinance company, they can handle a lot of the paperwork for you.To refinance a car loan, there are just a few simple steps you need to take.Gather your documentsMake sure you have all of the paperwork you will need for your car loan refinance. You will typically need the following:Your personal information. This will include your photo identification, social security number, and proof of residence (note that it must be a physical address, not a PO Box).Your car’s information. You will need to know the make, model, year, VIN (vehicle identification number), and mileage of your car.Proof of income. You will need proof of employment. Recent pay stubs are perfect for this.Proof of insurance. You will need to prove that your car is insured.Current loan information. You will need all of your current loan information, including the balance and the lender’s contact information.After you have all of your documents together, you may want to scan and upload them on your computer if you are planning to apply online. The more prepared you are, the faster the refinancing process will be.Make sure your credit is in good shapeBefore you apply for auto loan refinance, you want to be sure that your credit score is in good shape. After all, the higher your credit score is, the lower your car loan APR will be. Request a copy of your credit report to check for any mistakes or errors and report anything that is incorrect. If your credit score isn’t great, consider waiting a few months and focus on increasing your score in that time.Research lendersBefore you apply, you won't have any solid offers to compare. But you can do research on different lenders and see what their customers have to say about them. Are their customers happy with their loans? Is there good communication and customer service? Narrow down on three to five lenders, ideally a mix of traditional banks, online lenders, and credit unions.Apply and compareAfter you’ve done your research, it’s time to apply. If you use a company that specializes in auto loan refinance, they can help you through the application process and help you decide which offer is right for you. Look at the following terms in each offer:The interest rateThe prepayment penaltiesYour cash flow and the repayment termsCustomer satisfactionHidden feesSign and saveOnce you’ve decided on the auto loan refinance that is right for you, you can sign on the dotted line and start saving immediately. Most lenders and refinancing companies will take care of most of the paperwork for you. This involves paying off the balance of the old loan and beginning payments on the new loan. But be sure to reach out to the previous lender to ensure the loan was paid off in full. At Auto Approve, we specialize in refinancing and know how much of a drag all of that paperwork can be. And that’s why we collect all of the documents you need and send them to you electronically. All you need to do is e-sign and let us handle the rest. We even handle the DMV paperwork for you!How much money does it cost up front to refinance your car loan?There are a few upfront costs associated with refinancing your car loan. They will vary from lender to lender and depend on not only your current loan’s terms, but also your new loan’s terms. Here are a few fees that you may be responsible for:Prepayment fee. Your current lender may charge you a fee for paying off your loan  early. Read through your current loan’s paperwork to see how much this fee will cost you. Transaction Fee. Your current lender and new lender both may charge you a processing or transaction fee. You may be able to get this waived however (it doesn’t hurt to ask).Late Payment Fee. If the new loan takes some time to process, you may have a late payment on your existing loan, and there may be a fee associated with this. Registration Fee. You may be required to re-register your car when you refinance your car loan. This varies from state to state so be sure to visit your DMV to find out.Title Transfer Fee. States may also charge a title transfer fee, even though the title is just moving from one lender to another. As everyone’s loans are different, it’s hard to say exactly how much the upfront costs of car refinancing are. It may be next to nothing, or it might be a few hundred dollars. But refinancing a car loan can save you a lot of money in the long run, so don’t let any short term costs dissuade you from auto loan refinance.Is refinancing a car worth it?Most people are overpaying on their car loan payments. And because of this, you can stand to save a lot of money with an auto loan refinance. Car loan refinancing may be right for you if any of the following apply to you. Your credit score has improvedCar loan refinance rates depend heavily on the applicant’s credit score. So if your credit score has increased since you initially took out your loan, you may qualify for a lower interest rate.  Credit scores indicate how likely a person is to repay their loan. A good credit score tells them that you are a good candidate who pays their bills and pays them on time. Your credit score depends on the following categories:Payment History (35%)Accounts Owed (30%)Length of Credit History (15%)Credit Mix (10%) New Credit (10%)If you have been more consistent with on time, full payments, your credit score may have increased since your initial financing. If you have paid down some of your debts and lowered your credit utilization ratio, this also may have increased your credit score significantly. The interest rates are lowIf market interest rates are low (like they are right now), you might be able to qualify for a lower car loan APR, even if your credit score hasn’t changed. Today’s market rates are down significantly from a few years ago, so if you initially financed a few years ago, you may find much better rates now.You need help with monthly paymentsIf your monthly budget is a bit tight lately, refinancing your car loan can help you free up some money every month. Refinancing can help in a few ways. First off, if you can get a lower interest rate, you will pay less in interest every month and ultimately have lower monthly loan payments. But even if you don’t qualify for a lower car loan APR, refinancing your car loan gives you the chance to change your repayment terms. And by lengthening your repayment period, you can change the amount you pay per month drastically.  You may ultimately spend a bit more overall since you will be paying interest over a longer time period, but this might be worth it depending on your current cash flow situation.You want to add or remove a co-borrowerThere is no way to add or remove a co-borrower to an existing loan, so if you want to change who is listed on the loan, you will need to refinance your car loan. This is because every loan decision is made by looking specifically at each borrower’s financial situation, and changing who is listed as a co-borrower may affect their decision to loan the money. There are a few fees that you may have to pay when you refinance your car loan, but it is usually greatly outweighed by the amount of money you can save.While there are a few fees, they will depend on the terms of your current loan and the terms of your new loan. There might be application fees, registration fees, and penalty fees. But in general they are not much compared to the amount of money car refinancing can save you.Refinancing a car loan doesn’t have to be complicated. Get started with Auto Approve today to discover just how much money you could be saving.GET A QUOTE IN 60 SECONDS

2022 is well underway, and it’s time to check in on our resolutions and goals. If your goal was to save more money, we are here to help give you a little extra motivation. With prices going through the roof and inflation creeping higher and higher every day, it’s never been more important to be smart with your money. There’s still time this year to get ahead on your finances and make 2022 your best financial year yet.Here are 5 smart money moves you can make in 2022.Get Serious About Your BudgetWe say it all the time, but it always rings true. Creating and sticking to a budget is one of the most important things you can do for your financial well being. Whatever your goal may be, whether it is to pay off debts, start a college fund, or save for a vacation, having a budget is the best way to achieve your financial goals. So here is our quick and easy guide to creating a budget:Determine Your Fixed ExpensesFixed expenses are your expenses that do not change from month to month. They will not change from month to month and can include your rent or mortgage, car payment, cable bill, trash collection, subscription services, internet, student loans, etc. Once you have located all of your fixed monthly expenses, log them in a spreadsheet.Determine Your Variable ExpensesVariable expenses are your expenses that do change from month to month for a variety of reasons. They might include your groceries, electric bill, parking fees, dining out, entertainment, and home repairs. Try to get an estimate for how much these categories cost you from month to month. Looking at your past credit card bills or receipts can help you get an approximate gauge. Then enter them on your spreadsheet as well.Determine Your IncomeDetermine what your monthly income is. What is your take home income (post tax and post deductions)?  Add in any extra income you may have. This could include a side business, dividends, or rent that you collect. Enter these in your spreadsheet in a separate column.Compare the incoming and the outgoingHow does your incoming money match up with your outgoing? Are you bringing in more than you are spending? In that case, look to see where you can invest this extra money. But what if you are spending more money then you are bringing in? If this is the case, look for places to cut your expenses. What subscription services can you cancel? Can you cut back on entertainment and dining out? Look for any and all places where you can sacrifice to make some changes. Little cuts here and there can add up to big savings in the long run.Pay a Little Bit More Towards Your DebtsAccording to a recent CNBC study, the average American household with debt owes $155,622, or more than $15 trillion altogether. These debts include mortgages, car loans, credit card debt, and student loans. With numbers this large, it’s important to prioritize paying off your debts sooner rather than later.Prioritize which accounts you should pay off. Credit card debt should be first on your list of debts to tackle, as the interest rates tend to be exceedingly high and these debts have a tendency to snowball. Commit to making additional payments whenever you can (and maybe even think about building an extra payment into your budget).Refinance Your LoansRefinancing is when you pay off an existing loan with a new loan, ideally a loan that has better terms. Refinancing a car to better terms often results in saving money, either in the long run by reducing the payment period or interest rate, or in the short term by reducing monthly payments. In fact, in 2021, Auto Approve customers saved, on average, over $100 a month. Interest rates are still relatively low in 2022, so now is an excellent time to consider refinancing. Here are some ways that refinancing your car loan can help you.You Can Save Money with a Lower Interest Rate You may be able to secure a lower interest rate when you refinance your car loan, either because the current market rates are low or because your own personal financial situation has improved. By lowering your interest rate, you are lowering your monthly payments and will end up saving money over the course of the loan.You Can Save Money with a Shorter Payment Period When you refinance your car loan, you may be able to change the terms of your payment period and shorten the period. This can save you money overall, as the sooner you pay back the loan, the less interest you will pay in the long run.You Can Reduce Your Monthly Payments with a Longer Payment Period If your monthly budget is a bit tight these days, refinancing your car loan is a great way to free up some monthly cash. This will allow you to pay off the loan over a longer amount of time, reducing your monthly payments significantly. And while you will end up paying a bit more over the length of the loan because you will be paying interest for a longer period of time, it can give you much needed breathing room if you are currently struggling.Diversify Your Income StreamsIf you have a bit of extra time on your hands, consider getting a side job. There have never been more opportunities for people to get a few more sources of income, and some of them can be done from the comfort of your home. Delivery groceries with Instacart or ShiptBecome a rideshare driverBecome a virtual assistantWork as a transcriptionistWork in someone’s home as a babysitter, house cleaner or tutorBecome a pet sitterTake a passion or hobby and try blogging or setting up an Etsy storeWhile none of these will get you rich quick, they all provide some additional and flexible sources of income. And an extra few hundred bucks a month can make a big difference in your budgeting and savings plans.Take Advantage of Your Employee BenefitsLook carefully through all of your employee paperwork to find out what employee benefits you are offered. So many people do not take advantage of these benefits, and it can mean money down the drain. Employer Contribution Matching ProgramsDoes your employer match your retirement fund contributions? Many companies offer either partial matching or dollar for dollar matching. Partial matching: They will match part of the money that you put in. This varies from employer to employer, but it is common for employers to match 50% of your contributions. This is usually capped at 6% of your salary (they will contribute up to 3% of your salary).Dollar for dollar matching: They will match your contributions in full up to a certain amount. If you are dollar for dollar up to 3%, your employer will match only up to 3% of your salary.Make sure that you are maxing out your contributions every year. If you do not contribute the maximum amount to be matched, you are walking away from free money.Health Savings AccountsEmployers often offer Health Savings Accounts, and there are three main types that may be available: HSAs:  These accounts are owned by the employee, and contributions can come from both the employer and the employee. Money is placed tax-free in an account and can be used for qualified medical expenses. These are usually only available if you have a high deductible plan. Many companies will contribute money per year to offset having higher deductibles.FSAs: These accounts are owned by the employer and deductions are taken from paychecks as tax-free contributions. Employees can be reimbursed out of this account for qualified medical expenses. HRAs: These accounts are set up by the employer to offset medical expenses. Employers are the only contributors to these types of accounts, so you cannot add your own contributions. This money can be rolled over from year to year, so if you don’t use the total amount one year you can use it the following year. If any of these options are available to you, do your research and decide what’s best for you. But with the rising cost of healthcare, health spending accounts are more important now than everAdditional BenefitsAdditional employee benefits may be available to you and can vary widely. Some of these benefits may include:Life insuranceDisability insuranceDependent care optionsLegal plansFree gym membershipTuition reimbursement or supportFree parkingProfessional development programTalk to your human resources department if you have questions about your eligibility, but be sure that you are taking advantage of any and all employee benefits that are offered. After all, they are part of your salary.And those are our top five smart money moves you can make in 2022.We hope this has helped motivate you to make 2022 your best financial year yet. From maximizing your benefits to refinancing your car loan, there are a lot of ways to get more bang for buck.Get started with Auto Approve today to see how much we can save you when you refinance your car loan!GET A QUOTE IN 60 SECONDS

The market values are still low and you know that now is the time to refinance your car loan. But how do you know if you qualify? Is there a minimum credit score that you need to refinance your car? Today we are talking about what credit score you need to refinance a car and how you can get the best auto refinance rates.What factors will impact my auto refinance rate?The car rate APR that you are offered by lenders depends on a few different factors, mainly your credit score, your income, and your vehicle.Your Credit ScoreYour credit score is a large factor in the car loan APR that you will be offered. Your credit score tells lenders how creditworthy you are, and how likely you are to pay back your loan.If you are wondering “what credit score do I need to refinance my car”, there is no magic number. But the higher your score is, the better the rate you are offered will be.Your IncomeYour income is also taken into consideration for your car loan APR. Lenders want to know that you have a steady source of income to meet your payments. They will need to see proof of income, such as pay stubs, to validate your income.In addition, lenders consider what’s called your debt to income ratio (DTI). This is a simple ratio of your monthly debt payments compared to your monthly income. For example if your monthly income is $5,000 and your monthly debts are $2,000, your DTI is 40%. This takes into consideration all of your debts (including rent/mortgage, child support, student loans, credit cards, etc.) and all of your sources of income (including salary, tips, rental income, investment dividends, etc.).Just like with your credit score, there is no magic DTI that you need for refinancing a car loan. But a RateGenius study between 2015-2019 found that 90% of approved customers had a DTI below 50%. Your VehicleYour car is another consideration when calculating your car loan APR. It does not matter what type of car you are driving, whether it is a Honda or a BMW, but rather how much your car is worth compared to how much money you are borrowing.Lenders use a loan-to-value ratio (LTV) calculation to determine if your vehicle qualifies for refinancing. Auto loans are called secured loans, which means that if you should default on payments, your car is the collateral and will be repossessed. The LTV will help lenders decide if they can recoup their losses should you default and they need to resell your car.You can calculate your vehicle’s LTV with the following information: your current loan balance and your car’s estimated value (you can use Kelley Blue Book or Edmunds to get a sense of this number). Then use the following equation:Total Loan Balance/ Vehicle’s Current Value = Loan to Value RatioSo if your current loan balance is $15,000 and your car’s currently valued at $16,000, your loan to value ratio is 93.75%. Once again, there is no magic number you need to qualify for auto loan refinancing, but the lower the LTV, the better. Another RateGenius study between 2015-2019 found that 90% of approved applicants had an LTV below 123%. Generally having an LTV below 100% is considered good.What is the minimum credit score I need to refinance?While your income and vehicle matter somewhat, no factor is more important to your auto refinance rate than your credit score. Credit scores are broken down in five categories: Super Prime, Prime, Near Prime, Subprime, and Deep Subprime. Your ability to refinance and the rate at which you can refinance your car loan will depend on what category you fall into.Exceptional (Super Prime): 800-850Very good (Prime): 740-799Good (Near Prime): 670-739Fair (Subprime): 580-669Very poor (Deep Subprime): 300-579Your credit score is dependent on five separate considerations: payment history (35%), accounts owed (30%), length of credit history (15%), credit mix (10$), and new credit (10%). All of these factors affect your overall credit score, but some categories carry more weight than others. Payment history and accounts owed make up for the heftiest part of your credit score.Your credit score will drastically impact the car loan APR that you are offered when you refinance. If your credit score is deep subprime (with a credit score below 579), you may have trouble refinance your car loan at all, and if you are able to refinance, you will most likely get a very high rate. If your credit score is super prime, you will get the best car loan APRs available. Let’s look at the latest market trends available to look at some average car loan APRs. According to Experian’s State of Auto Finance 2021 Q4, we can see the following averages.Credit ScoreAverage Loan Rate Offered 2021 Q4 (New Car)Exceptional (Super Prime): 800-8502.47%Very good (Prime): 740-7993.51%Good (Near Prime): 670-7396.07%Fair (Subprime): 580-6699.41%Very poor (Deep Subprime): 300-57912.53%The rate increased rather drastically between credit score tiers. So while you still may qualify for financing or refinancing with a subprime or deep subprime credit score, you will be spending a lot more on interest.Focus on increasing your credit score to secure a good car loan APR.How can I increase my odds of getting approved for vehicle refinancing?To increase your odds of getting approved for car loan refinancing (and increase your odds of getting a good car loan APR), focus on improving each of the areas from above: your credit score, your income, and your vehicle. But how?Improve your Credit ScoreImproving your credit score can help your odds of getting a good car loan APR. Consider the following measures to improve your score.Check your credit report. Dispute any errors or mistakes that you notice, as these can impact your credit score negatively.Make on time payments. Your payment history makes up 35% of your credit score, so prioritizing this can help your score a great deal. Sign up for autopay if you can to ensure you are not missing any payments.Pay down your debts. Reducing your credit utilization ratio by paying down debts can have a positive effect on your credit score. This ratio is part of your accounts owed category, which makes up 30% of your credit score. Request higher limits. Requesting higher limits from your credit accounts can also help improve your credit utilization ratio and boost your credit score.Hold off on opening other new accounts. When you open a new account, it triggers a hard inquiry on your credit report, which can cause your score to dip slightly. It will also affect your length of credit history. While these will not drastically change your score, they can be the difference between a good credit score and an excellent credit score.Improve your Debt to Income RatioIt’s also worthwhile to try to improve your debt to income ratio. While you may not be able to change your salary, you can prioritize paying down the principals on your existing accounts so that your ratio lowers.Improve your Loan to Value RatioYour loan to value ratio depends heavily on the car you are driving. While you may not be able to change your car, there are steps you can take to slow down the depreciation on your car. One of the biggest causes of depreciation is mileage. Try to cut down on your mileage if possible to stay ahead of depreciation. Routine maintenance and care of your car can also help curb depreciation.Some cars simply hold their value more than others do. You should keep that in mind when you are initially car shopping. But taking care of your car and cutting down on mileage may help improve your loan-to-value ratio.While there is no magic credit score that you need to refinance your car, the lower your credit score is the better your chances are for approval (and the better the rates you are offered will be).And that’s what you need to know about credit scores that qualify for refinancing!Focusing on increasing your credit score, decreasing your debt to income ratio, and decreasing your loan to value ratios will help you secure financing approval.If you are still unsure of how much you could be saving with an auto loan refinance, contact the experts at Auto Approve today! The car loan APRs are low, so now is the perfect time to refinance your car loan. We make refinancing simple: just fill out your information and you will have car loan refinance offers in minutes. We handle all of the pesky paperwork so you don’t have to (yes, even the DMV)!So what are you waiting for, get started with Auto Approve today!GET A QUOTE IN 60 SECONDS

If you are in your 20s (or even your 30s!), retirement probably feels a looooong way off. So starting a retirement account is probably not at the top of your to-do list. But starting a retirement savings plan early on is a great way to set yourself up for a successful retirement. No matter what your age is, now is the time to get serious about saving for retirement.Now is the perfect time to start saving for retirement, and these are our top four ways to get started.Why should I start saving for retirement early?With so many expenses in our day to day lives, you may be wondering why retirement is so important to prioritize. But starting early is the best way to ensure you will have a successful retirement. You can benefit from compound interestCompound interest will help you grow your retirement account more than anything else. When interest is compounded, the accumulated interest will earn you interest as well, not just the principal that you invest. This creates a snowball effect for your savings. If you initially invest $100 at 10% annually, it will be worth $110 by the end of year one. But in 30 years, even with no additional investments, it will be worth $1,744.94. And that’s the magic of compound interest.You can get into a good savings routineBy starting a retirement fund early, you can get into a good savings routine. Creating space in your budget for a retirement savings fund will make saving second nature to you. This also means that should an emergency come up and you take a few months off from savings, it won’t completely throw you off of your savings track. You will be more protected from market riskWhen you invest in retirement funds, you are actually investing in the stock market. While you have some control over the amount of risk that you are taking, the stock market is inherently slightly unreliable. But if you invest early, you will cushion yourself a bit. If you have any short term losses, you can ride them out over time.How much should I be saving for retirement?How much you save for retirement can vary from person to person. Experts generally suggest saving 10%-15% of your annual pre tax salary. If you are a higher earner, you should aim for closer to 15%. If you are a lower earner, you can aim for closer to 10% as Social Security may replace some of your income.But to get a more exact amount for your retirement savings goal, you can calculate your savings goal yourself.Calculate your expected expensesGo through your budget and come up with a rough estimate for how much you will need to live on each month. Start with your current budget, and estimate how much and what will change for you in the future. Then add on anything that you might want to do in retirement – if you want to join a country club or travel more, include that in your expenses. When you determine your monthly expenses, multiply by 12 to get your annual expenses. This will give you an idea of how much you will need per year to live comfortably. Depending on the age you plan to retire and your life expectancy, you can get a rough idea of how much you will need to save.Use a retirement calculatorA retirement calculator can help you determine if you are on track for savings. By entering your pretax income and savings, it can give you an idea of how much you will need and how far off you are from your goal.How can I start saving for retirement now?No matter what your goal is, the earlier you start saving, the better off you will be. So here are our top tips to start saving for retirement.Contribute to your 401(k) planIf your company offers a 401(k), you should start contributing immediately. If your plan allows you to contribute pre tax dollars, this can help you to build your nest egg much faster. And if your employer matches your contributions, that is essentially free money. So be sure to contribute at least as much as they are willing to match.Open an IRAAn IRA, or Individual Retirement Account, is another type of account that you may consider opening. There are two types of IRAs, traditional IRAs and Roth IRAs. A traditional IRA allows Investments in a traditional IRA may be tax-deductible, and the earnings can grow tax-deferred until you make withdrawals. You can access it at 59 ½ and it will be taxed as income upon withdrawal. A Roth IRA allows you to contribute after tax dollars that grow tax-free. You can make withdrawals at 59 ½ that are tax free and penalty free. In general, traditional IRAs are recommended for people who expect to be in a lower tax bracket when they retire, while Roth IRAs are recommended for people who are in lower tax brackets today.Find room in your budget to contribute moreGo through your budget and see if there’s any cutbacks you can make to start saving more money. Canceling unused subscriptions.Cutting back on dining out and entertainment.Buying generic brands at the grocery store.Refinancing your car loan (refinancing your car loan to a lower rate can loosen up a lot of money every month and make a big difference in your budget).Extra money that you save every month can be allocated to your retirement fund. You know how much money you want to save, so use that number to determine how much you should be saving every month or every paycheck.Consider delaying social securityFor every year you delay receiving social security, you can end up increasing the future amount you receive. Age 62 is the earliest that you can start receiving Social Security, but the more you delay this (up to age 70) the more you increase your future payments.Those are our top tips for starting a retirement fund.It’s never too early to start planning for retirement. The earlier you get serious about savings, the more of an impact it will have on your future. The key is to find extra ways to contribute to your fund and pick a fund that is right for you.An easy way to free up more money for savings is to refinance your car loan with Auto Approve. By refinancing your car loan to a lower APR, you could be saving hundreds of dollars per month. And all of this can add up to a more comfortable retirement. So if you are overpaying on your car loan (and believe us, you probably are) contact Auto Approve today to see how much we can save you.GET A QUOTE IN 60 SECONDS

Credit reports are incredibly important to our daily lives, whether we realize it or not. But far too many people do not regularly check their reports, and it can have negative effects on their financial wellbeing. Whether you want to buy a home, refinance a vehicle, or take out a new credit card, your credit score can make all the difference.Today we are talking about credit reports and why they are so important. Here are our top four reasons why you should check your credit report.Wait – what’s a credit report? And what’s a credit score?Before we get into why checking your credit report is so important, let’s first talk about what a credit report is. A credit report is a detailed account of a person’s financial history. It may include some of the following:A list of businesses and companies that have given you credit or loansThe total amount for each loan or credit limit for each credit cardYour payment history for each account, including the date and amount paidMissed or late paymentsA list of businesses and companies that have requested your reportYour personal information, including current and former names, addresses, and employersAny bankruptcies or other public record informationCredit scores are calculated using the information in your credit report. A credit score is a number between 300–850 that is calculated to depict a consumer's creditworthiness. The higher the score, the better. Credit reports (which result in credit scores) are incredibly important for our financial wellbeing. That’s why it’s important to check your credit report to make sure that you get the best financial opportunities possible.Let’s take a closer look into why checking your credit report is so important.#1: It will alert you to any errors or mistakesChecking your credit will alert you to any mistakes that may have been reported. Whether it’s a missed payment, late payment, or incorrect amount, these mistakes can chip away at your credit score.A study by the Federal Trade Commission found that 25% of people who regularly checked their credit reports found errors that affected their scores.Your report may even contain other people’s information, which is known as a mixed file. In this case someone else’s financial issues may directly impact your credit report.If you notice any mistakes or errors, it may take weeks if not months to sort out. Once you report an issue, the credit agency has 30 days to respond. The sooner you notice any issues, the sooner they can be amended and your score can be fixed.#2: It can help you detect fraud early onChecking your report will also help you determine if anyone has taken out any accounts in your name. If someone has made inquiries using your Social Security Number, it will appear on your credit report. Catching these issues early is key – the earlier you report this, the quicker the accounts can be canceled and your report can be repaired. The following warning signs may alert you to a fraud issue:Incorrect personal information. It can be a simple mistake, but it can also be an early warning sign of fraudulent activity.Unrecognized public records. Tax liens, civil judgements, and bankruptcies are all listed on your credit report. If you do not recognize one of these records on your report, investigate it further and report it. These can drastically impact your credit report and credit score.Unrecognized lender inquiries. Promotional inquiries and account review inquiries are nothing to worry about, but if you notice hard inquiries that are not familiar, you should investigate. Double check the names however before filing a complaint to make sure it was not authorized by a car dealership or mortgage broker who you are using.Accounts that you never opened. If there are open accounts that you didn’t authorize, contact the lender immediately to have the accounts closed and investigated.Increased credit utilization. If your credit utilization score suddenly increases while your spending habits have not, this may be a sign that someone is spending money on your accounts. Your score drastically changes. Credit scores change for a number of reasons over time, but if you notice any drastic swings, be sure to investigate more.If you do catch any fraudulent activity, be sure to contact the appropriate lenders as soon as possible and alert them to the situation.#3: It can save you moneyA good and accurate credit report means that you will have a good and accurate credit score. And having a good credit score is good for a number of reasons:Lenders will approve you for lower interest rates on credit cards and loansThe best lenders will be more likely to approve youLenders will give you higher credit limitsInsurance companies will give you better insurance ratesLandlords will approve you for rentals more easily You will have more negotiating power for loans and accountsSo what’s considered a good credit score? The following brackets can help you decide how your creditworthiness is ranked:800 to 850: Excellent credit740 to 799: Very good credit670 to 739: Good credit580 to 669: Fair credit300 to 579: Poor creditThe top rates are reserved for those with excellent credit and very good credit. The lower your score dips, the higher your interest rates will climb. All of this adds up to you saving money in the long run. Having a good credit score can help you secure a low car loan APR when you refinance your car loan. Better interest rates and payment terms can add up big over time. So it is vitally important to stay on top of your credit report and work to improve a bad credit score.#4: It’s free!The Fair and Accurate Credit Transactions Act of 2003 made it possible for you to check your report at each of the three major credit agencies – Experian, Transunion, and Equifax – for free once per year. This means that you have three opportunities every year to get a free credit report. Pulling your own report takes about ten minutes and is super easy for anyone to do. And despite what you may have heard, pulling your report does NOT hurt your credit.In addition to checking your credit report three times a year, you should routinely monitor your credit score. This will help alert you to any issues that may be worth inquiring about.And that’s why you should definitely be checking your credit report.By catching mistakes and errors you can help your credit score a whole lot. And a healthy credit score means that you can qualify for a low car loan APR when you refinance your car with Auto Approve. Get a free quote today and find out just how much you can save!GET A QUOTE IN 60 SECONDS

There is so much talk lately about loan refinancing. The market rates are low, yet they are expected to rise throughout the year, so the time to refinance is prime. But what do you need to refinance your car loan? What are the requirements, and if you meet the requirements, how do you go about refinancing your vehicle?Today we are talking about the requirements of car refinancing and how you can decide if a refinance is right for you.If you are interested in refinancing your car, it will depend on three major factors: your credit, your car, and your current loan.Refinance Requirement #1: Your CreditYour ability to refinance your car will depend heavily on your current credit score. Credit scores are designed to rate your likeliness of paying back a loan. Lenders are in the business of making money, so the last thing they want to do is give a loan out to someone who will not pay them back. Making sure you have a good credit score is incredibly important when it comes to refinancing your car loan. Credit scores take five main categories into account:Payment history (35%) Do you pay your accounts on time, or are your payments inconsistent and incomplete?Amounts owed (30%) How much money do you owe? How much money do you owe in relation to how much credit you have available to you? This is called your credit utilization ratio, and it should ideally be below 30%.Length of credit history (15%) How long have you had our accounts open for? The longer you have a history of having open accounts and consistently paying them, the higher your score will be.Credit mix (10%) How diverse is your credit portfolio? A healthy mix of loans, credit cards, retail credit cards, mortgages, etc will help show lenders that you can balance having varying accounts open.New credit (10%) Are you opening a lot of new credit lines? Are there a lot of inquiries on your credit score? A lot of new accounts can raise a red flag to lenders.The most important categories of your credit score are the payment history and the accounts owed. Together they make up 65% of your score. Focusing on improving these areas can help boost your credit score. And you definitely want to make sure your credit score is as high as it can be before you apply to refinance your car. Here are our top tips for increasing your credit score:Make on time payments. This will help improve your payment history section. Even just 6-12 months of on time payments can make a drastic difference in your score. Try setting up auto pay on accounts that have that feature so that you never miss a payment.Pay down debt strategically. Your credit utilization ratio takes into account 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 $10,000 with a balance of $2,000, and another account with a credit limit of $2,000 with a $1,000 balance, you should prioritize paying off the $1,000 balance. Even though you owe less money on that account, your credit utilization ratio is 50%, as opposed to 20% on the other account. Paying down your debt strategically can help your credit score tremendously.Request higher limits. Requesting higher limits on your credit accounts will help to reduce your credit utilization ratio. Lenders usually take this initiative and raise the limits for you, but it doesn’t hurt to ask. This can have a significant impact on your score.Check your credit report. You can check your credit report three times per year for free, once from each of the major credit agencies. Request your report and cross check it with your credit payments and histories. Did some payments get misreported as missed or late? Do all of the balances on your accounts add up? Is your personal information correct? 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. If your credit score has dropped drastically since your initial financing, you may not qualify for refinancing. If your score has dropped a little since your initial financing, you may qualify, but not qualify for a good APR. Because of this, you want to make sure that your credit score is in the best shape possible before you apply for car loan refinancing. Refinance Requirement #2: Your CarLenders almost always have requirements on the condition of your car when you want to refinance. If your car is more than ten years old or has more than 100,000 miles on it, lenders may think it is too risky to refinance. The older your car is and the more miles it has on it, the more likely it is to have something major go wrong. Depreciation is a major concern for many lenders. If your loan is underwater, meaning that you owe more on the car than the car is worth, you will most likely not be able to refinance your car. Keep an eye on depreciation throughout the life of your car loan to ensure that you are not in this situation. Refinance Requirement #3: Your Current LoanThere are a few terms in your current loan that will dictate whether or not you are able to refinance your car loan: the time left on your loan, your current payments, and prepayment penalties. The Time Left on your Current LoanNew lenders often have requirements about how much time is left on your current loan. If there is less than a year left on your loan, lenders may not choose to approve you. Car loans are front-loaded amortized loans, meaning that the majority of the interest is paid in the beginning of the loan. This means that as the loan nears the end, you are paying less and less in interest and more and more in principal. At a certain point it is not worthwhile for a lender to refinance you, as they will not really be making any money off of you. But keep in mind that at that point it probably won’t make sense for you either, as you won’t really be saving any money.Prepayment PenaltiesYour current loan may have prepayment penalties that may make refinancing your car difficult. Check your current contract closely to see if there are any penalties. If it’s unclear, then call your lender and ask them outright. If the prepayment penalties outweigh any savings from refinancing, it will probably not make sense to refinance even if you do qualify.Your Current PaymentsStaying current on payments matters for your credit score, but it is also something that new lenders will check specifically. They want to ensure that you are up to date on payments with your current lender. If you are not paying your current lender in full with consistency, it’s probably not in their best interest to refinance your car loan. I meet the car loan refinancing requirements; now what?If your credit score is good or has improved, your car qualifies for refinancing, and your current car loan meets the above criteria, then you are probably wondering “how do you refinance a car loan?” The good news is it’s actually really simple!Step 1: Do Your ResearchLook around for a few different lenders that have good reviews. Look for a mix of traditional banks, credit unions, and online lenders. You will have to actually apply to get terms and rates for comparison, but you can do some of the legwork ahead of time and make sure their current customers are happy. If you want to save yourself a lot of hassle (and a lot of money!) contact Auto Approve and we can get the process started for you. We have relationships with hundreds of lenders across the country and can help get you the best offers. Step 2: Apply to a Few Different LendersThe application process is similar to your original car loan application. You will need the following to get started: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. (Just think: if you use Auto Approve, we can handle all of these tedious applications for you!)Step 3: Compare Rates After all of your applications are submitted, you should start hearing back with different car loan APRs and terms. Compare all of the terms and see what offer is the best for you.Step 4: Sign and Start Saving MoneyOnce you have picked the best car refinancing option, sign on the dotted line and start seeing the benefits of refinancing immediately. (And if you use Auto Approve for your car loan refinancing, we even handle the boring DMV paperwork!)And those are the requirements of auto refinancing.So don’t wait any longer; get started with Auto Approve today and pay less monthly when you refinance your car loan!GET A QUOTE IN 60 SECONDS

We’ve all heard how fast cars depreciate. The second you drive them off the lot it is estimated that they lose about 10% of their value. But what about motorcycles? Do they depreciate the same way? Today we are talking about why motorcycles depreciate and how fast they depreciate in value.What is motorcycle depreciation?Motorcycle depreciation is the difference between how much your motorcycle was originally worth and how much it is worth currently. Depreciation happens to everything we own, from our cars and motorcycles to our computers and phones. The value of objects tend to decrease as they get older because they are more likely to break and become more out of style as time goes on. From the moment you buy a motorcycle or commit to a motorcycle loan and drive it off the lot, the value of your motorcycle will reduce, then continue to depreciate the more you drive and the more wear and tear your vehicle accumulates.When does a motorcycle depreciate the most?Like cars, motorcycles depreciate the most in the first two years. Motorcycles tend to lose 5% when they leave the lot, and then lose about 19%-27% by the end of year two. After the initial two years, motorcycles lose about 5% per year after that, up to year ten. After year ten motorcycle depreciation drops to about 2%-3%, as many owners don’t want to deal with the maintenance issues required by older motorcycles. Why do some motorcycles depreciate more than others?Motorcycle depreciation varies a lot from model to model. This depends on a number of factors.Production Numbers. The fewer of a certain model that were built and sold, the less they tend to depreciate. Since they are more rare, they will retain their value more.  Accident History. If the motorcycle was in any accidents, it will accelerate depreciation. Condition. If the motorcycle is well maintained, it will retain its value more. The more dents, scratches, and oil buildup the motorcycle has, the less it will be worth as years go on.Mileage. The more miles a motorcycle has, the less it will hold its value.Fads and Trends. If the motorcycle was trendy one year, it will most likely fade from the limelight and depreciate faster. If however the motorcycle was iconic for one reason or another (think the 1990 Harley Davidson Fat Boy from The Terminator), it may depreciate less as there will be a longer lasting market. There are many factors when it comes to motorcycle depreciation, but depreciation mainly boils down to how desirable the make and model is, and how well the motorcycle has been maintained. Do some brands depreciate faster than others?According to MotorcycleHabit.com, some motorcycle brands have a tendency of depreciating faster than others. Here are their fastest depreciating brands:Victory Motorcycles. They were discontinued in 2017, causing an increase in depreciation. Hyosung Motorcycles. They are depreciating quickly because they are a new brand and are not widely trusted yet. Until the brand has been around for a bit longer, they will depreciate at a faster rate.BMW Motorcycles. These depreciate quickly because the people who buy them tend to get new models every few years, causing them to depreciate quicker. Triumph Motorcycles. New models tend to depreciate quickly because they have struggled as a business throughout the decades. Honda Motorcycles. Honda motorcycles tend to depreciate more simply because they have very high production numbers, thus there are a lot of them on the market. This drives down their price and causes them to depreciate quicker than other brands.How do you calculate depreciation on a motorcycle?If you are looking to make a quick calculation on the depreciation of a motorcycle, you can follow the steps below.Determine the Original Cost of the MotorcycleHow much did you originally pay for the motorcycle? Whether it was new or used, find out how much you paid.Determine the Salvage ValueUse Kelley Blue Book or a similar website to estimate what your motorcycle is currently worth. You will need the make, model, year, and current condition of the motorcycle to give you an approximate value. Determine the Useful LifeHow many years have you had the motorcycle? Or how many years will you have had the motorcycle when you decide to sell it?Calculate the Motorcycle DepreciationTo calculate the depreciation you can use the following formula.(Cost of Motorcycle - Salvage Value) / Estimated Useful Life = Annual DepreciationLet’s plug in some numbers to see how this is done. Let’s assume your motorcycle initially cost  $13,000. You know that you will be able to sell it for $2,000 according to Kelly Blue Book, and you have had it for 8 years.(Cost of Motorcycle - Salvage Value) / Estimated Useful Life = Annual Depreciation($13,000 - $2000) / 8 years = Annual Depreciation($13,000 - $2000) / 8 = $1,375 per yearHow do you stop motorcycle depreciation?While it’s impossible to stop motorcycle depreciation completely, there are some steps you can take to reduce its effect.Reduce your mileageCutting back on driving is an effective way to curb depreciation. The less miles you put on your motorcycle, the less it will depreciate.Keep up on maintenanceMake sure to keep up on maintenance on your motorcycle. Regular oil changes, air filter changes, and shock replacements are just some of the routine maintenance you should keep up on. Keep your exterior clean and ding freeWash and wax your motorcycle regularly to protect the paint and keep the exterior looking as new as possible.Keep good recordsKeeping up on maintenance records is good practice in general, and can help increase your motorcycle’s value.How can depreciation affect your loan?If you took out a motorcycle loan to purchase your bike, depreciation is definitely something you need to be aware of. If depreciation occurs very suddenly, you risk becoming upside down in your loan, meaning that you owe more on your loan than the motorcycle is worth.Do your research before you buy your motorcycle to ensure that the model you are purchasing does not depreciate abnormally fast, and do what you can to control the depreciation through proper maintenance. That’s everything you need to know about motorcycle depreciation.Depreciation is an inevitable part of ownership, but it’s good to be aware of how fast and why your motorcycle depreciates in value. If you have a loan out for your motorcycle, you should look into motorcycle refinance today. Motorcycle dealerships rarely give good rates to consumers, so you are probably overpaying on your loan by a lot every month.Don’t risk an underwater loan; refinance today with Auto Approve to start saving money!GET A QUOTE IN 60 SECONDS

Refinancing your car can be a very beneficial move for you. But how do you know when the timing is right? Today we are talking about trends in the auto finance industry and how you can decide if refinancing your car loan is a good idea.Interest rates are lower than ever but going up soon, making auto refinance a great option if you act now.Is it smart to refinance a car loan right now?Let’s talk about the auto finance market for a minute.Four times a year Experian releases a State of the Automotive Finance report which outlines a number of statistics about how we purchase and finance our vehicles. In the fourth quarter of 2021, this report gave us some interesting facts.In Q4 2021, the average new car loan was $39,721. This is up from $35,421 in Q4 2020.In Q4 2021, the average monthly car loan payment was $644. This was up from $579 in Q4 2020.In Q4 2021, the average loan rate was 3.86%. This is down from 4.3% in Q4 2020. And this is down from 5.26% in Q4 2019.In Q4 2021, the average loan repayment period was 69.66 months. This is up slightly from 69.63 months in Q4 2020.There are a number of lessons we can glean from these numbers. First off, we are spending significantly more per vehicle purchase, upping our average price tage by over $4,000 in just one year. This is, not surprisingly, causing our monthly payments to increase significantly by over $60 per month. BUT it also means that interest rates are lower than ever. In one year the average loan rate dropped by over .4%, which is pretty significant in the world of auto finance. So what does this mean for someone who already has a car loan? Well, it means that your chances of finding a lower car loan APR are very good. And that can translate to saving you quite a bit of money.Let’s talk about some reasons that refinancing your car loan might be a good idea.What is a good reason to refinance a car?There are four main reasons why refinancing your car loan may be a good idea. You can get a lower interest rateAs we went over before, the market rates are down significantly. The average APR is down over .4% from 2020 and down over 1.4% from 2019. Even if your credit score hasn’t changed, you may qualify for a lower car loan APR.  If your credit score has increased since your initial financing, you could stand to get a much, much lower APR when you refinance. Your credit score may have increased if any of the following apply to you:You have made consistent, full, on-time paymentsYou have had a negative event expire (like a bankruptcy)Your credit limit has increasedYou haven’t had a lot of credit inquiriesYour credit utilization score has increased. This ratio is determined by adding up all of your credit card balances and dividing it by your available credit. This number should ideally be less than 30%Check your credit score and compare it to the score you had when you initially applied. If it’s either the same or better, you should look to refinance your car loan and get a lower car loan APR. You want to pay off your car fasterThe average repayment period for a new car is almost six years. This is a long time to have a loan on a car. Keep in mind that cars depreciate faster than most assets, and this makes it all too easy for us to become underwater in a car loan.If you are conscious of this, you may want to prioritize paying your car off faster. And refinancing your car can help you do this in the most money-conscious way. You can of course make extra payments on your existing loan, so long as they do not charge you prepayment penalties. But you can save much more money by refinancing your car loan to a lower interest rate and changing the repayment period. Interest rates tend to decrease when your repayment period decreases, and increase when your repayment period increases.Refinancing your car loan will allow you to lower your interest and pay off your car faster and more efficiently.You are having trouble with monthly paymentsIf your finances have changed for one reason or another, you may be having trouble making your monthly car loan payments. Refinancing can allow you to lengthen your repayment period, which will lower your car loan payments every month. It’s important to keep in mind that this usually means you will be paying back more money overall for the duration of the loan, unless you are able to drastically reduce your interest rate as well.You want to add or remove a cosignerAdding or removing a cosigner to your loan is a very common reason to refinance, whether the reason is personal or financial. You cannot simply add or remove a cosigner from your existing loan, so refinancing your car loan is your best bet to amend this.Adding a CosignerAdding your friend or partner to the loan can secure you a better interest rate and reduce your overall payments, since you will be splitting the monthly cost. The lender will consider your joint income and both of your credit scores when determining an interest rate. If times are tough for you financially, this might be a good option for you if you have a friend or partner who is willing to do so.You might also want to add your child as a cosigner to help them build their credit. It’s difficult to start building credit as a young person, and refinancing your car loan and adding them as a cosigner is an easy way to do so.Removing a CosignerRefinancing your car loan is also necessary if you want to remove a cosigner. Maybe you had a cosigner on the original loan because your credit wasn’t the best, but you don't need the help anymore. Maybe you were in a relationship that has now gone south and you need to separate from that person financially. Either way, refinancing your vehicle will allow you to sever that financial relationship.How soon is too soon to refinance a car loan?Refinancing your car loan sounds like a great idea, but when is the best time to do so? What should you consider when it comes to the timing of your refinance?You have to wait for the ink to dry If you either just bought your car or just refinanced your car loan, you will have to wait 60 to 90 days until all of the paperwork is filed and settled. There is no amount of time that you need to wait, you simply need to wait until the paperwork is complete so that you can restart the application process.Consider waiting 6-12 monthsAgain, there is no amount of time that you need to wait to refinance your loan, but you may find it to be more beneficial if you wait 6-12 months. Experts recommend this because it will allow you to make consistent, on time payments to your current lender, which will help your credit score and make you more desirable for prospective lenders. It will also give the new credit inquiries a chance to fall off of your credit report. All of this will give you a better chance of securing a lower car loan APR and making the car loan refinance loan worth it.Don’t wait until you have less than a year left on your loanIf you have less than a year left on your current auto loan, it will most likely not be worth it for you to refinance your vehicle. There’s also a very good chance that lenders will not want to refinance with you. This is because car loans are front loaded amortized loans, meaning that in the beginning of the loan you are paying mostly interest, and towards the end of the loan you are paying mostly towards principal. The earlier you refinance, the more money you will save in interest. And the earlier you refinance, the more money the refinance lender will make off of you. Waiting too long will make refinancing a waste of time for both you and the lender.And that’s why refinancing your car loan might be a great idea for you.Refinancing your car loan is a big decision, and Auto Approve is here to help. We have relationships with lenders from all across the country and can help you apply, sign, and start saving money today. Auto refinancing is our specialty, so you know you are in good hands with us. Don’t just take our word for it – our TrustPilot reviews show just how happy our customers are. So don’t wait, take advantage of today's low interest rates and refinance with Auto Approve today!GET A QUOTE IN 60 SECONDS

Refinancing your car loan can seem like a complicated and confusing process. But it is actually super simple and easy! Refinancing is when you take out one loan to pay off another loan.  But how do you know what the payoff amount will be?Here’s how to calculate your car loan payoff amount and refinance your car loan.How to Calculate Your Loan Payoff AmountCheck for Prepayment PenaltiesWhen determining your payoff amount, you need to check to see if your current loan has any prepayment penalties. Some do not have any fees associated with an early payoff, while others will have fees that are high enough to discourage refinance.Look carefully through your paperwork to determine what the penalties are. If it is unclear to you, call your lender and ask. Call or Go OnlineThe easiest way to calculate your total loan payoff amount is to go online or call your lender directly. Many lenders have calculators available so that you can pick a date in the future and calculate your payoff from then. You will most likely need to have your account number and your VIN available to log on to get this information. So be sure to have your information handy (your account number should be listed on your latest car loan statement).Do the Math YourselfIf you prefer, you can do the math yourself to get an estimate. Get out your loan contract and determine the total principal amount on your loan. Then you will need to calculate your interest payments. You do this by calculating your annual percentage yield (APY). You can use the formula below:APY= (1- rate per period)(number of periods per year - 1)This gives you the total cost of interest. You will need to add this to the principal amount of the loan. Then, subtract any payments you’ve already made. Add in any prepayment penalties, et voila, you have your total loan payoff amount. Payoff Amount = Principal + APY + Prepayment Fees - Previous PaymentsOne you have an amount, you can determine whether or not it is worth it for you to refinance your car loan.Is it Worth it to Refinance A Car Loan?So how do you decide whether or not it’s worth it to refinance your car loan? You already know how much it will cost you to pay off your existing loan, so now you need to determine how much your new loan will cost you. This will depend on the deals you are able to get for your refinance. Refinance offers are based on a number of factors, including market interest rates and your personal credit score. The higher your score is, the better chance you have to get a lower interest rate (and therefore save more money).Set yourself up for the best refinance offers by doing the following:Make Sure Your Credit Score is in Tip Top ShapeRequest a copy of your credit report and look for any inaccuracies. Cross check your report with your credit card and bank statements and be sure everything lines up. If there are any problems, report them to the credit bureau immediately. If your score is a little low, consider waiting a few months to refinance your car loan. Use this time to make consistent, on time payments and pay down any accounts that have a high credit utilization ratio (the amount of debt compared to your credit limit). Set up autopay on any accounts that have that option so that you don’t miss a beat. Make Sure Your Car QualifiesSome refinance companies will not refinance your loan if your car is ten years or older or has over 100,000 miles on it. Be sure your car qualifies before you get too deep into the refinancing process.Do Your ResearchResearch different lenders to get an idea of what terms and rates are being offered. Until you apply you will not have any solid number to use to calculate how much money you will save. But you can get a sense of what some offers look like, and you can see what their current customers are saying about them. Which lenders are transparent with their fees and payments? Who has good customer service? All of these things are important when decking who your next lender will be.Play Out Some Different ScenariosSince you will not have offers until you actually apply, play out a few different scenarios with a pad and paper. See what your payments would look like at 6% over 4 years, or at 5.5% over 3 years. This will give you a ballpark of how much money your new loan will cost you. It will also show you where your tipping point is: that is, at what point refinancing will not make sense for you.What is Needed to Refinance A Car Loan?When you are ready to refinance your car loan, you will need to have certain documents. Here are some of the documents you may be required to provide: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. Note that PO boxes are not acceptable as proof of residence.Proof of insurance. Having all of these documents together and ready to go will help make the process of applying for refinance quick and easy.Use a Company that Specializes in Auto RefinanceUltimately, your best bet is to use a company that specializes in auto refinance, like Auto Approve. When you use a company that deals in auto refinance day in and day out, you know you are in good hands. We can help you easily apply and compare rates, and help you decide if refinancing your car will be worth it for you.But won’t it be more expensive to go through Auto Approve? Absolutely not! In fact, we NEVER add on to the rates from our lenders, we pass all of the savings on to you. Refinancing a car loan is easy when you are in the right hands.And that’s how to calculate your loan payoff amount and decide if refinancing your car loan is right for you.Don’t wait, get started with Auto Approve today. Get your free quote to see how much money we can save you on your monthly cay payment!GET A QUOTE IN 60 SECONDS