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If you are interested in refinancing your car loan, you may be wondering if you qualify. Lenders vary in their specific requirements for car loan refinancing, but in general they will look at your credit history, your car, and your existing loan. Here’s how to know if you qualify for car loan refinancing.What determines if you can refinance your car?To qualify for car loan refinancing, lenders will consider a number of factors surrounding your financial health, your car, and your loan. Your Credit ScorePerhaps the most important factor that lenders consider is your credit score. Lenders in the United States practice what’s called “risk based pricing”, which means that the riskier you are considered as a candidate, the more you will pay in interest. Your credit score is one of the top indications of how risky you are as a borrower. A good credit score tells lenders that you make full and consistent payments and can manage your money across multiple accounts.Credit scores are broken down into five categories:800 to 850: Excellent740 to 799: Very good670 to 739: Good580 to 669: Fair300 to 579: PoorIf you have excellent credit, you will most likely be approved for car loan refinancing and will be offered one of the best interest rates possible. If you have a good credit, you will also most likely be approved and offered a pretty good interest rate. As your credit score falls further down the ladder, the harder it will be to get approved and the higher the interest you are offered will be. Qualifying for car loan refinance is highly dependent on your credit score.Your VehicleAnother major factor that will determine if you qualify for refinancing is the age and condition of your car. Lenders want to be sure that the asset they are financing has value, so they typically require that the vehicle is less than 10 years old. They will also require that there are not too many miles on your car. Less than 100,000 miles is best, but some lenders will allow you to refinance a car with 125,000-150,000 miles. Your Current LoanLenders will also take a close look at your existing loan. If there is not a lot of time left on your loan they may feel that it is not worth it for them to refinance it, as they will not make much money off of the interest as the loan nears the end.They will also look to see that you have been making consistent payments on your existing loan. Seeing on time and full payments will prove that you are a good candidate and should qualify for a loan.While the new lender doesn’t care about the prepayment penalties, you certainly should. Certain car loans will have prepayment penalties if you decide to pay off your loan early. This is to offset any money they will lose in interest. While this doesn’t necessarily affect if you qualify for refinance, you should pay careful attention to these fees in your contract to determine whether or not refinancing your car loan is worth it. If your prepayment penalties outweigh your savings, it’s best to not pursue car loan refinance.What does your credit need to be to refinance a car?In order to qualify for car loan refinance, a good credit score is important. It is recommended to have a credit score of above 700 in order to qualify for refinance. If your score is below 700, it is not impossible to refinance your loan. But you may be paying a much higher interest rate and ultimately it might not be worth it to you.It is a good idea to make sure your credit score is in great shape before you apply for refinancing. Here are some of the best ways you can improve your score:Request higher credit limits on your accounts. This will decrease your credit utilization ratio and boost your score.Make consistent, on time, and full payments (sign up for autopay if you can). Your payment history is the biggest contributor to your credit score so this will help a good deal.Review your credit report for errors. Correcting any mistakes on your report can help give your score a boost (and save you from further problems down the road).Pay down your debts. Reducing your debts can help to improve your credit utilization ratio.Do not open other new accounts. Opening new accounts will cause a dip in your score.How can I refinance my car loan?Refinancing your car loan is easy, especially when you use Auto Approve. Auto Approve specializes in car loan refinance, so our agents are qualified to help you determine not only if you qualify for refinance, but can help guide you through the process. Here’s how you can refinance your car with Auto Approve.Step 1. Get a free quoteTo start the refinancing process, you can start by getting a free quote. You don’t even need to provide your social security number. Simply fill out your name and estimated credit score and we can help determine your initial eligibility. Within minutes you will have several quotes. Step 2. Work with an agentBy filling out some additional information, our agents can help you determine what offers will work best for you. Step 3. ApplyOur agents will assist you in filling out the application paperwork and ensuring that you have all of the necessary paperwork. Once you receive your offer, your rate will be locked for 30 days while you make your decision.Step 4. SignIf you decide to move forward, you simply sign electronically and Auto Approve will take care of the rest! Your agent will ensure that your old loan is paid in full and they even handle the DMV paperwork so you don’t have to.Step 5. Start savingOnce you sign the paperwork, you will have 45 days until your first payment is due (and you can immediately see the difference in your monthly payments!) Refinancing with Auto Approve is just that easy!That’s how you can determine if you qualify for car loan refinancing (and how you can refinance easily with Auto Approve).If you are wondering if you qualify for car loan refinance, take a look at your credit score, your vehicle, and your existing loan. Auto Approve can help you determine if you qualify and assist you with the application process if you do qualify. So get in touch with Auto Approve today to start saving money!GET A QUOTE IN 60 SECONDS

It’s everyone’s favorite time of year: tax season! And while we aren’t exactly jumping for joy that it’s time to buckle down and go through our finances for the past year, we do recognize how important it is. So let’s chat about the 2023 tax season, from dates and deadlines to changes in side hustle payments.Here’s everything you need to know about filing your 2022 taxes in tax season 2023.What are some changes in this 2023 tax season?2023 Tax Season DatesThe IRS started accepting returns for the 2023 tax season on January 23, 2023. Nearly 170 million returns are expected to be filed this year. The tax filing deadline is April 18, 2023. It is not on April 15, as it usually is, because April 15 is a Saturday. Instead they have extended it to the following Tuesday. 1099-K ReportingThere has been a lot of confusion surrounding the new requirement for third party payment platforms (such as Venmo and Paypal) to provide 1099-Ks for all people earning over $600 in payments for side hustles and gigs. Due to the confusing and controversial nature of this new law, this rule has been delayed. As a result you may not receive a 1099-K from these companies.The IRS still emphasizes that you need to report all taxable income on your federal tax return whether you receive a 1099 or not.EV Tax CreditIf you bought an electric vehicle in 2022, there are some changes to the EV tax credit. The Inflation Reduction Act allows for a tax credit up to $7500 on qualifying new electric vehicles and a lower credit on qualifying used electric vehicles. These new vehicles have a higher standard of “clean”.If you purchased your vehicle before the Act was signed into law on August 16, 2022 you can take advantage of the previous EV tax credit. You must provide a signed sales contract.If you purchased your vehicle after August 16, 2022, the old rules apply but your vehicle must have its final assembly in the United States.Itemized Charitable DeductionsFor the past few years taxpayers have been allowed to claim an “above the line” deduction of up to $600 for their charitable deductions. This is now reverting and you must itemize deductions once again. The adjusted gross income ceiling on cash contributions is also returning to 60%.Special PaymentsIf you received a type of special payment from the government, such as an inflation relief check or 2022 special rebate, the IRS has announced that it will not be treated as taxable income. There was confusion about this early on and the IRS originally told taxpayers in 21 states to hold off on filing until they reached their decision. But on February 10th they released this statement:“During a review, the IRS determined it will not challenge the taxability of payments related to general welfare and disaster relief. This means that people in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island.”If you are wondering about a specific rebate you received, it’s best to consult a tax professional.What can you expect from your 2022 tax return?The IRS is warning people that their refund may be less than it was in previous years. This is due to a number of changes between last year and this year.The standard deduction is higher. In 2022 the standard deduction for a single filer was $12,950 and $25,900 for a married couple filing jointly. In 2023 this has increased to $13,850 for a single filer and $27,700 for a married couple filing jointly. This means that it will be harder for people to claim charitable contributions.The Child Tax Credit is returning to $2,000 from $3,600 per child. This increase was intended as a relief during the pandemic and has now reverted to its normal amount.The Earned Income Tax Credit has lapsed. Last year taxpayers claiming the EITC who had no children received $1,500. This will reduce in 2022 to $500.How to File your 2023 TaxesStep 1. Determine if you need to file.If you had income tax withheld from your paychecks, made estimated tax payments, or qualify for certain tax credits, you most likely should file taxes. Ultimately your filing status will depend on your age, income, and whether or not someone else can claim you as a dependent.Step 2. Choose how you will file your taxes.You have three options when it comes to how to file your taxes. You can use IRS Form 1040 or Form 1040-SR to fill out your taxes manually and mail them in. This is not a recommended method.You can use tax software such as H&R Block or TurboTax to electronically fill out your taxes and submit them. This is a great option for most people who do not have a complicated financial situation.You can hire a tax professional to file your taxes on your behalf. This is a great option if you have your own side business or operate a lot of accounts.Step 3. Gather your documents.Perhaps the most time consuming part of filing your taxes is gathering all of the necessary documents. Here are some of the most common documentation you will need:Social Security Numbers. You will need the Social Security numbers for yourself, your spouse, and any dependents (if applicable).W-2 form. This form will come from your employer and tells how much you earned in the past year as well as how much you already paid in taxes. 1099 forms. These forms show that some entity or person who is not your employer paid you money. These may include returns on interest (Form 1099-INT) and returns on dividends (Form 1099-DIV).Retirement account contributions. Retirement contributions are typically recorded on Form 5498.Property taxes and mortgage interest. Your mortgage company should provide you with Form 1098 (if you paid over $600 in interest throughout the year).State and local taxes. Keep track of any taxes you have paid throughout the year.Charitable donations. Any money or goods that you donated to a tax-exempt organization, such as a charity, can be deducted from your adjusted gross income.Educational expenses. Tuition, fees, books, room and board, and other necessary expenses such as transportation may be deducted.Unreimbursed medical bills. The IRS will allow you to deduct preventative care, treatment, surgeries, dental care, vision care, visits to psychologists and psychiatrists, and prescription medications. You may also deduct appliances such as glasses, contacts, false teeth and hearing aids, and travel for medical care.Freelance expenses. If you are self employed you may deduct work related expenses.Last year’s federal and state tax returns.Step 4. File on TimeThe deadline for filing in 2023 is Tuesday, April 18. If you are unable to file on time for some reason, be sure to request an extension. You can usually get a six month extension which allows you to file until October. But keep in mind that if you owe money you will be responsible for additional interest and fees.Step 5. Settle UpMost of the time you will either owe money to the IRS or the IRS will owe you money. If you owe money to the IRS there are a number of ways you can make your payment.Electronic Funds Withdrawal (EFW)IRS Direct PayDebit CardCredit CardThe Electronic Federal Tax Payment System (EFTPS)Wire TransferCheck or Money OrderCashMobile (IRSToGo)If you are having trouble paying the total amount you owe, you may also set up an installment plan. You will have to pay interest and fees until the full amount is paid. There is a short term payment plan and a long term payment plan.If the IRS owes you money, you can collect your refund via direct deposit (which is the fastest way). You can also request a paper check be sent to you. Refunds are typically sent out within 21 days of filing, but additional review may be required. Filing electronically and having the refund sent to your direct deposit is the fastest way to get your 2022 tax refund. You can track your refund status online.That’s everything you need to know about filing your 2022 taxes during the 2023 tax season.Tax time can be confusing, but staying organized and prepared can help you file your taxes with ease. It’s also a great time to sit down and thoroughly review your budget to see how your income and expenses are lining up.If your financial review shows that you are overpaying on your monthly car payments, Auto Approve can help! Refinancing your car loan can save you a lot of money (and with very little effort!) To find out if you qualify for car loan refinancing, get a free quote today!GET A QUOTE IN 60 SECONDS

There are a lot of terms when it comes to getting a loan. But of all of the terms you may be unfamiliar with, loan-to-value ratio is an important term you should get to know.Here’s what you need to know about loan-to-value ratios (and how to know if you have a good ratio).What is loan-to-value?A loan-to-value ratio compares the amount that you want to borrow to the value of the asset you are purchasing. Lenders look at loan-to-value ratios for all secured loans (such as car loans and mortgages). These ratios tell lenders how much of a risk the loan is. Secured loans mean that there is collateral that ensures the loan. If you should default on payments, the lender has the right to physically take your collateral and sell it to recoup their losses. If your collateral is not worth as much as you owe, the lender will not be able to make back their money.Loan-to-value ratios are calculated by dividing the amount of the loan by the appraised value of the asset.LTV= Amount of Loan / Value of AssetFor example, let’s say you want to purchase a car that is $35,000. You are making a down payment of $7,000 and you will have to pay a 7% sales tax and $500 in fees. Your total loan amount will be as follows:Car Price - Down Payment + Sales Tax + Fees = Loan Amount$35,000 - $7,000 + $2,450 + $500 = $30,950To calculate the loan to value ratio you divide that by the value of the asset.LTV= Amount of Loan / Value of AssetLTV= $30,950 / $35,000LTV= 88%How does LTV affect interest rates?The lower your LTV is, the less of a risk your loan is. Lenders in the United States use what’s called “risk based pricing” when it comes to assessing interest rates. In other words, the riskier your loan is, the higher the interest rate will be. A loan can be designated as risky for any of the following reasons:You don’t have a good credit scoreYou don’t have a good repayment historyYou don’t have a good employment historyYour debt to income ratio is highYour loan term is too longYour down payment is not large enoughThe loan-to-value ratio on your vehicle is high If your loan is viewed as risky, chances are you will be offered high interest rates. How can a loan-to-value ratio be higher than 100?So how can your total loan amount be for more than the price of the asset you are buying? There are a few ways that this can happen.#1. You don’t pay anything upfront.Not making a down payment puts you at a severe disadvantage from the start. Not only do you need to take a loan out for the total cost of the car, but you need to pay for the taxes and fees. This can easily add a few thousand dollars to your price tag. Let’s look at the above example, assuming there was no down payment.Car Price + Sales Tax + Fees = Loan Amount$35,000 + $2,450 + $500 = $37,950LTV= Amount of Loan / Value of AssetLTV= $37,950 / $35,000LTV= 108%Lenders do expect this to some extent, which is why you can typically get approved for a loan with up to a 125% loan-to-value ratio. Some lenders will even go above 125%.#2. You have a car with a high rate of depreciation.All cars depreciate at different rates. Depreciation is based on a number of factors, including:Your car makeYour car modelYour car yearThe mileageThe paint colorThe wear and tear on your carAnd other factorsIf your car depreciates at a faster rate, it is possible that your depreciation will outpace your payments (especially if you did not put down a down payment, or didn’t put down a large enough down payment). Your loan-to-value ratio changes throughout the course of your loan, so it is possible that your LTV can increase to an uncomfortably high level.#3. You owe money on another car.If you already have a car loan where you owe money, you may have the chance to roll that negative equity into your new car loan. So if you owe $5,000 on a previous loan, you may roll that into your new loan. Your new car may be $30,000, but you will have a loan for $35,000.How do loan-to-value ratios affect refinance?If your loan-to-value ratio is too high, you may have a harder time with a car loan refinance. But generally if your LTV is lower than 100% it is considered a good loan-to-value ratio and you will be able to refinance your car loan.How to lower your loan-to-value ratioThere are a few tips to ensure that your loan-to-value ratio isn’t too high. Choosing the right car in the first place is especially important.Tip #1. Pick a car that is within your budget.It’s important for so many reasons to pick a car that is within your budget in the first place. This means that you will have the money to not only make a down payment, but you will not have trouble consistently making your monthly payments.In general, it is a good idea to ensure that you pay no more than 15% of your monthly take home pay on your car payment. Your transportation expenses should not total more than 20% of your total pay. This means gas, parking, insurance, tolls, maintenance, and your car payment should be less than 20%.Tip #2. Pick a car that doesn’t have a high depreciation rate.Certain cars depreciate at a faster rate than others, even if all else remains the same. Two cars that are the same age and have the same mileage and wear and tear will still have different depreciation rates. Depreciation is based on what something is worth as it ages, and certain cars are more desirable as used cars than others when they are used. Luxury cars tend to top the list with the highest depreciation rates. The top 10 cars with the highest depreciation rates in 2022 according to iSeeCars are:BMW 7 Series: Depreciation rate of 56.9%Maserati Ghibli: Depreciation rate of 56.3%Jaguar XF: Depreciation rate of 54%Infiniti QX80: Depreciation rate of 52.6%Cadillac Escalade ESV: Depreciation rate of 52.3%Mercedes-Benz S-Class: Depreciation rate of 51.9%Lincoln Navigator: Depreciation rate of 51.9%Audi A6: Depreciation rate of 51.5%Volvo S90: Depreciation rate of 51.4%Ford Expedition: Depreciation rate of 50.7%First time buyers tend to have higher expectations for technology and add ons, and these features are typically not valued as much by used car buyers. Choosing a car that has a low depreciation rate is a great way to combat a high LTV. Jeeps, Hondas, Toyotas, and Subarus tend to have lower depreciation rates. Even though some of these models may not be as flashy as other cars on the market, they are solid and reliable cars that people will continue to buy used.Tip #3. Skip the add ons.A car can very quickly go from being within your budget to being out of your budget relatively quickly. Upgrades and add ons can quickly add thousands to your car’s price tag, and that means thousands more that you will have to finance. Instead of saying yes to every upgrade presented, try to make a list of what is truly important to you. Do you go camping a lot? Then roof racks and all weather mats are probably a good investment. Do you really care about the sound quality and entertainment? Then the better sound system might be a good choice. But chances are there are more than a few upgrades you can pass on completely.Tip #4. Make a down payment.This is less of a tip and more of a rule. You should always make a down payment when purchasing a new car. If you do not make a down payment, you will immediately have negative equity. Depreciation begins the second you drive your new car off the lot, meaning your car will lose value immediately while your loan will be for the original total amount. Making a down payment combats depreciation and will help keep your loan from becoming underwater.Tip #5. Don’t pick a long repayment period.Long repayment periods mean that your monthly payments will be lower. And this in turn means that it will take longer to pay back your loan. During that time, your LTV ratio can easily increase and become less desirable. That’s everything you need to know about loan-to-value ratios.It’s important to understand how loan-to-value ratios work and why they are important. Getting a low LTV ratio in the first place depends largely on selecting the right car and loan in the first place. If you are interested in refinancing your car loan, try to pay down your loan so that your LTV ratio is 100% or less. This will help you to secure the best interest rate and the best terms. If you are interested in refinancing your car loan, contact Auto Approve today to get your free quote!GET A QUOTE IN 60 SECONDS

These words are very common in the word of finance, and they are sometimes mistakenly used interchangeably. But there is actually a very big difference between a cosigner and a co-borrower, so it’s important to distinguish between them.Let’s talk about the difference between cosigning and co-borrowing.What is a cosigner?A cosigner is someone who agrees to be legally responsible for a loan if the original borrower defaults on the payments. Cosigners essentially give the lenders a guarantee that someone else will be responsible for the payments should the loan agreement not work out as intended.Cosigners can be found on apartment rental agreements, personal loans, mortgages–really any type of loan or rental agreement. If a borrower is young and has yet to establish credit it is common for a parent or loved one to step in and cosign until the borrower has built up their credit. If a borrower is just getting out of a bad situation such as a bankruptcy a cosigner may be able to help them get back on their feet. Many car lenders have the following requirements for a first time car loan:You must have a monthly income of at least $1,600.You must make a down payment of at least 20%.You must have a credit score of at least 680.You must have established credit and not have a credit utilization ratio that is higher than 50%.Lenders may require proof of a stable work history in addition to this. If you are a first time car buyer, these may seem like difficult requirements. Lender’s will therefore allow you to get a loan if you provide a cosigner.There are a few requirements to become a cosigner on an auto loan:They must be willing to cosign and accept the responsibility of repayment if necessary.They must have good credit, generally above 700.They must prove they have a stable income that can pay for the loan if it defaults.They must prove their residence.They must prove their employment.Lenders will consider all of this information in conjunction with the original borrower’s application materials when determining whether or not to approve the loan. Becoming a cosigner is a huge responsibility. You should only cosign a loan for someone you love and trust. It is all too common for financial relationships to put a strain on personal relationships, so it’s very important to communicate with your loved one if you decide to cosign with them.What is a co-borrower?A co-borrower on the other hand is someone who is applying for the same loan with you. You are agreeing to equal share in responsibility of the loan and of the asset. Your co-borrower’s name will appear next to yours on the loan and on the title of the car. Your finances will be looked at with equal weight. A co-borrower is a good idea if you want to own your car with someone, such as your husband or wife. They will have equal ownership, which may be perfect for you. Is it good to have a cosigner?In general, cosigning a loan is a very big deal and it is a decision that should not be taken lightly. But if you are having trouble getting approved for a car loan, asking a loved one might be your only option. Having a cosigner will help you in the following ways:You will be offered a better interest rateYou will have some time to build creditYou will have someone to help guide you and give you adviceBut being a cosigner for someone else doesn’t really have a lot of benefits for the other person, and asking someone to cosign a loan is a big deal. They are on the hook financially for your loan.Insurers in some instances will hold the cosigner responsible for claims.It can be a strain on personal relationships.Before asking someone to take on this responsibility, ask yourself if you really need the loan (i.e. do you really need to buy a new car). If you are trying to build credit and are confident that you will not default, then you should take the following steps to prepare for cosigning. Prepare ahead of time before you ask them to cosign. Gather your financial information so that you can answer any questions they may have.Schedule a meeting to ask them and discuss in detail. Having a meaningful and honest conversation ahead of time is important. Make sure they are aware of what being a cosigner means.Get a plan in place for repayment. This will help assure them that you can pay back your loan.Don’t expect an answer right away. Give them time to think about what you are asking. If your cosigner agrees, it’s important that you keep them in the loop on whatever is happening with your loan. If you need help with a payment or have a problem, be transparent with them. How can I remove a cosigner?If you have a cosigner, you may be wondering if it’s possible to remove them. Generally there are three options to get untangled from a cosigner:Ask for a cosigner release.In certain situations a lender may allow you to simply release the cosigner from the loan. This is not typical, but it can happen in certain situations. Read your loan agreement carefully to determine if this is an option.Sell the car.You can also simply sell the car and get a fresh start. This is a good option if the arrangement doesn’t seem to be going well and you have not been able to improve your credit enough to refinance the loan in your own name.Refinance your loan.The best way to remove a cosigner is to refinance your loan. When you refinance you are starting over with a new loan, so your new lender will pay off your old lender. If you have worked to improve your credit, you may be able to find a car loan with a good interest rate and repayment plan. Working with a company that specializes in refinancing can help you navigate these waters.That’s everything you need to know about cosigning and co-borrowing.Both cosigning and co-borrowing are very serious financial relationships, although they differ on what they actually are. Both relationships should be taken seriously and a lot of thought should be put into the decision beforehand.Refinancing your loan is a great way to either add or remove a cosigner or co-borrower. If you are looking to make a change on your car loan, contact Auto Approve today.GET A QUOTE IN 60 SECONDS

If you are lucky, you know what it’s like to truly love a car. A car that you don’t want to give up, a car that’s really been there for you. But what do you do if that car happens to be a leased car? How are you supposed to give up a car like that?Well the good news is you don’t. In fact, most leases prepare for this and will allow you to buy your leased car at the end of the term. But what’s the best way to do this? Is there a smart way to buy your leased car?Let’s talk about the best way you can buy your leased car.What is the best thing to do at the end of a car lease?At the end of a car lease you have three options. You can return your lease for a new lease, you can return your lease and walk away, or you can purchase your leased car. Return your car for a new lease.This is a great option if you are ready for a new set of wheels and like the ease of leasing. As long as you have not gone over the mileage limits and do not have excessive wear and tear, you can get a new lease easily. Return your car and walk away.You are under no obligation to keep leasing if you decide it’s not right for you. Maybe you like owning your car so that it is truly yours. Maybe you don’t like abiding by all of the rules. Whatever the reason is, leasing is not for everyone. And that’s why it might be a good idea for you to return your car and walk away.Purchase your leased car.At the end of the lease you will be able to purchase your car (in most cases anyway). There are a few reasons why this might be your best option:You like your leased car and don’t want to part with it.You have gone over the allowed mileage and will owe a lot in fees.You have excessive wear and tear and will owe a lot in fees.Your car is worth more than the purchase price.If any of the above apply to you, it might be worth considering purchasing your leased car.Can I get a loan to buy my leased car?What if you love your leased car but don’t have the cash to buy it? Enter the car lease buyout loan. These loans can help you to purchase your car from the leasing company.To get a car lease buyout loan you will need to make sure your credit score is in good shape and that you are a desirable loan candidate. Contacting a company that specializes in car lease buyout loans can help ensure that you will get the best loan possible. To prepare yourself for your loan application, here are some of our top tips:Request a copy of your credit report to ensure everything is correct.Request higher credit limits to your accounts to boost your credit score.Resist opening any other new accounts during this time.Be sure you are paying all of your bills on time and in full (especially your car lease payment).Gather documents you will need for your applications, including proof of employment, proof of insurance, identifying documents, and your current lease agreementIt is typically more difficult to get approved for a lease than it is for financing. Chances are if you were approved for a lease you will have a good chance getting approved for financing. But it is always a good idea to try to get your score in its best shape possible before applying for a loan. The best interest rates and terms are reserved for those with excellent credit scores.How does it work if you want to buy your leased car?So, how do you buy your leased car? It’s actually really easy, just follow our steps below.Step 1: Determine the buyout price.Your car lease buyout price will be listed in your leasing agreement. The price will be the residual value (which is predetermined and listed in your leasing contract) plus any taxes and fees. If you are unsure about the exact price you can reach out to the leasing company to get a total. The residual value is based on the expected depreciation over the life of your lease.Step 2: Evaluate your car’s value.You will next need to determine what your car is worth. The best way to do this is to use a website such as Edmunds or Kelley Blue Book. These sites will look at your car’s make, model, year, mileage, and overall condition to determine the market value.If your car is worth more than the purchase price it is definitely worth considering a loan buyout. You can always sell your car privately and keep the profit if you aren’t crazy about your car.If on the other hand the purchase price is much higher than what the car is worth, it’s not a good idea to purchase the car. You may not get approved for a loan in the first place, and you would be better off buying the car used somewhere else.But if you decide that it is a good idea to purchase your car and the numbers add up, you can start shopping around for financing deals.Step 3: Apply for financing.If you decide to get a loan it is imperative that you do your homework and shop around. You can even use a company that specializes in car lease buyouts. They can help you find the perfect loan for your situation and even help you with the pesky paperwork. You should apply with 3-5 different lenders to give yourself the best chance at getting a loan with good terms. Be sure to apply for these loans within the same two week window so that they will count as one hard inquiry on your credit report. When the offers come in you should compare the following:The interest rateThe repayment periodThe prepayment penaltiesThe customer satisfaction ratings (look online for these)All other fees and termsPay careful attention to the fine print in these contracts. Additional fees and prepayment penalties may affect your ability to refinance in the future.Step 4: Sign and drive.When you find the loan that’s right for you, you can sign on the dotted line and finally own the car you love (well, almost). The lender will send a check to the leasing company and they will hold the title until you complete your payments. And that’s it!What’s the smartest way to buy my leased car?The smartest way to buy your leased car is to use a company that specializes in car lease buyouts, like Auto Approve. While the above process isn’t too complicated, it’s always good to have an advocate on your side that can help guide you through the buyout process. Auto Approve doesn’t charge you fees or mark up your loan (meaning there’s no downside to using Auto Approve).Auto Approve will help you pick the right lenders, apply, and choose the loan that is best for you. After you decide which loan is right for you, Auto Approve will even help you with all of the finalizing paperwork (including the pesky DMV papers). Buying out your lease with Auto Approve will also allow you to bundle GAP insurance and a vehicle protection plan with your monthly payments so that you can fully protect the car you love. And these added benefits can really help you. GAP insurance acts as a bridge between your loan and your car insurance payout. If you are in an accident and your insurance will not cover the total that is left on your loan, GAP insurance will kick in so you are not on the hook for the difference. Vehicle protection plans can help protect you from, well, life. These plans can help cover a lot of problems that can pop up, such as engine trouble, transmission problems, suspension issues, etc. On top of that, an Auto Approve vehicle protection plan comes with 24/7 roadside assistance, rental car reimbursement, and your choice of certified mechanic.But you don’t have to just take our word for it. We have a 96% would recommend rating on LendingTree and a 4.7 out of 5 star rating on TrustPilot that tells you just how satisfied our customers are. The smart way to buy your leased car is to get a car lease buyout loan through Auto Approve.When it comes to buying your leased car the smart way, the answer is simple. So if you have a leased car that you aren’t ready to part with, contact Auto Approve today! Our experts are ready to help keep you in the car you love. Get your free quote today to get started!GET A QUOTE IN 60 SECONDS

If you’ve never leased a car before, it can feel a bit confusing. It can sound like they are speaking a different language at the dealership and if you are unfamiliar with the terms, it can be a turn off. But when you know what the lingo is, it is easier to understand how leasing works and if you are getting a good lease deal.Here are all of the car lease terms you should know before you shop for a new car. Acquisition FeeThis covers the expenses of arranging the loan, such as obtaining your credit report and verifying that you have insurance.Adjusted Capitalized CostThe amount that the lease payments are based on. It is essentially the cost of the car minus any down payment, plus any fees.Base Monthly PaymentYour lease payment will be based on the amount of depreciation that will occur over your lease period. Taxes and fees may be added onto this for your total monthly lease payment.Capitalized CostThe cost of the new car. This is also called the gross capitalized cost. You can (and should) negotiate this price as it is what your monthly payments will be based on.Capitalized Cost ReductionThe amount of money you put down at the beginning of your lease. It is similar to a down payment.Car Lease BuyoutWhen you purchase your car at the end of the lease period.Car Lease Buyout LoanA car loan that will help you to purchase your lease car.Car Lease Buyout PriceThe price that you can purchase your leased car for. It is the residual value of the car plus any taxes or fees.Closed End LeaseThe lessee will not have to pay the difference if the actual value of the car at the end of the lease differs from what is in the contract. This is how most leases work. Consumer Leasing ActThis act, which took effect on January 1, 1998, requires lessors to disclose all leasing costs. Credit ReportYour personal financial history. This keeps track of what accounts you have open, your payment history with each account, and the balance you have on each account. These reports are created by the three major credit bureaus: TransUnion, Equifax,and Experian. Lessors will request a copy of your credit report to determine if you are a good candidate for a lease. Credit ScoreA three digit number that is calculated based on your financial history to indicate your creditworthiness. The numbers range from 300 to 850, and the higher your score is the more creditworthy you are considered. You typically need to have a good credit score to be able to lease a car.Dealer Preparation FeeA fee that may be charged to cover preparing the car to be leased. It usually covers washing the car and filling it up with gas. It can often be negotiated down or eliminated from the lease.DepreciationThe car’s decrease in value over the life of the lease. The depreciation of the car is what you are actually making payments on. It is the difference between capitalized cost and residual value.Disposition FeeThe cost of preparing the car for sale at the end of lease. This is a nonnegotiable fee so that the car may be cleaned, serviced, and prepared for sale as a certified pre owned car.Early TerminationReturning the lease before the agreed upon end date. There is usually a fee for ending the lease at an earlier Excess Mileage FeeA per-mile fee that is charged if you go over the mileage limit that is stated in your contract. This can vary from $.10 per mile to $.30 per mile depending on your lease agreement.Excessive Wear-and-Tear FeeIf there is damage to the car that is above what is expected with daily use, you may be charged a fee. Excessive wear and tear may include the following:Broken or missing parts of the carDents, scratches, or other damages to the body panels or trimCracked glassCuts, tears, and stains on the upholsteryExcessively worn tires (often 1/8" tread at the shallowest point)Poor-quality repairs Lease agreements usually list out what is considered excessive wear and tear. Fees will vary based on the cost to repair the damage.GAP CoverageGAP stands for Guaranteed Auto Protection. This is an optional insurance that will cover the difference between the money you owe on your lease and what your insurance company will reimburse. Hard InquiryA formal request of your credit history from a lessor. When a lessor considers approving a car lease for you, they will request a copy of your credit report to review. This request will actually show up on your credit report and will cause a temporary ding on your credit score. Hard inquiries cannot be made without your permission.IndemnityA section in the lease contract that absolves the lessor from charges that are incurred by the lessee. The car is technically owned by the lessor, so this section shifts the responsibility of damage from the lessor to the lessee (i.e. parking and traffic tickets). Lease InceptionThe beginning of the lease’s term.LesseeThe person who is leasing the car.LessorThe company that arranges for the car to be leased.Lease TermThe length of your lease, typically 24-36 months.Mileage AllowanceThe amount of miles you are allowed to drive on your leased car. Mileage allowances help the lessors to control the amount of depreciation that will occur over the life of the lease. Allowances tend to be between 10,000 and 15,000 per year. Any overages will result in mileage fees.Money FactorThe number that determines the interest you will pay on the lease. These numbers are expressed as small decimals, but multiplying the money factor by 2400 will give you an approximate interest rate that will be more recognizable to you.Open End LeaseOpen End leases require you to pay the difference between the residual value and the actual value of the car if there is a difference at the end of the lease period. These leases are uncommon and you should not accept one. Proof of EmploymentA statement or document that shows you are employed. This proof may be a paystub, a letter from your employer, or a W2. This shows the lessor that you can make your lease payments.Proof of InsuranceLessors require that you have insurance on your leased car. They typically require comprehensive and collision coverage. Many lessors will also require higher bodily injury liability limits, such as $100,000 per person and $300,000 per accident. To show that you have insurance coverage the lessor will usually require a copy of your insurance policy that states the amount of coverage.Proof of ResidenceYou will need to show where you actually live as part of the leasing process. This cannot be a PO box. Lessors want to know where the car will physically be parked if they need to seize it because you have defaulted on your lease.Purchase OptionThe right to buy your leased car at the end of the lease period.Residual ValueThe leased car’s anticipated value at the end of the lease period. The residual value is non-negotiable and is based on the value of the car and the projected depreciation over the life of the lease. If the actual value of the car at the end of the lease period differs from the residual value, it doesn’t matter. The residual value is binding.Sales TaxYou will have to pay sales tax on your leased car, although states vary on when you will actually pay them. Most states add sales tax onto the monthly base payment.Security DepositMoney that you must pay upfront to cover either a default on the lease or to offset additional money you owe at the end of the lease.Soft InquiryThis allows lessors to review your credit score and part of your credit report without it counting as a hard inquiry. Also known as a soft pull, this is common when getting preapproved for a loan. Soft inquiries do not affect your credit score and your approval is not required for this.SubventionWhen the car manufacturer subsidizes the cost of a vehicle to encourage leasing. This typically happens if a car is not selling fast enough.Those are the car leasing terms you should know before you set out to get a new car.Leasing a new car can feel daunting, but a little research can help you feel confident in your car leasing journey. If you already have a leased car and are interested in buying it, Auto Approve can help! We can help you secure a car lease buyout loan so you can finally own the car you love. So don’t wait to make your car yours! GET A QUOTE IN 60 SECONDS

Let’s face it: life is expensive right now. Rent, groceries, gas, insurance–the bills never seem to stop. So who couldn’t use a little extra breathing room every month? If you have a car loan, you may have heard that refinancing can help you out a lot. But what exactly is refinancing, and is now the right time to refinance?Here’s why now might be a great time to refinance your car loan (and how you can decide if it’s right for you).What is car loan refinancing?Car loan refinancing is when you pay off your existing car loan with a new car loan. The new loan should have better terms and conditions. Maybe it has a better car loan interest rate (this is the most popular reason for car loan refinancing), maybe it has a different repayment period which will drastically change your monthly payments, or maybe you need to change who is listed on the loan. All of these are great reasons to refinance your car loan.When you refinance a car you apply to different lenders as you may have done when you initially financed your car. You can apply to traditional banks, online lenders, and credit unions. You can also use a car loan refinance service that specializes in refinancing. These companies can help you navigate the process of refinance, helping you select who to apply with and determining the best lender for your situation.Will interest rates go down in 2023?As always, it’s hard to exactly predict what will happen with auto loan rates in 2023. But most experts predict that auto loan rates will not go down, and may tick up a bit more. This has to do with the Fed’s reaction to high inflation.When inflation hits (which has been the case for the past two years) the government steps in to try to correct it. Our inflation situation is due to a number of factors, but supply chain issues is one of the top reasons we are in this situation. There is a lot of demand for products but there is not a lot of supply of those products. And this demand drives prices high. To combat this, the Fed tries to decrease demand in the market. Raising interest makes borrowing money more expensive, and therefore reduces demand.So where do we go from here? The Fed still plans to raise interest rates a few more times throughout 2023, so it’s probable that interest rates will tick up higher in the coming months. Should I refinance my car loan now?If interest rates are increasing, does that mean it’s a bad time to refinance your car? Not necessarily. The truth is it all depends on your situation and why you are looking to refinance. To determine if now is the right time to refinance, ask yourself the following questions.Has my credit score improved since my initial financing?Your credit score is one of the biggest factors that affects the car loan interest rate you will be offered. If your credit score has improved since your initial financing, you may still qualify for a better interest rate. Let’s examine the different interest rates you may be offered based on your credit scores.Let’s look at the average car loan rates for today (from RateGenius). If you have a credit score of 670, you could be offered an interest rate of 8.03% over 36 months. But if you had an excellent credit score of 810, you may be offered an interest rate of 4.67% over 36 months. That goes to show how much of an effect your credit score has on the car loan interest rate you are offered.There are a number of reasons why your credit score may have improved since your initial financing. These factors may include:A negative event expired (such as a bankruptcy)You’ve paid off a significant amount of debtYou have improved the timeliness of your paymentsYou have increased your credit limitsYou have a better mix of credits now You have corrected errors on your credit reportIf your credit score has improved since you initially financed, you can still save a lot of money by refinancing (even if the market rates have increased).Do I need to add or remove a cosigner? If you are looking to refinance your loan because you need to add or remove a cosigner, it might still be a good time for you. Many people initially finance with a cosigner to get approved (if they don’t have much credit history) or to secure a better interest rate.A cosigner lessens the risk that the lender is taking, so you can get a lower rate by having a loved one with good credit sign their name. So if you want to get a better interest rate, you can refinance with a cosigner.On the other hand, if you want to free your loved one from the financial responsibility of your loan, refinancing is the way to go. Be sure to prepare your credit score ahead of time so that you can get the best terms possible.Am I having trouble making my monthly payments?When you refinance your loan you will have the opportunity to change your repayment period. And changing your repayment period can drastically change your monthly payments.If you are having trouble making your monthly payments, lengthening your repayment period can significantly reduce your monthly payments. Because you have a longer time to pay off the principal, your payments can reduce by hundreds every month. You will end up paying more over the life of the loan since you will be paying interest for a longer period, but this may be worth it. You can also refinance to a shorter payment period. This will help you save money over the life of your loan since you will be paying interest for less time. You will also be able to secure a lower interest rate by having a shorter repayment period.That’s how you can decide if now is the right time to refinance your car loan.It’s true that right now isn’t the best time for everyone to refinance their car loan. The market rates are not particularly low, and lower rates don’t seem to be on the immediate horizon.But that doesn’t mean that it’s a bad time to refinance for you! Refinancing is all about your personal situation. If your credit score has improved or you need to adjust your repayment period, refinancing might still be a great option for you.Our experts at Auto Approve can help you decide if the time is right for you. GET A QUOTE IN 60 SECONDS

Refinancing can feel overwhelming for many reasons. And a major part of that overwhelming feeling is that it sounds overwhelming. If you don’t know the lingo, that is. But let’s break down all of these terms and demystify the refinancing process.Here are all of the car loan refinance terms you should know before you start the refinance process.AmortizationHow your loan payments are scheduled and divided up to pay the interest and the principal. An amortization table can show you how your payments will be allocated throughout your repayment period.APRThis stands for Annual Percentage Rate. This figure, expressed as a percentage, is your interest rate plus any additional fees you are responsible for. It is important to consider the APR as it gives a much more accurate idea of how much you will be spending on your car loan.Co-borrowerA co-borrower is a person who will share joint responsibility of the loan with you. This is different from a cosigner.CollateralThis is the asset that secures the loan. If you were to stop making your car payments and default on the loan, the bank would be able to take your car as payment.CosignerA co-signer is a person who agrees to back the loan if you default on it, but they do not share joint responsibility of the loan as a co-borrower does.Credit ReportYour personal financial history. It tracks what accounts you have open, your payment history with each account, and the balance you have on each account. These reports are created by the three major credit bureaus: TransUnion, Equifax,and Experian. You should routinely check your credit report to ensure there are no errors. Lenders will request a copy of your credit report to determine if you are a good candidate for a loan.Credit ScoreA three digit number that is calculated based on your financial history to indicate your creditworthiness. The numbers range from 300 to 850, and the higher your score is the more creditworthy you are considered. Your credit score is one of the biggest determiners of the car loan interest rate you are offered (the biggest factor that you can control at least).Current BalanceThe amount that you currently owe as listed on your monthly statement.DepreciationThe loss of value that occurs as your car ages and wears. Down PaymentThe amount of cash you pay up front for your car. This amount is not financed. You should aim to put down at least 20% of the car’s total cost. This will help you to stay ahead of the depreciation that occurs.Finance RateAnother term for the APR of your car loan.FICO Credit ScoreThere are different programs that will calculate a credit score, but FICO is the most popular of the providers.GAP InsuranceStands for Guaranteed Asset Protection. This is optional coverage that will cover the difference between your vehicle’s value (which is what insurance will pay) and the amount that you owe on your car in the event of an accident. Let’s say your car is totalled and your insurance pays you the value of your car, which is $15,000. But you still owe $17,000 on your loan. GAP insurance will cover this difference so you are not paying out of pocket.Hard InquiryA formal request of your credit history from a lender. When a lender considers approving a loan for you, they will request a copy of your credit report to review. This request will actually show up on your credit report and will cause a temporary ding on your credit score. Hard inquiries cannot be made without your permission.Interest RateThis is the cost of borrowing money. Expressed as a percentage, the interest rate you are offered will be based on the market rates, your credit score and financial history, your income, and other factors.Kelley Blue Book ValueKelley Blue Book is viewed as a reputable and reliable place to check your car’s value. When you are trying to determine the market value of your car, Kelly Blue Book is a great place to do so. The value will be based not only on the make, model, and year of your car, but also on the mileage and condition of the car. It’s a good idea to keep an eye on the value of your car throughout the loan period to ensure that depreciation is not outpacing your loan payments (see “Underwater” and “Upside Down”).LienThe legal right to your car. The lender has a lien on your car, so if you do not pay your debt to them the car will belong to them.Loan ModificationIf you refinance your loan with the same lender, they may report it to credit bureaus as a loan modification rather than a new loan. This will not affect your credit score as a new loan would.Loan TermAlso known as a repayment period, this is the amount of time you have to pay back your car loan. Non-Sufficient Funds Fee (NSF)If one of your payments does not clear or there are not enough funds in your account to cover the check, you may be charged an NSF fee. The amount will be listed in your contract.Original Loan AmountThis is the amount of money you originally took out to pay for your car. It is typically the cost of the car plus taxes and fees minus the down payment you made.Payoff AmountThe amount you will need to pay to get rid of your loan entirely. It is separate from your current balance, which may not reflect the interest and fees that you will be responsible for to pay off your loan entirely.Prepayment PenaltyA fee for paying off your car loan early. These penalties may be listed in your original car loan contract. These penalties are designed to offset the losses in profit that occur when you pay off your loan early. Prepayment penalties will at times offset any savings that refinancing can provide, so it’s important to know what these penalties are before you commit to refinancing your car loan.PrincipalThis is the same as your original loan amount. It is the amount of money you originally borrowed to purchase your car. When you make your monthly payments your money is first applied to taxes and fees, then applied to interest that is due, and the remainder goes to paying down your principal.Proof of EmploymentA statement or document that shows you are employed. This proof may be a paystub, a letter from your employer, or a W2. This shows the lender that you have means to repay your loan.Proof of InsuranceTo show that you have insurance coverage the lender will usually require a copy of your insurance policy that states the amount of coverage.Proof of ResidenceYou will need to show where you actually live as part of the refinancing process. This cannot be a PO box. Lenders want to know where the car will physically be parked if they need to seize it because you have defaulted on your loan.RefinanceThis is when you pay off your current loan with a new loan. Your new loan will ideally have a better interest rate and/or better terms. Refinancing allows you to add a cosigner or co borrower, change your interest rate, and change your repayment period.Secured LoanA loan that is backed by collateral, such as a car loan. If a person defaults on their loan the collateral is taken as payment.Soft InquiryThis allows lenders to review your credit score and part of your credit report without it counting as a hard inquiry. Also known as a soft pull, this is common when getting preapproved for a loan. Soft inquiries do not affect your credit score and your approval is not required for this.UnderwaterWhen you owe more on your loan than your car is worth. For example if the market value of your car is $15,000 but you owe $17,000 on your car, it is considered underwater. This happens when depreciation outpaces your payments. It is common for this to happen if you do not make a down payment (or make too small of a down payment). Unsecured LoanA loan that is not backed by an asset for collateral. These loans tend to have higher interest rates because they are higher risk for the lender.Upside DownThis is the same as being underwater. It is when you owe more on your car than your car is worth.Usury LawDefines the maximum amount of interest in your state that a company can charge you. Those are all the terms you should know before you refinance your car loan.At Auto Approve we take the mystery out of refinancing. After all, refinance is our specialty. So don’t wait to get in touch and find out just how much money you could be saving.GET A QUOTE IN 60 SECONDS

Car refinancing may seem simple. After all, you are just replacing one loan with another, right? Despite how simple it may seem, there are a lot of ways that it can actually go wrong. So today we are talking about the most common mistakes people make when refinancing their car loan and how you can avoid them.Here are the top car loan refinancing mistakes and how you can avoid them. What is car loan refinancing?Car loan refinancing is when you replace your existing car loan with a new car loan, ideally one that has better terms and a better car loan APR. When you refinance, you apply for a loan as you did with your initial financing. When you secure your new loan, your new lender will pay off the old loan and you will no longer owe your original loan. You will be responsible for the remaining balance on the loan as well as whatever fees are outlined in your loan agreement.There are many reasons why people choose to refinance their car loans. But the primary reason is that you can save a lot of money by doing so. Refinancing is popular for the following reasons:You can save money by refinancing to a lower APR.You can cut your monthly payments by refinance to a longer repayment period.You can save money over the life of your loan by shortening your repayment period.You can add a cosigner to help them build credit.You can add a cosigner and get a better APR due to their good credit history.You can remove a cosigner.Refinancing your car loan can be incredibly beneficial, but it’s important to be prepared before applying for car loan refinance. Mistakes with car loan refinancing can cost you money, time, and can give you one big headache.What are the most common mistakes people make when refinancing their car loan?They don’t check the refinancing requirements first.Before you apply for a car loan refinance you should be aware of the requirements (and if you qualify). Each lender will have different requirements about the age, condition, and mileage of the car, the balance remaining on your car loan, and the time remaining on your car loan. Be sure that you qualify before you waste your time applying.They accept the first offer they receive.A big mistake that many people make is accepting the first offer they receive. Just like with a lot of things in life, it’s important to shop around when you are refinancing your loan. You should aim to apply with 3-5 lenders when you refinance. This gives you wiggle room and allows you to compare rates and terms. You should consider applying with traditional banks, online lenders, and credit unions. When you apply, you should be sure to compare all of the following terms:The interest rateThe prepayment penaltiesThe repayment periodThe customer satisfaction ratings.All of these factors are important when determining which car loan refinance is the best for you. Comparing your different offers is much easier when you use a company that specializes in car loan refinance, as they can help you apply and compare.They refinance a car that is too expensive.When refinancing a car loan you want to be sure that the car isn’t too expensive. You should know what the market value of your car is before you refinance, and compare that to the balance you have left on your loan. If you owe more on your car than your car is worth, your loan is considered underwater. This commonly happens if you did not put enough money as a down payment or have overextended yourself and are having trouble making monthly payments. They do not check their credit score first.Your credit score is the most important factor in the car loan APR you will be offered (at least the most important factor that you have control over). Before you consider refinancing your car loan you should check on your credit score and see how you are faring. Do you have excellent credit or great credit? You will most likely be approved and be offered a decent APR. But if your score is less than stellar you will most likely have a harder time getting approved and will be offered a higher APR than if you had excellent credit.Before you apply, request a copy of your credit report. You can do this for free once per year at each of the major credit bureaus. When you get a copy, review it thoroughly for errors and determine if there are steps you can take to increase your score. Do you have a tendency of making late payments? Do you have a few accounts with high credit utilization ratios? Looking through your report can teach you where you should be working to improve. Then see what steps you can take to improve your score before you apply for refinancing. Can you request higher credit limits? Can you prioritize which debts you pay down first? Preparing your credit score for refining will make a world of difference and help you to secure the best car refinance possible.They give up if their application is denied.There are quite a few reasons why people may be denied the first time they apply for a car loan refinance.  These reasons include:There were errors in the applicationYou had a poor credit scoreYou had a lot of debtYou didn’t have a long credit historyWhile some of these may take more time to correct than others, they don’t mean that you should give up on your refinancing entirely. Lenders are required to tell you why you were rejected, so you will be able to take action and fix whatever the problem is.A very common reason people are denied a car loan is that there were errors in the application. If you forget to fill out a section or fill out a section incorrectly you may be automatically denied a car loan. And while it can be discouraging, it’s always best to hunker down and redo your application, paying extra attention to every section. If you were rejected due to a poor credit score or a lot of debt, try to improve these parts of your finances and reapply in a few months. It may take time, but it will be worth it.If you were denied due to not having a long credit history, you have two options. You can wait and try to build more credit and get a longer credit history length, or you can ask a loved one to cosign. A cosigner can help get you qualify for a refinance and can help you secure a lower car interest rate. Make sure your cosigner is someone who you trust who has a good credit history.How can I get the best car loan refinance?If you are considering refinancing your car loan, here are our top tips for getting the best refinance possible. Do your research. Research which lenders you want to apply for refinancing with and what their requirements are. Prepare your finances. Get a copy of your credit report and determine how you can get your score in the best shape possible before applying for refinance. Fixing errors, paying down debts strategically, and requesting higher credit limits may all help to give your score the boost it needs.Consider a company that specializes in refinance. Using a company that specializes in car loan refinance can save you a lot of time, hassle, and stress. Refinancing companies like Auto Approve know how to shop around and compare to get you the best car loan refinance possible. Know what your current loan looks like. It’s a great idea to review your current loan thoroughly before you apply for refinance. You should know what your APR is, the balance that is remaining, and what prepayment penalties and/or fees there might be. This will help you determine what your refinance loan should look like.Gather your information ahead of time. It can save you a big headache if you gather your information ahead of time. You will need identification, pay stubs, proof of insurance, proof of residency, and your loan information to apply with most lenders. Preparing yourself and your finances for car loan refinancing will help ensure that you get the best deal possible. Those are the biggest car refinancing mistakes people make and how you can avoid them.Mistakes happen, but when mistakes happen in your car loan refinancing it can cost you. Car refinancing is simple when you use a company that specializes in refinancing. At Auto Approve, it’s what we do. We have relationships with lenders across the country so we can get you the most competitive deals and rates. We can also help guide you through the process of refinancing so that it’s as easy as can be. So don’t wait to save. Contact Auto Approve today to get started!GET A QUOTE IN 60 SECONDS

When you decide to refinance your car, your goal is most likely to save money (although there are other reasons people choose to refinance). And while there are many factors that affect the car loan APR you are offered, the current auto refinance rates are a huge contributor to the APR you will be offered. So what are the current refinancing rates for cars in late January 2023?Here are the current refinance rates for cars in January 2023.What factors go into refinancing a car?When you refinance a car, there are several factors that will determine what car loan interest rate you are offered. Lenders will consider the totality of your application when determining the appropriate APR for your car loan.Your credit score Your credit score is an indicator of how likely you are to pay your loan back in full and on time. This is one of the most important factors that lenders will consider when calculating your car loan interest rate. Your score will fall into one of five brackets:300-579: Poor580-669: Fair670-739: Good740-799: Very Good800-850: ExcellentThe best refinance rates are reserved for those with excellent and very good credit. If you have poor credit you may have a very hard time finding a reasonable car loan APR rate, or getting approved at all. There are certain lenders that deal with those who have poor credit, but they typically have very high interest rates and strict penalties. That is why it is always a good idea to work on your credit score before applying for car loan refinance to give yourself the best rates possible. Your incomeLenders will also pay careful consideration to your income to ensure that you have the means to repay the loan. Lenders will look at your pre tax income to determine if you can afford the loan you are seeking. Your debt to income ratioIn addition to just your income, lenders will consider how much your income compares to your debts. If you owe a lot compared to how much income you have, lenders will feel like you are overextending yourself. The lower your DTI is, the more likely you are to be approved (and for a better refinance interest rate). Your DTI should be below 40%, but you may still qualify if your ratio is up to 50%.Your carLenders will also look at the car that you are refinancing when determining if you qualify and the refinance rate. They will consider the make, model, age, trim features, and mileage. They want to ensure that the car they are loaning money for is worth the money. In other words, if the market value of the car is less than the loan value, they might not see the value in refinancing it. If you default on the loan, they want to ensure they can sell your car and recuperate any losses.What is the current refinance rate for cars?While the car loan APR you will be offered will be based on the above factors, it will also be based on the market rates. While car refinance rates are not as sensitive to fluctuations in the economy as much as some other interest rates, they are still very much affected by the current economic conditions.So what are the current refinance rates for cars? As of late January 2023, the current car loan refinance average rates are:If you have a credit score between 750-850:4.67% for a 36-month loan5.55% for a 48-month loan5.68% for a 60-month loan6.15% for a 72-month loanIf you have a credit score between 700-749:6.48% for a 36-month loan7.15% for a 48-month loan7.05% for a 60-month loan7.16% for a 72-month loanIf you have a credit score between 640-699:8.03% for a 36-month loan10.11% for a 48-month loan9.81% for a 60-month loan9.84% for a 72-month loanIf you have a credit score below 639:11.84% for a 36-month loan13.27% for a 48-month loan13.43% for a 60-month loan13.35% for a 72-month loan*Note that all of the above interest rates are averages from rategenius.comAs you can see, it is incredibly beneficial to have a good credit score. Those with excellent credit were offered interest rates that were less than half of those with poor credit for loans over the same length of time. Taking the time to improve your credit score before you apply for car loan refinance can help ensure you will get the best rate possible.Is it smart to refinance my car?So is it a good idea to refinance your car? Well, it depends on your situation. But if you answer yes to any of the questions below, it might be worth considering car loan refinance. Has my credit score improved since initial financing?Improving your credit score is one of the top ways you can secure a lower car loan APR. And when you secure a lower APR, you can save a lot of money over the life of your loan.Your credit score may have improved for a number of reasons:A negative event expired, such as a bankruptcy.You paid down some of your debt.Your credit limits increased.You have been making consistent on time payments.Hard inquiries on your report expired.Errors on your credit report were corrected.Your score can increase or decrease for many reasons, so it’s a good idea to keep an eye on your score and report (we recommend checking your report three times per year). Having a good credit score will not only secure you better car loan interest rates, but it will help you qualify for other loans, get better insurance rates, and can even help you score a job. So it’s a good idea to pay a lot of attention to your credit score.Am I having trouble making my monthly car payments?If your monthly payments are getting away from you, refinancing your car loan may help you. Refinancing will allow you to get a new car loan interest rate, but even if you do not qualify for a lower APR, refinancing may still help you to get more manageable monthly payments.When you refinance your car you are able to change your repayment period. The length of your repayment period will drastically change the monthly payments you will have. A shorter repayment period will mean that your payments will be high, since you have a shorter amount of time to pay back your loan. A longer repayment period means that you will have more time to repay your loan, so the principal will be divided up over a longer period of time. This means much lower monthly payments for you. But it also means that you will pay a bit more in interest. Interest rates tend to tick a little higher as the repayment period extends. You will also pay interest over a longer period of time, so it can cost you more. But this may be more than worth it to give you breathing room in your budget.Do I want to add or remove a cosigner? Another major reason that people refinance is to add or remove a cosigner. You cannot simply call up your current lender and request that someone be added or removed from your loan. This is because lending decisions are made based on everyone who is listed on the agreement, and removing or adding someone might drastically affect if the loan will be paid back or not. So in order to add or remove a cosigner you will need to refinance your car loan.Are the prevailing market rates better now than they were when I originally financed?Look at the market rates today and compare them to your initial financing. If the rates today are lower, there’s a chance you can qualify for a lower rate and save yourself a good deal of money with a car loan refinance.And that’s what the current car loan refinance rates look like in early 2023.A lot of people are overpaying every month on their car loans. That means that car loan refinancing can save a lot of people a lot of money. And the best news is that refinancing your car loan is super easy when you use a company that specializes in car loan refinancing, like Auto Approve. Refinancing is our specialty, so our experts can help guide you through the process from start to finish. They can help you determine if you qualify for car loan refinance, help you fill out the applications, and assist with the final paperwork. Plus you can get other benefits such as GAP insurance and a vehicle protection plan which can be bundled into your monthly payments. And all of this can make refinancing super easy!So don’t wait any longer to start saving money. Contact Auto Approve today to get started!GET A QUOTE IN 60 SECONDS