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How Long Should I Wait To Refinance My Car Loan if My Rate is High?

02/25/2022 23:00
Is your car loan APR high? If so, you are probably thinking about refinancing your car loan.But how do you know when it is the right time to refinance a car loan? Refinancing is all about timing, after all. So let’s jump in!How Long Should You Wait To Refinance Your Car? It is possible to refinance car loans at any point. But when is it the most beneficial to do so?At the bare minimum, you will need to wait 60 to 90 days to refinance your car loan. This is about how long it takes to complete all of the necessary paperwork and get everything filed where it needs to go.Experts recommend waiting at least six months to refinance your car loan. This will give your credit score a chance to bounce back after the initial hard inquiry on your account. It will also give you the chance to make consistent, on time payments to your current loan. This will help improve your credit score and prove to future lenders that you are reliable when it comes to repayment. The earlier you refinance your car loan, the more beneficial it will be to you. Why? Because car loans are amortized and front loaded. This means that in the beginning of your loan, your payments go more towards the interest than towards the principal. So when you are refinancing to a lower rate it will be more beneficial when you are paying the most towards that interest, i.e. in the beginning of the loan.You want to find the sweet spot where your credit score is at its best, ensuring you will get the best interest rates available, and where you are paying a lot towards interest, ensuring it will be most beneficial to you.Pro Tip: Be sure to check your existing auto loan before you refinance to see if there are prepayment penalties. These penalties can be heavy and may outweigh the benefits of refinancing.Understand How A Car Refinance Works Before You SignBut wait: how exactly does car refinance work?Car refinancing is when you pay off your existing car loan with a new loan, one that ideally has better terms and a better interest rate. If you have a low car loan APR and good terms, then great! You don’t need to worry about refinancing. But if you are like most car owners out there, you are probably overpaying on your car loan. So what are the qualifications to refinance your car loan?Your car’s age and mileage. If your car is older or has more than 100,000 miles on it, lenders may not want to refinance your loan.The time left on your loan. If you have less than a year left on your loan, lenders may not see it as worthwhile to refinance your loan.Your credit score. Your credit score should be in good standing to refinance your car loan. Your current payments. Lenders will want to see that you are up to date on your payments with your existing lender.Ok, so you meet the qualifications. But why should you consider refinancing your car loan? How beneficial can it really be? Refinancing your car loan can be a great idea for a lot of reasons.You can save money in the long run. A lower APR means that you are paying less in interest over the length of the loan. This can add up to thousands of dollars over the years.You can lower your monthly payments. If you need a little more breathing room every month, refinancing your car loan can lower your APR, which will lower your monthly payments. It will also allow you to change your repayment period. This means that you can choose to repay your loan over a longer period of time, which will automatically lower your monthly payments. You can add or remove a cosigner. People have cosigners for many different reasons. Maybe you have added on a friend because they have a better credit score, and it secured you a better rate. Or maybe you have your child on as a cosigner to help them build credit. No matter what the reason is, any change that you may want to make to your loan arrangement will require a refinance. You cannot simply add or remove a cosigner from an existing loan.Car refinancing has a lot of benefits and can save you a lot of money in the long run.What Fees Do Car Refinance Companies Charge?Refinancing a car loan is much different than refinancing a mortgage. While mortgage refinancing requires appraisals and closing costs, auto refinancing is much simpler. Typically your biggest fee will be your title fee, which is usually around $75. On top of that, the lender may charge a processing fee of $10 to $15 dollars. If your existing loan has prepayment penalties, you will be required to pay those as well.Some car refinance companies will charge additional fees when they refinance your car. This often comes in the form of them tacking on a percentage to the APR that the lender offers. At Auto Approve, we don’t believe in that. We want the savings to be passed on right to you. That’s why we never mark up our rates the way that some of our competitors do.Auto Approve is committed to making the auto refinancing process as easy as possible. That’s why all you need to do is head to our online quote form, answer a few quick questions, and let us handle the rest! We will shop around and get you multiple quotes from different lenders, handling all that legwork so you don’t have to. Then you can pick which deal and lender is the best for you!After you pick your offer, we will send you all of the documents that you need to sign electronically, so you can complete your refinance from the comfort of your home. And that’s it! We will even handle the pesky DMV paperwork for you. You don’t need to take our word for it. Our customers are raving about how easy and hassle free refinancing a car loan with Auto Approve is. We have an A+ rating with the Better Business Bureau and our customers have given us a whopping 96% would recommend rating on LendingTree. Not to toot our own horn, but we definitely know what we are doing when it comes to refinance.The sooner you refinance your car loan, the more money you can save in the long run.So, what are you waiting for?GET A QUOTE IN 60 SECONDS
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Got Your Truck Loan Directly From The Dealer? Refinance Now

02/23/2022 23:00
Years ago, you thought that a one-stop-shop for your new truck would be the best option for you. You could pick out your truck, go for a test drive, arrange your financing, and drive off in your new car in just a few hours. Unfortunately, if this sounds familiar, there’s a good chance you are overpaying for your truck loan.If you got your initial truck loan from the dealership, refinancing could save you a ton of money.Let's take a look at the who, what, why, and how.Is it better to get an auto loan from your bank or the dealership?First off, let’s talk about the differences between getting a vehicle loan from a bank or lender and getting one from a dealership. There are pros and cons to both, but in general it is better to get your loan from a lender. What is dealer financing?Dealer financing is simply when the truck dealership sends out your information to different lenders and banks. They receive the offers and present them to you, but with an added percentage (their markup).What is direct financing?With direct financing you get approved for your financing before you shop at the dealership. You have to do more of the legwork, but you avoid the dealer markups. What are the advantages of dealer financing?There are two main advantages of financing through a dealership: convenience and incentives. The main advantage of dealer financing is convenience. You simply fill out some paperwork, and they will handle getting all of the quotes for you. They already have relationships with banks and lenders, so this typically happens pretty quickly, and you can drive off in your new car in just a few hours.Another advantage of dealer financing is the offers and incentives they may give. They can offer promotional rates and discount their inventory at certain times. What are the disadvantages of dealer financing?The major, and most important, disadvantage of dealer financing is that it will most likely cost you more in the long run. Since they are acting as the inbetween for you and the lender, they are simply marking up the rates.Additionally, the “deals” that dealerships run are oftentimes not worth the money you will save by going through a traditional lender. A little savings up front rarely outweigh an increased APR of 1-2%.What about “No Credit, No Problem”?A big draw of dealership financing is the “no credit, no problem” advertising. They tell you that even if you have very poor credit, they can still approve you for financing that is beyond your means. But these deals are dangerous, as they are high risk loans and will carry a much higher APR than traditional loans.What about 0% financing?Sometimes dealers will offer 0% financing. But how do they make money off of this? Well, they use this as a way to get people in the door. They can either raise the sale price of the car beforehand, or use it as a chance to get rid of older models that aren’t selling as well. Either way they are making money, just not through the financing.How much do dealers make off financing?Dealers essentially “buy” the financing for a vehicle at one rate, add on to it, and then “sell” it to the consumer for the marked-up rate. Each sale is different, but typically dealerships can make thousands of dollars from the marked up rates of financing. The dealerships do have some wiggle room with this – after all, they can choose how much they want to make each sale. This means that dealers can reduce the APR at certain times to encourage sales and meet monthly sales goals (it’s true that buying a car at the end of the month can get you some better deals).When should I refinance my truck loan?If you got your truck loan from a dealership, you should definitely think about refinancing as soon as possible. After all, the sooner you refinance your car or truck, the sooner you will start to save money.Again, if you financed through a dealership originally, refinancing is most likely a good option for you right now. But here are some other factors that may help you decide that refinancing is the right move for you.Your credit score and credit worthiness have improvedIf your credit score has improved, you will most likely be approved for a lower APR. Lenders reserve their best rates for customers with the highest credit scores. Your credit score is affected by a combination of payment history, amounts owed, credit history length, credit mix, and new credit. It is very possible that one of these areas has changed since your initial financing. Check your credit report to make sure everything is accurate and up to date. This will put you in the best position to get a good deal when refinancing an auto loan.Market interest rates have decreasedIf the market rates have decreased since you originally financed your truck, there’s a good chance you can get a lower interest rate if you refinance. Market rates are set to increase later this year, so the time is now to commit to refinancing. You are having trouble making monthly paymentsIf you are having trouble with your monthly payments, refinancing your car loan or truck loan may help a great deal. Refinancing can help you with monthly payments in a few ways. First of all, it can help you secure a lower interest rate which will automatically reduce your monthly payments. This will also ensure that you will save on the total amount that you pay back.  Second, it will allow you to adjust your repayment plan. Lengthening your repayment plan will allow you to pay off your loan over a longer period of time, making your payments every month significantly lower.There are not significant prepayment penalties on your original loanBefore you get too deep into refinancing, you want to make sure that your current loan doesn’t have any deal-breaking prepayment penalties. If your loan does have some significant penalties for paying off the loan early, then you should do the math to determine if it is still worthwhile to refinance. You want to add or remove a cosignerIf you are looking to either add or remove a cosigner, you will need to refinance your car or truck loan. There are a number of reasons why adding or removing a cosigner might be a good move for you – read our blog post all about cosigners here.Where can you refinance a truck loan?You can refinance your car loan with most lenders that do auto refinancing – including the dealership. But you will likely not help yourself by refinancing through a dealership.You can refinance a truck loan with most lenders, including credit unions, traditional banks, and online lenders. You want to do your research and be sure to consider the following:The interest rate. Where can you get the most competitive interest rate?The prepayment penalties. Are there prepayment penalties? Your cash flow. Do you need a longer repayment plan so that your monthly payments are on the lower end? Or would you prefer a shorter repayment plan so that you can pay off the loan faster and save money overall? Customer satisfaction. Are their customers happy, or are they frustrated? Use websites like TrustPilot and the Better Business Bureau to check out each lender.  Hidden fees. Look over the terms to see what additional fees you are being charged. But did you know you can save yourself a lot of time and energy by using a company that specializes in auto refinance? Auto Approve is the fastest and most effective way to refinance your car or truck loan. We have established relationships with lenders from all across the country, and we use those relationships to get you the best deals possible. We handle all of the paperwork for you so you don’t have to worry about it. Just head over to our online quote form, fill out some information, and we can have offers for you within minutes. The best part? We never mark-up our rates – EVER! The rates we get from the lenders are the rates we pass on to you. Once you pick a deal that works for you, we even handle the DMV paperwork! (It seriously couldn’t be any easier)But don’t just take our word for it. We have a 96% would-recommend rating on Lending Tree and an A+ rating from the Better Business Bureau. And if that’s not enough, you can head over to our TrustPilot page to see exactly what our customers think.In short? If you got your initial truck loan from the dealership, refinancing your auto loan with Auto Approve could save you loads of money. So what are you waiting for? Start saving money with Auto Approve today!!GET A QUOTE IN 60 SECONDS
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Dos and Don'ts To Refinance A Car Loan

02/21/2022 23:00
There’s a lot of information out there when it comes to refinance. Car loan refinancing doesn’t have to be complicated though! Today we are talking all about the dos and don’ts of refinancing and answering all of your questions. How To Prepare For An Auto RefinanceBefore you commit to auto refinance, there are a few things you should do to prepare, and a few things you shouldn’t do. So let’s talk about the dos and the don’t of auto refinancing!Do: Wait at Least 6 Months Refinancing your car is all about timing. Experts recommend waiting 6 months to a year before refinancing your loan. This will give you the chance to make consistent, on time payments to your lender, which will make your future lender more confident in your repayment ability. This will help your credit score. It will also give your credit score a chance to bounce back after the initial hard inquiry of your first financing request.Don’t: Wait Until There’s Less than a Year Left On Your LoanYou don’t want to wait too long however to refinance your car loan. Car loans are front loaded amortized loans. This means that in the beginning of your loan, most of your payment is being applied to the interest of the loan. As your repayment period progresses, you will pay more and more towards your principal. By the last year of your repayment, most of your monthly payments are applied to the principal. When you refinance, the goal is to save money by reducing the amount of interest. So the earlier you refinance your car, the more money you will be able to save in overall interest. So don’t wait until your loan is nearing its end to refinance your car loan.Do: Make Sure Your Car is EligibleBefore you get too deep into researching your car loan refinance, make sure your car is eligible. If your car is older than ten years, or has more than 100,000 miles on it, it may not be eligible to refinance.Don’t: Apply to Refinance if Your Loan is UnderwaterUnfortunately, if your current loan is underwater (meaning that you owe more on your car than your car is worth) you will have a very difficult time trying to refinance. If your loan is underwater, check out our tips here on how to get out of your current loan.Do: Check Your Credit Score and Credit ReportBefore you apply to refinance your car, you want to make sure your credit score is looking good. Check your score and get a copy of your credit report. You can get a copy of your credit report for free three times per year (once from each of the major credit bureaus). Look for any discrepancies in your report – this could include missing payments, inaccurate credit amounts, or mistakes in your personal information. If you notice any problems, contact the credit bureau immediately to dispute.If your score could use a boost, check out our tips on increasing your credit score.Don’t: Spread Out Your ApplicationsWhen you apply for financing, it will trigger an inquiry on your credit report. This inquiry counts against you on your credit report, but only for about a year. But multiple hard inquiries can add up and drag your score down. The credit bureaus know that this can make it difficult to apply to different lenders, so they allow a window of fourteen days where all hits will count as one hard credit inquiry. So don’t spread out your applications over a span of a month or two – better yet, use a company that specializes in auto refinance, like Auto Approve. They will apply to different lenders in a short period of time so you can compare quotes easily.Do: Keep an Eye on Market RatesThe interest rate that you are offered will depend somewhat on the market rates. Right now, market rates are still low. It is a great time to think about refinancing your car loan before the rates increase (and the Federal Reserve has already announced that rates will be increasing this year). If your car loan is a few years old, chances are you can get a better interest rate now than you got initially.Don’t: Wait Refinancing is about striking when the iron is hot. And right now, the iron is red hot. Don’t wait and put off refinancing if you believe that rates will get lower in the near future. There’s more than a good chance that they will not. Instead, get your ducks in a row and apply for refinancing sooner rather than later.Do: Read Your Current Contract Carefully for PenaltiesBe sure to read the fine print in your current loan agreement. Are there penalties for paying off your loan early? Sometimes these fees can add up to a lot of money. Don’t: Skip the MathIf there are prepayment penalties, it’s important to sit down and do the math. Will refinancing be worth it? Calculate how much you can save with a lower interest rate or shorter payment schedule (or both!) and see if the savings will outweigh the penalties.Do: Shop Around for the Best RatesLike everything else in life, it pays to shop around. The only catch is that you will often need to formally apply for refinancing to get offers to compare. Look around online for different credit unions, traditional banks, and online lenders. Look through average rate offers and customer satisfaction ratings to pick 3-5 lenders. Then apply to all of those lenders (within fourteen days) and compare the offers that come back.Don’t: Rush into a Deal Don’t simply accept the first offer that rolls in. Make sure you get all of your offers together and find the deal that is right for you. Be sure to think about the following when making your decision:What is the interest rate being offered? What is the repayment period?Are there prepayment penalties? (Remember: there is no limit to the amount of times that you can refinance, so make sure you don’t agree to prepayment terms that you may regret in the future.)Does the lender have good customer reviews?You want to take your time and compare all of these factors before signing any dotted lines.Refinance Your Auto Loan The Right WayFollowing our tips above will help ensure that you refinance your auto loan the right way. But how do you know the time is right to refinance? Auto loan should be considered if any of the following applies to you:Your credit score has improved. If your credit score has improved, you will most likely be eligible for a better car loan interest rate, which can save you a lot of money in the long run.The market rates have improved. If your loan is a few years old, there’s a good chance the market rates have decreased since your initial loan. This can get you a lower car loan interest rate and, again, save you a lot of money in the long run.You need more breathing room in your monthly budget. If your monthly budget is a little tight, refinancing your car loan can allow you to change your repayment period. By lengthening your repayment period, you can reduce your monthly payments significantly and get you some extra breathing room every month. You need to add or remove a cosigner. The only way to add or remove a cosigner from your existing loan is to refinance. If any of the above apply to you, refinancing your auto loan is probably a good idea. After all, the sooner you get your loan refinanced, the sooner you will start saving money. Auto Approve knows how important timing is when it comes to refinancing, which is why we make the refinancing process as quick and easy as possible (we even handle all of the paperwork!)Find The Best Auto Loan Refinance For YouThere’s a lot to think about when choosing a refinancing company. Believe us, we know how overwhelming it can be, not to mention time consuming. So how do you find the best auto loan refinance companies?The answer is easy. Use a company that specializes in auto refinance! At Auto Approve, auto refinance is our passion. We know the ins and outs of the application processes and we know what lenders want to see to make the best offers possible. We have relationships with some of the most trusted lenders in the business, and we use those relationships to secure you the best loan terms possible.But don’t just take our word for it. We have nearly 2,000 five star reviews on TrustPilot (and more reviews are rolling in every day!) and an A+ rating with the Better Business Bureau. And those are the dos and don’ts of refinancing your car loan.So what are you waiting for? Get a free, instant quote from Auto Approve today to get started on your auto loan refinance! GET A QUOTE IN 60 SECONDS
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How to Refinance a Car Loan in 5 steps

02/17/2022 23:00
Refinancing your car loan may seem overwhelming. You know you can save a lot of money by doing so, but it’s hard to know where to start.While it may seem complicated, refinancing is actually quite easy (and quick!) So if you are thinking about refinancing your car loan, follow our five simple steps and start saving money today!If you want to refinance a car loan, follow these five easy steps.1. Decide if refinancing is right for youFirst off, you need to figure out if refinancing is right for you. There are a few different things you will need to consider. How much time is left in your loan?While you are able to refinance your loan at any time, there are certainly times where it makes more sense to do so. Experts recommend waiting between six months and one year to refinance. This will give your credit score a chance to bounce back after the initial hard inquiries, and will give you an opportunity to make consistent payments. All of this will lead to securing a lower APR.Refinancing your car loan is more beneficial to you the earlier you do it. Car loans are front-loaded interest bearing loans, meaning that in the beginning of the loan more of your payments go towards interest payments, and towards the end of the loan more of your payments go towards the principal. So the earlier you refinance, the more you will affect the amount of interest you are paying. It is most likely not worthwhile pursuing refinancing if you have less than a year left on your original loan. At this point most of your payments will be applied to the principal. But it is always a good idea to do the math yourself to decide if you will save money or not.Does your loan have prepayment penalties?If your original loan has penalty payments for paying off your loan early, it may not be worth it for you to refinance your car loan. Read the terms of your current loan very carefully to determine what the penalties may be. If you are unclear on the prepayment penalties of your loan, be sure to contact the lender to find out.Has your credit improved?If your credit score has improved, you will be more likely to secure a lower interest loan. If your credit score has not improved, refinancing might not be worth it. 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%)The most important factors in your credit score are your payment history and your accounts owed, also known as your credit utilization ratio. If you have been more consistent with on time, full payments, your credit score may have increased a good deal. If you have paid down some of your debts and lowered your credit utilization ratio, this also may have increased your credit score significantly.Check your credit score to see where you are at. Better yet, get a copy of your credit report. You can get a copy of your credit report for free three times per year. Read through it thoroughly to check for errors and report any discrepancies. Catching errors early on can save you from a huge headache in the future.Are the market rates good?Interest rates depend greatly on the market rates in general. If you first secured your loan when the rates were high and they have now decreased, it’s probably worth looking into refinancing. Pro Tip: Market rates are set to increase this year, so now is the perfect time to refinance your car.Is your car eligible?You need to ensure that your car is eligible to be refinanced in the first place. If your car is more than eight years old or has more than 100,000 miles on it, you may not be able to refinance.2. Get all of your information togetherIf you’ve gone through the details of your loan and your credit report and determined that it does make sense for you to refinance, you will need to gather up all of the necessary paperwork. You will need the following information:Your information. This will often include your ID, social security number, and proof of residence (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, like recent pay stubs. Proof of insurance. Your lender will want to be sure that your car is insured.Loan information. You will need all of your current loan information, including the balance and the lender’s contact information.3. Look for lenders and start applyingOnce you have all of your documents together, you can start looking around at different lenders to refinance your car loan. You won’t really be able to compare rates and terms until after you apply and the offers start coming in. You should try to apply for refinancing with three to five different lenders. This will give you a few options to choose from, as well as give you some negotiating power. Start by looking around at a dozen or so lenders, including credit unions, traditional banks, and online lenders, and whittle your list down from there. Keep your eyes open for deals, and try to get your list down to three to five lenders.Be sure to apply for all of your loans at once. When you apply for financing, it triggers a hard inquiry on your credit report that will affect your score negatively for about a year. If you apply for all of your loans within a fourteen day period, they will count as one hard inquiry on your credit. If you were to space out your applications, it would count as multiple hard inquiries and affect your credit score negatively.Pro Tip: Using a company that specializes in auto refinancing, like Auto Approve, is the most efficient way to apply for refinancing. They have relationships with top lenders across the country so they can be sure to get you the best rates possible. Plus, they handle the paperwork so you don’t have to.4. Choose the best lenderOnce you have all of your offers, you will have to decide which one works best for you. Be sure to consider the following when making your decision:The interest rate. Who is offering the most competitive interest rate?The prepayment penalties. Are there restrictive prepayment penalties? There is no limit to the amount of times that you can refinance, so keep in mind that you might want to refinance again in the future.Your cash flow and the repayment terms. Do you need a longer repayment plan because your cash situation is a little tight? Or would you prefer a shorter repayment plan so that you can pay off the loan faster and pay less overall? You will have a choice within each loan offer, so compare all of your options to see what makes sense for you.Customer satisfaction. Look at each lender and check them out on websites like Better Business Bureau and TrustPilot. Are their customers happy, or are they frustrated? Do they have clear and concise communication with their customers, or are there hidden fees and delayed correspondence? Take all of this into consideration when deciding on a lender.Hidden fees. Look over the terms to see what additional fees you are being charged. Are there high administrative fees? Do they charge processing fees? Read all of the fine print to be sure you are not missing anything.There is a lot of information to consider, so determine what is most important to you when it comes to choosing a lender.5. Finalize documentsOnce you’ve picked a lender, it’s time to sign all of your documents. Most lenders and refinancing companies will take care of most of the paperwork for you. This will involve paying off the balance of the old loan and beginning payments on the new loan. It’s always good to reach out to the previous lender to ensure the loan was paid off in full. At Auto Approve, we know what a headache all of the paperwork can be. 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 we handle the rest (even the DMV paperwork!)And that’s how you can refinance your car loan in five easy steps.Refinancing your car loan doesn’t need to be scary or overwhelming. We’ve designed Auto Approve to be a one-stop-shop for your refinancing needs. All you need is your personal information and your car’s information, and that’s it! We will shop around for quotes and help you decide what makes the most sense for your situation. Just follow our five steps and you will be saving money in no time at all. Don’t wait, get started today!GET A QUOTE IN 60 SECONDS
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Is it Possible To Do An Auto Refinance in Someone Else's Name?

02/17/2022 23:00
If you are having trouble making your monthly car loan payments, you may be wondering if it’s possible to refinance your car in someone else’s name. Can someone else simply take over the loan while you keep the car? Can you do it through an auto refinance?How To Refinance Auto Loan For Another PersonSo you are wondering how to refinance a car in someone else's name. Traditionally speaking, you cannot simply refinance your car in another person’s name. But you can refinance your car twice to get the same result (bear with us, it’s a bit complicated, and there is no guarantee it will work in the long run).First, you need to add a cosigner onto your loan. So you will need to refinance once to add on your cosigner. Then, when that is complete, you will need to refinance again and remove yourself from the loan. So it will require you to refinance your car twice. Some lenders may think that not enough time has passed since your initial refinance, and there’s a chance you may not qualify.It’s important to ask yourself why exactly you want to refinance in someone else’s name. Depending on your answer, there may be a simpler option for you to refinance. Auto loan refinancing can be worthwhile in certain situations, while selling your car might make more sense in other situations.Here are a few reasons you might want to refinance with someone elseYour monthly payments are too highIf your monthly payments are too high, refinancing on your own might be enough to help make your payments more manageable. Refinancing your car can help lower your monthly payments in two ways. If your credit score has improved and/or the market interest rates have gone down since you originally financed your car, you may qualify for a lower APR. This will save you money in interest payments every month.Even if you do not qualify for a lower APR, refinancing your car loan will allow you to change the repayment period. Stretching out your repayment period will automatically reduce your monthly payments, because instead of paying back the loan over say 36 months, you can now stretch your payments over say 48 months. You will end up paying more in interest in the long run, but it can save you hundreds of dollars per month and make your cash flow situation much easier to manage.Their credit score can get you a lower APRIf your credit score is lower than your friend or family member, you may want to refinance in their name to secure a lower rate. But you don’t need to remove yourself entirely from the loan to enjoy the benefits of their high credit score. By adding them as a cosigner, the lender will consider your credit scores together. This can secure you a lower rate while still allowing you to keep your car and keep your name on the loan. Adding a cosigner can actually help improve your credit score. If the cosigner's credit can reduce your APR, you will be more likely to make consistent, on time payments. This can help improve your score a great deal by increasing the payment history portion of your credit score.You don’t want your car anymoreIf you want to refinance your car in someone else’s name as a means to get rid of your car, you will need to formally sell your car. In other words, you will need to transfer the deed and have them finance your car separately. You could also consider trading your car in at the dealership to get a different car. Which Auto Refinance Companies Let You Change Borrowers?Are there any auto refinance companies that will let you simply change borrowers on the same loan? Unfortunately, no. There is no way to simply swap one person’s name out for another. This is because interest rates and financing deals are highly dependent on the applicant’s unique situation and credit score. It is not a one size fits all loan – lenders make their decisions based on who they feel will most likely pay them back.How To Find The Best Auto Refinance Companies For YouWhile you cannot refinance your car loan in someone else’s name, you can refinance your car loan either independently or with a cosigner. Here’s what you should consider when looking for the best auto refinance companies. Interest RatesOne of the most important factors when deciding who to refinance with is the interest rate. By reducing the interest rate, you will automatically save money (and that’s the whole point, right?) The interest rate will be based on a number of factors, such as: Your credit scoreYour payment historyYour incomeYour debt-utilization ratioPrevailing interest rates The interest rates you are offered can vary greatly based on the lender, so you should be sure to check interest rates when comparing options. Prepayment PenaltiesSome refinancing companies have hefty prepayment penalties. Be sure to read the fine print of each offer to determine what you will be responsible for should you pay off your loan early. Remember, there is no limit to the number of times you can refinance, so you may wish to refinance again in the future. And you don’t want big penalty payments to stand in your way.Repayment TermsEach offer may have different options for repayment periods. Think about what works best for your cash flow situation – a shorter repayment period will save you money in interest but result in higher monthly payments, while a longer repayment period will cost more in interest but result in lower monthly payments. This can change your monthly budget a great deal, so be sure to think this decision through and see what works best for you. Customer Satisfaction RatingsIt’s always good to check out a company’s customer satisfaction ratings. What are their current clients saying? Do these lenders communicate clearly? Websites like TrustPilot, Better Business Bureau, and Lending Tree can give you insight into what other customer experiences are like.  Complaints with lenders are often related to issues with communication and an overall lack of transparency as to how your payments are being allocated. Read through comments and complaints to learn from the experiences of others and avoid problematic lenders.Choosing the Best Refinance CompanyUsing a company that specializes in refinancing, like Auto Approve, will make it incredibly easy to compare lenders. Auto Approve has relationships with some of the best and most trusted lenders in the business, so you can rest assured you are in good hands. While you can’t simply do an auto refinance in someone else’s name, you can refinance your loan either independently or with a cosigner to get better terms. If refinancing your car loan sounds like a good idea, get started with Auto Approve today! Our dedicated team is here to answer all of your questions and help you find the best lender for your auto refinance. GET A QUOTE IN 60 SECONDS
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What is a Good Rate for an SUV Loan?

02/14/2022 23:00
If you are in the market for a new or used SUV, you are probably wondering what is considered a good rate right now for financing. Or maybe you're wondering about where refinancing your SUV could save you money. While your interest rate will vary based on your credit score and credit history, we’ve looked at rates across the country to find out what the top rates are. Interest rates are determined largely by your credit score. Here we will discuss how you can increase your credit score to get the best rates for your SUV loan.Let’s talk about what are good rates for SUV loans and how you can get the best rates possible.Everything you need to know about SUV loan rates in 2022What are good rates for new SUV loans?In general, car loans for new SUVs will have lower rates than loans for used SUVs. This is because lenders view new SUVs as less of a risk. They are less likely to break down or have mechanical issues, and it is easier to predict how they will depreciate.So what is a good apr for a car loan, and specifically for an SUV loan? Below we have listed the average APR of new SUV loans in early 2022, based on credit score.781-850: 3.17% APR661-780: 4.03% APR601-660: 6.79% APR501-600: 10.98% APR300-500: 13.76% APRIf you find any rates lower than the average, you should consider it a good car loan APR. What are good rates for used SUV loans?Since used SUVs are a bit more of a risk than new SUVs, their interest rates tend to be a little higher. There is a much higher likelihood that something will go wrong with a used SUV. Below we have listed the average car loan APR of used SUV loans in early 2022, based on credit score.781-850: 3.80% APR661-780: 5.48% APR601-660: 10.10% APR501-600: 16.27% APR300-500: 19.32% APRIf you find any rates lower than the average you should consider it a good interest rate. How do you get the best interest rates for your SUV loan?When you look around at interest rates, you may be wondering how you can qualify for a better car loan APR. As we see by the brackets above, raising your credit score is the best way to ensure you get the best interest rate available. Your credit score is the most important factor in your interest rate. Lenders look at the following components to determine if you are creditworthy. After all, lenders need to ensure that they will make their money back. Payment History. This is the most important factor in calculating your credit score, accounting for 35% of your FICO score. Do you have a history of on time payments, or do you miss payments here and there? Are your payments always in full, or do you fall short every now and then? Lenders want to be sure you will pay back your debt on time.Amounts Owed. The amount of money you owe (your debts) are used to calculate your credit utilization score. This is the second most important factor in your credit score, accounting for 30% of your FICO score. This is calculated by dividing your total debt by your total credit limit. Example: Between all of your outstanding accounts, you currently owe $7,500. Your combined credit limit for all of these accounts is $75,000. 7,500/ 75,000 = .1 = 10% Credit UtilizationA credit utilization score below 30% is considered desirable for lenders. Credit History Length. The age of your credit accounts make up 15% of your FICO score. They look at the age of your oldest account, the age of your newest account, and the average age of all accounts. Having older accounts and a longer credit history is more favorable to lenders.Credit Mix. Lenders like to see a diverse assortment of accounts. A healthy mix might include a mortgage, auto loan, student loan, and credit cards. This indicates to lenders that you can manage your money across multiple accounts. Your credit mix accounts for 10% of your credit score.New Credit. The number of new accounts you have opened plus the amount of hard inquiries you have had on your credit account for 10% of your credit score. Hard inquiries occur when creditors request a formal credit check on you. People often ask, “how long do hard inquiries stay on your credit?”. They typically affect your credit score for one year.How can I improve my credit score to get the best interest rates for my SUV loan?Working to improve these areas of your credit report can save you a lot of money in interest. Here are our top tips for improving your credit score and securing the best car loan aprs possible.Get Your Credit Report and Review for Errors. You can get your credit report for free up to three times per year. Experts recommend checking your report throughout the year to insure there are no discrepancies. You should cross check your credit limits, outstanding balances, outstanding accounts, the dates you opened your accounts, your payment history for each account, and check if there are any bankruptcies or tax liens listed. If you notice anything that is incorrect, be sure to contact the credit bureau as soon as possible. It may take them up to 30 days to respond to you, but staying on top of this may greatly impact your credit score.Request Higher Credit LimitsAs we went over before, your credit utilization ratio plays a large part in your credit score. Even if you do not pay down your debts significantly, increasing your credit limit will tilt the ratio in your favor. Keep your credit balances below 30%Again, think of your credit utilization ratio. The lower the balances are, the lower (and better) your ratio will be.Make on-time payments Keeping current with your payments is incredibly important when trying to improve your credit. Remember, payment history makes up 35% of your credit score. A quick and easy way to do this is to set up autopay on all of your accounts that offer it. This way, you don’t miss a payment due to a busy schedule or something getting lost in the mail.Continue using consumer credit When people think of improving their credit score, they often think of immediately stopping all credit. And while some people may need to do this to curb their spending, it’s best if you can continue using your consumer credit modestly. Use your credit cards but try to pay them off in full every month.Become an authorized user on another accountIf you have a friend or family member who has outstanding credit, becoming a secured user on their account is a quick and easy way to boost your credit. And the best part? You don’t even need to use their account. Simply having your name on the account will increase your credit score. One way to do this is to refinance your vehicle with a co-signer – you can start raising your credit and lower your monthly payment in one go!Try Experian BoostExperian has just launched a service called Experian Boost, which can increase your credit score instantly by including account payment histories that are typically excluded from credit score calculations.Utility and phone bills are usually not included in your credit score, but Experian looks at your bank account and identifies qualifying accounts that you make timely payments on, giving you credit for those on-time payments. And if Experian finds that you don’t have a good history with these accounts, it won’t count them against you. This is a super quick, easy, and free way to increase your credit score.Get a debit card that builds creditThere are a few debit cards out there that link to your bank account and build your credit. Debit cards such as the Extra Debit card base your credit limit on your bank account balance. Every time you use your card to purchase something, you help build your credit. The Extra Debit card even has perks like a credit card does, like 1% back on all of your purchases. The card pays itself off every day, causing it’s credit utilization to reset every 24 hours. So you essentially have a card that pays itself off with no interest and can keep you below the suggested 30% Credit Utilization Ratio.Try to use these tips to increase your credit score. You could save loads of money just by making simple changes to your spending. Bumping your score from “fair” to “good” or from “good” to “very good” can drastically change what interest rates you are offered. And that’s what you should know about good SUV rates and how you can get the best interest rates possible.It’s important to shop around for the best car loan aprs on SUV loans. A lot depends on your credit, but some lenders will work with you more than others to secure a lower rate.If you already have a loan on an SUV and are overpaying, Auto Approve can help! We specialize in refinancing and have great relationships with lenders across the country, all with the goal of saving you money. So if you are overpaying on your SUV loan, get started with Auto Approve today to get a free quote!GET A QUOTE IN 60 SECONDS
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How Soon After Purchase Can You Refinance Your Car?

02/11/2022 23:00
There are a few reasons you might be thinking about refinancing a car loan, even if your purchase is recent. Maybe you got talked into a not-so-great deal from the dealership. Maybe your credit score just got boosted and you’re pretty sure you can get a lower interest rate. Or maybe your monthly payments are already taking a toll on you and you need to restructure your payments.Whatever your reason is, if you are wondering how soon after your purchase you can refinance car loans, we're here to help. See, refinancing doesn’t have an exact time frame, but there are definitely times when it will make more sense than others. So let’s talk about when you can, and when you should, refinance your car.When It Makes Sense For You To Refinance Your Car Loan EarlyTechnically speaking, you can refinance your car loan at any point after you purchase your car. You will most likely need to wait at least 90 days for all of the paperwork to be finalized on your sale, but once everything is filed and completed, you can refinance at any point.Experts recommend waiting at least six months for your credit score to bounce back from your initial application. When you apply for financing, your credit score will take a slight dip from the hard inquiries of your credit check. This can take 6-12 months to clear from your credit report.Refinancing your car is most beneficial early on in your loan. This is because car loans are front-loaded, which means that in the beginning you pay mostly interest, and towards the end you pay mostly on principal. Refinancing saves you money in interest payments, so the earlier you refinance, the better. So when does it make sense to do an early refinance? Car loans should probably be refinanced early if any of the following apply to you.Your Credit Score and Creditworthiness Have ImprovedIf your credit score or creditworthiness have improved since your initial financing, it’s probably worth looking into refinancing. Lenders reserve their top interest rates for people with the best credit. There are four major components that lenders look at when deciding what terms they will offer. These components are known as the 4 c’s of credit: Capacity- your ability to repay the loanCollateral- what you have that can repay the loanCapital- how much you are worthCredit- your credit score and payment historyUltimately, your credit score is affected by a combination of payment history, amounts owed, credit history length, credit mix, and new credit. It is very possible that one of these components has changed since your initial financing. Your credit score fluctuates based on many components, so check your credit report to see if your score has improved.You Got a Bad DealIf you got talked into dealer financing, you more than likely got talked into some bad terms. Dealers act as indirect lenders, working in between you and an actual lender. And by doing so, they jack up the pricing that the lenders offer so that they can make money as the inbetween.  The lender is thus handling the actual financing, while the dealership is tacking on financing fees. On top of that, you may have had a smooth talking salesperson who assured you that you were making a good deal, even though the rates didn’t sound particularly good for you. Even though your gut was telling you one thing, they were able to wear you down and talk you into less than ideal terms. Customers regularly report saving a lot when they refinance away from dealerships. Many report savings of around $80-$100 per month. Interest Rates Have Gone DoneIf interest rates have gone down in general since you financed, it’s a good time to look into refinancing your car. The market rates dictate largely what interest rates can be offered, so this matters a great deal in the timing of your refinance. Market rates are still low but may be rising as the year progresses, so we recommend getting started today.You Are Having Trouble Making PaymentsIf your monthly payments are already becoming hard to manage, refinancing your car is a great way to change your monthly payments. First off, if your credit score has improved or market rates have decreased, there’s a good chance you will qualify for a lower interest rate. This will automatically make your monthly payments lower.But even if you aren’t eligible for a lower interest rate, you can still change your repayment period to stretch the payments out over a longer period of time. Changing your repayment period from 36 to 48 months can greatly affect your monthly payments and can make your budget way more manageable every month.Deciding To Car Refinance: What Are The Best Reasons To Do It Early?What exactly are the best reasons for car refinance? Here are our top three reasons you should consider refinancing your car:You can get a lower interest rateBy refinancing, you may be eligible for a lower interest rate. This means not only will you save money in the long run by paying less in interest, but you will pay less every month in payments. If you have been making consistent payments and paying down your other debts, it’s likely your score has increased a few points. It’s always good to check your credit report consistently (you can check for free up to three times per year) to ensure that there are no errors. If you notice any problems, report them immediately to the credit bureau. If your score has increased even ten or twenty points, that can translate to saving hundreds of dollars per year.You can change your monthly paymentsRefinancing allows you to change your monthly payments. Even if you don’t qualify for a lower interest rate, you can change your repayment period to a longer period if money is tight and you could use some wiggle room in your monthly budget. You can also shorten your repayment period so that you pay more per month, but pay off your loan quicker (this will save you a lot in extra interest payments). In fact, refinancing is the only way that you can change your repayment schedule. So whatever the reason is, if you want to change your monthly payments, refinancing your car loan is the best option for you.You can add or remove a cosignerAdding a cosigner can be very beneficial to a borrower. If their credit score and credit history is better than yours, it can qualify you for a lower interest rate (and save you lots of money). Or maybe you want to help out someone who could use a credit bump. Parents will often add their kids as a cosigner to help them build up their credit. Adding them to your loan can help them out a great deal. You cannot add a cosigner onto an existing loan – you must refinance and add their name to the new loan.On the flipside, you might need to remove a cosigner. Either you don’t need their credit score to help you anymore, or you have parted ways and want to end your financial relationship. Whatever the reason is, you cannot simply have their name removed from the loan agreement – you will need to refinance your car loan to do so.Is There A Downside if I Refinance My Car Early?If you are thinking “I want to refinance my car, but aren’t there some downsides?”, we have some good news for you. There really aren’t any out and out downsides when it comes to refinancing. But there are two things you may need to consider that may influence whether or not you can refinance your car early. Are there prepayment penalties on my current loan?If your current loan has prepayment penalties, you need to factor that into your consideration. There’s a very good chance that even with prepayment penalties your savings will still outweigh any penalties you may have to pay. But it’s important to go over your numbers and make sure that refinancing your car loan will not end up costing you more money in the long run.Is your car in good condition?If your car is not in good condition, it might not be eligible for refinancing. A car with a lot of miles, or with more than average wear and tear, may not be eligible for refinancing. If your car loan is underwater, meaning you owe more on it than it is worth, your car also may not be eligible for refinancing. You don’t need to wait to refinance your carIn fact, refinancing your car today can save you a lot of money in the long run. If refinancing sounds like it might be a good option for you, get started with Auto Approve today! We work with the top lenders to get you the best refinance rates possible.So what are you waiting for?GET A QUOTE IN 60 SECONDS
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How to Get Out of an Underwater Loan

02/10/2022 23:00
Ok, let’s get one thing straight – if you have an underwater car loan, it doesn't actually mean that your car is under water. But, in many ways, it can feel just as helpless. And, while being in an underwater loan is less than desirable, it is probably more common than you think. But fear not! Today we are diving (pun intended) into the world of underwater loans. We’ll look at how you can get out of a negative equity situation – or even avoid the situation in the first place!Here are our top tips on avoiding underwater loans and how to get out of an underwater loan if you have one.Everything you need to know about underwater loansWhat does being underwater on a loan mean? How does a loan become underwater?Whenever you take out a loan, whether it’s on a house or on a car, you run the risk of your loan becoming underwater. Being “underwater” simply means that you owe more than your asset is worth. While we all like to think that we are expert researchers who make thorough decisions, that is sometimes not the case. Buying a car is exciting, and it is way too easy to get swept up in the excitement of car shopping and end up in a bad deal. The bottom line is there are many reasons a loan can become underwater.You put zero money downThis is one of the quickest ways to end up in an underwater loan. Cars lose about 10% of their value the minute you drive them off of the lot. By the end of the first year, your car will be worth about 20% less than when you bought it. So let’s do the math on that.You took out a loan for $25,000 for the cost of the car with zero money down. This means that second you drive the car off the lot, your car is worth $22,500. But your loan is still for the entire $25,000. Just like that, your loan is underwater.You paid too much in the first placeIf you didn’t do your research, you may have paid too much for the car from the get go. If your car was actually valued at $28,000 but you took out a loan for $30,000, you were underwater in your loan from the beginning.You took out a long term loanThe longer your loan repayment is, the more likely you are to end up underwater. If you are using an 84 or 96 month repayment, your monthly payments likely cannot keep up with the depreciation. Your car was out of your budgetIf you took out a loan with the lowest monthly car loan payments possible because you just HAD to have that particular car, it’s easy to end up underwater. Whether your payments are too low to keep up with depreciation or you miss payments here and there when you can’t make ends meet, the result will be ending up in an underwater loan. This can also happen by saying yes to all of those add ons from the dealership. The upgraded sound system, the fancy integrated computer system, the all-weather mats; these all add up and add on to your monthly payments.You had a rollover loanIf you owed money on your last car, the dealer may have rolled that remaining amount into your new loan. In this case, you are essentially paying for two loans at once. This can easily make your loan amount much higher than the value of your new car.You had a high interest loanIf your credit score and credit history were not great, you may have only been eligible for a loan with a higher interest rate. The higher rate makes it much more difficult for your payments to keep up with depreciation.What steps should you take to avoid getting into an underwater loan?As the saying goes, an ounce of prevention is worth a pound of cure. So what steps should you take to avoid getting into an underwater loan in the first place?Purchase GAP insuranceGuaranteed Asset Protection (GAP) insurance is one of the best ways to prevent a loan from becoming underwater. GAP insurance is designed to cover the difference between what your car is worth and what you owe. GAP will protect you from depreciation (as well as cover you when collision and comprehensive coverage do not). Put money down up frontExperts recommend always putting a down payment on your car. Putting 20% down will give you a good head start on the depreciation that will immediately start accumulating.Do your research – thoroughlyMake sure you know what the car you want is worth before you even step foot in the dealership. Use websites like Kelley Blue Book and Edmunds to get an accurate idea of what you should be paying for your new ride. Think about a realistic repayment periodThe longer your repayment period is, the more money you will end up paying in the long run. After all, you are paying interest on that entire period. On top of that, the older your car is, the faster depreciation will creep up on you. Keeping a shorter repayment period will ensure that you save money in interest AND stay ahead of depreciation.Pick a car within your meansCar shopping can be so exciting and it’s easy to ignore the budget that you know deep down you should follow. But you need to make sure that the car you pick has payments that are manageable. Sit down with your budget and determine what you can comfortably afford, keeping in mind that unforeseen emergencies pop up and you never want to end up stretched too thin financially.Keep this in mind when you are picking out your addons and upgrades as well – some of those additional items can easily add thousands on to your total loan.Make sure you have a good credit score before you financeYour credit score is the main contributor to the interest rate you will be offered. The higher your credit score is, the lower your interest rate will be. Get a copy of your credit report beforehand and look for any areas of concern. Was anything misreported? If there is an issue, report it immediately to the credit bureau. How do you get out of an underwater car loan?But what if it’s too late and your car loan is already underwater? Don’t fret. As long as you are not in a rush to get rid of your car, there are a few steps you can take to chip away at the difference between what the car is worth and what you owe.Continue making your paymentsKeep making your scheduled regular payments. Once you own your car and it is your asset, you can decide what you would like to do, either sell it, keep it, or trade it in. But at that point you will have equity in the vehicle.Make additional paymentsIf you are able to make extra payments on your loan, it will help bridge the gap between what you owe and what the car is worth. You can get ahead of the depreciation by being consistent with extra payments. You can even look into paying the loan off entirely if you have the capital to do so. But be sure to check your loan agreement to see if there is an extra fee if you pay off your loan early.Refinance your loanThis may not be possible depending on your situation, but a car loan refinance might be worth a shot. Traditional banks typically do not refinance underwater loans, but a local bank or credit union might consider it. If you are able to refinance your car loan, you might be able to pay off the car faster.Sell your carIf you are desperate to get rid of your car, you can always sell it privately. Selling your car privately will get you more money than if you were to go through a dealer. Do some research on Kelley Blue Book to find out what your car is worth, and try to honestly assess what condition it is in. Give your car a good detailing, fix any maintenance issues, and advertise locally as well as online. You might be able to sell your car and pay off most of the loan from that sale. This has other drawbacks of course, the main issue being that you will no longer have a car. But this will depend greatly on your personal situation and how bad you want to be free of your car.And that’s everything you need to know about underwater loans.The best way to get out of an underwater loan is to never get into one. Be sure to do your research and purchase GAP insurance when you take out your initial loan.At Auto Approve, we know how important GAP insurance is, which is why we make sure your new loan comes with it when you refinance. If your loan isn’t underwater but you are having trouble keeping up with payments, it might be time to refinance with Auto Approve. We work with lenders to find you the lowest interest rates around and can change your repayment plan to make your payments more manageable.So if you want to refinance a car loan, get your free quote today!GET A QUOTE IN 60 SECONDS
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What Happens If You Lease a Car But Want To Buy It?

02/08/2022 23:00
A few years ago, you decided to lease a car. You weren’t quite ready to commit to buying a car, and the more affordable leasing payments made much more sense. But now it’s three years later and your lease is up. And you can’t bear to part with your car for one reason or another. What do you do now?Today we’re talking all about car lease purchase – the whys, the whens, and the hows.Here's What Happens When You Lease A CarFirst up, how do car leases work?Think of your car lease as a long term rental. You do not own the car, but instead pay to use the car. The company that owns the car will draw up a lease agreement that outlines all of the conditions of your lease. Car leases will typically outline the following:The initial payment. Think of this as your first and last month’s rent. This will include your first month’s payment plus any drive-off fees that the leasing company charges. They will also deduct any rebates or trade-in credits that may be offered.The lease length. How long will you use the car for? This typically ranges between three and five years, but it is possible to get shorter or longer leases.The capitalized cost. The capitalized cost (also called the cap cost) is the selling price of the vehicle. Your monthly payments will be based on this amount.The lease residual value. The residual value is the amount that the car will be worth after depreciation. When you lease, you are essentially paying for the depreciation of the car during your use. The money factor. This is essentially the interest on the lease. Instead of being expressed as a percentage, it is expressed as a very small decimal. Multiply the number by 2400 to get an approximation of what the APR on the lease is.The monthly payments. The monthly payments will depend on the capitalized cost, the residual value, the money factor, and the length of the lease.Excessive use fees. All leases have limits to the amount of miles you can put on the car. Annual mileage limits are typically 10,000 miles, 12,000 miles, or 15,000. If you go over that mileage limit, you may face some hefty fees.Early termination fees. If you need to get out of your lease early, there will be fees to do so. Make sure you understand what you will be charged should this happen.The car lease buyout price. The cost to buy the car at the end of the lease should be outlined in your lease agreement.In addition to these nitty gritty details, there will be limitations and restrictions outlined in your lease agreement. These will vary greatly from lease to lease, but they will most likely include the following:Customization to the car. Since you don’t own the car, you cannot customize it however you would like. This means no custom paint job, no window tinting, no new stereo system. You must purchase the car to make it your own.Maintenance. You are responsible for the upkeep of the car. There will be a section of the lease that reviews exactly what you are responsible for maintaining. Oftentimes leases will cover routine maintenance, such as oil changes, and fix normal wear and tear issues. But this will vary from lease to lease. Excessive wear. Your car lease will outline what is considered normal wear and tear and what is considered excessive. If they deem there has been excessive wear and tear on your car, you may be responsible for extra fees.If you drove your car a lot during your lease and racked up excessive mileage fees and excessive wear and tear fees, it might make more sense to buy your car. Lease purchase can be a good move if you are facing thousands of dollars in fees.Can You End A Lease Early?If you’re wondering how to get out of a car lease early, there are a few different ways to do so.Early Lease TerminationIf you are unhappy in your lease and need to get out of it ASAP, you can simply terminate the lease. You will be responsible for whatever payments and fees are outlined in your lease agreement. The Consumer Leasing Act requires for all leasing companies to transparently list what fees and payments you are responsible for by terminating the lease early. The early termination fee will take into account how much time you have left on your lease. It may also include vehicle disposal fees, transfer fees, and taxes. And on top of this you will still be responsible for any past due payments, late fees, and parking tickets that may be outstanding. If you are contemplating early lease termination, you should call your leasing company to get an exact cost of termination. Because of how lease payments are structured, the earlier you terminate your lease, the more expensive it will be for you.Lease TransferAnother option to get out of a car lease early is to transfer the lease. This may not be permitted in your lease agreement, so be sure to check the fine print. If it is allowed, you will have to make sure that the new lessee meets the credit requirements of your lender. There are many companies that will match people looking to transfer their leases to people looking to take over the leases. Websites such as swapalease.com and leasetrader.com are great places to start.Lease BuyoutIn many cases, a car lease buyout is the best way to get out of a lease early. The cost to purchase your car early should be outlined in your lease agreement. There may be additional fees to end the lease, but it still might be worth it for you depending on why you are looking to end your lease. If you buy your car early and sell it privately, you might make out better financially. Should I Get Out of My Lease Early?There are pros and cons to ending a car lease early. If you have a change in life circumstances that make having a car difficult, you should do the math and see if ending your lease makes sense. But if it’s just a case of not liking your car as much as you thought you would, you might be best served to keep the lease until the end of your term.If you want to lease a car, do a lot of research ahead of time to make sure you will still want it in a few years. Choosing The Right Car For Lease If You Want To Buy LaterLeasing a car with the option to buy is a great way to get a new car with lower upfront monthly payments. The monthly payments will be significantly lower than if you purchased the car new from the beginning. But how do you pick the right car for lease?Know your budget. Be sure that you can handle the monthly payments on your lease so you do not get behind on payments.See what’s available. Look around to see what cars are available for lease. This may limit your options.Be sure to test drive. Leasing a car is a big commitment, so make sure you are 100% confident in your decision. Always test drive to make sure you like the feel of the car.Do even more research. Do other drivers like this car? What are common complaints? What about maintenance issues? What about maintenance issues down the road? Will the car still be worth something when the lease is over? Ask all of these questions and talk to anyone who might have the same car. When your lease ends, weigh your options carefully. Think about the condition of the car – is it still in good shape or does it have some battle scars? If the car isn’t in great shape you may not want it as much, but you may be liable for some hefty fees if you choose to give the car back.Determine what the market value of the car is and compare it to the buyout amount listed in your agreement. Is it still a good deal or did the car depreciate more than you anticipated, making it a bad investment?If you still love your car and decide it makes more sense to keep it than to give it back, you will need to secure financing as the next step. That’s where Auto Approve comes in. With competitive rates and a simplified buyout process, keeping your set of wheels has never been easier.And that's what you should know if you leased a car but want to buy now.If you’re interested in a car lease purchase, Auto Approve has you covered. Our agents are eager to keep you in the car you love, all while saving you money. Our passion is saving you money, so contact us today!GET A QUOTE IN 60 SECONDS
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How New Technology is Reshaping Loans

02/04/2022 23:00
Technology has changed so much of our daily lives. Even before the pandemic dictated that we do everything online – from meetings to school to buying groceries – our lives were quickly migrating away from face-to-face interactions.And now, in a world where business has shifted almost entirely online, financial institutions are trying to figure out how to adapt to consumer needs. Advancements in technology, from cloud integration to artificial intelligence programs, have changed how loans – including auto refinancing – are created.All of these changes have improved loan decision efficiency, consumer experience, and created consumer savings through competition. Let’s look at exactly how technology has reshaped loans.Here’s how advancements in technology have changed loans and the auto refinancing industry.Cloud Technology Makes Loan Origination Cheaper and More EfficientCloud technology has been a game changer for so many industries. The ability to store information remotely has reduced the need for on-premise infrastructure greatly. The IT equipment and operating expenses (including personnel and electricity) were very costly necessities in a world where data storage systems and dedicated server rooms were mandatory.But then cloud technology came along and everything changed. Suddenly companies could migrate data from their onsite servers to remote locations and free up a ton of resources by doing so. A reduction in expenses was just one of the benefits of cloud technology.Loan origination software (LOS) became widely available to lenders via the cloud, allowing financial institutions of all types – including auto refinancers – to have access to the latest artificial intelligence. This accessibility has many far reaching implications.Quick Entry Into the MarketCloud technology means that new lenders can enter the market faster. They don’t need to set up new software and data management systems – they can instead use existing cloud technology. This allows greater access for startups and creates more competition. And more competition often means more savings for you.For example, if you were going to refinance your car in the past, you would have had only a few options of lenders. But now there are new lenders popping up all the time, keeping everyone on their toes. Rates and terms need to constantly be adjusted to stay competitive. Software Updates Improve ExperiencesBugs and software issues are inevitable with any form of technology. When data was stored and managed on premise, an issue could take weeks if not months to resolve depending on the size and IT management of the company. But cloud technology ensures that when there is an issue it is widely reported and quickly resolved. Regular software updates create an ease of use for lenders, making the loan industry faster and, again, creating more competition.Scalability Helps Lenders Increase Their ReachCloud technology allows lenders to scale their companies up faster than ever. As conducting business online allows them to reach more people, they can easily expand their companies using the cloud. No need to bring in additional expensive IT – everything is remote and ready to accommodate lenders’ growing needs. An added advantage is the cloud’s constantly developing security. Advancements in technology routinely keep data more and more secure.Automation Technology Makes Loan and Auto Refinancing Decisions Faster and More AccurateAdvancements in automation technology have also helped lenders to make faster and more accurate decisions regarding loans and auto refinancing.Paper Applications are Replaced with Digital FormsTraditionally, loan applications were a lengthy and tedious process for both the lender and the consumer. For the consumer, they would need to fill out paperwork by hand, often repeating the same information over and over again (even to just obtain a quote). They would then need to collect all necessary documents (bank statements, proof of address, pay stubs, etc) and physically deliver them to their bank. This was time consuming and often led to incomplete applications. Lenders estimate that 30% of applications that they used to receive were missing information. All of this took a lot of time for the lender as well. Some lenders estimate that a refinance application used to take about two hours to process. They would have to go over all of the application information, verify the documents, chase down incomplete information, and so on and so on. But now, this is all digital. Applications now have required fields and cannot be accepted as incomplete. And thanks to your personal computer, you can usually autofill all of this information instead of painstakingly typing and retyping.So an application for auto refinancing that would have taken twenty minutes in the past can now be done in a matter of seconds. Applicants can easily get quotes and apply for refinancing faster than ever before. All of this increased competition leads to more – you guessed it – savings.Increased Consumer Data Makes Artificial Intelligence Decisions More AccurateDecisions on these applications can now be made more accurately as well. With the growth of consumer data, artificial intelligence can look at trended data to make more informed lending decisions. And since so much data is now stored and shared online, lenders have more information to look at when making their decisions. Payment histories and accounts that were never factored into decisions before can now be easily found and considered in conjunction with an application. Lenders can now compare a much more well-rounded applicant to a much more accurate predictive data segment to decide on loan and auto refinancing approval. Data thresholds can quickly eliminate unqualified applicants. Establishing a baseline credit score that is needed can ensure that lenders are only looking at qualified applicants. But they can also filter certain applicants that are questionable into an application pool that requires further consideration. If you were applying to refinance your car and the lender required a 600 credit score to refinance, but your credit score was only 500, you would immediately be disqualified. But if your credit score was a 580, your application might be filtered to a lending expert who could better assess your situation. This makes the best of both worlds – drastically under-qualified applicants do not slow down other application reviews, while people who may be deemed as credit-worthy can still be considered.All of this is calculated automatically, making both quotes and approvals so much faster.Faster Decisions Means More SavingsWith all of this work now automated, there is much more room for savings. By eliminating so much extra work, money and resources are now free to create more competitive loan and refinancing offers.Automation Creates More Time for Customer Interaction with Loan and Auto Refinancing Applicants Application reviews that used to take days can now be done in minutes thanks to improvements in automation. This frees up employees to take more time fostering consumer relationships. These relationships can greatly impact consumer decisions and referrals (just take a look on TrustPilot to see how important these interactions are to consumers).Consumers want a positive experience all around. While they definitely want to save money when they take out an initial loan or decide to refinance an existing loan (after all, that’s the whole point of refinancing) money is not all that matters to them. In fact consumers rank the following as being integrally important to their lending decisions:Transparent processes, terms, and conditionsEmployee interaction and helpfulnessSupport with application issuesFlexible repayment termsAll of these things are important to consumers and can be improved as a result of automation. With more free time, employees can guide applicants on the terms and conditions and make sure there is a full understanding of the loan structure. They can offer personalized advice when consumers are unsure of repayment options or other conditions. Having close contact with customers can help improve the overall experience. If there are problems with any online procedures, from filling out the application to document uploading to esignatures, employees have more time to help them navigate. Employees can also take a more active role in suggesting improvements to the application process.We know when it comes to refinancing your car, guidance with a personal touch can make all of the difference. Those are some of the ways that technology is reshaping loans and auto refinancing.Technology has changed our lives in so many ways, and many would argue that it’s for the best. The way the auto refinancing and loan origination is conducted is a prime example of how technology can create healthy competition, save consumers money, and create a better consumer experience overall. At Auto Approve, we know that a great overall customer experience is of the highest importance. Because if you’re not happy, we’re not happy. But don’t just take our word for it: listen to our customers and let them tell you about their experiences. With an A+ rating from the Better Business Bureau, you know we put our customers front and center.If you are ready to start saving money every month, let’s talk! Our agents are ready to help you with every step of the auto refinancing process. GET A QUOTE IN 60 SECONDS
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*APR and Fees Disclosure: Auto Approve works to find you the best Annual Percentage Rate (APR), which is based on factors like your credit history, vehicle and desired payment terms. Fees to complete your loan refinance vary by state and lender; they generally include admin fees, doc fees, DMV and title. Advertised 6.24% APR based on: 2019 model year or newer vehicle, 730 minimum FICO credit score, and loan term up to 72 months. All loans subject to credit and lender approval.
Auto Approve has an A+ rating with the BBB and is located at 2860 Vicksburg Lane North Plymouth, MN 55447. Auto Approve works to find its customers the best terms and APR, which are based on factors like credit history, vehicle, and desired payment terms. Loan amounts, costs, and fees vary by state and lender; they generally include admin fees, doc fees, DMV, and title fees, depending on the lender and period of repayment. There is no fee to obtain a quote and all refinancing-related costs are included in the amount financed so there are no out-of-pocket costs! For more information, please go to AutoApprove.com.