See what’s new with
Auto Approve

It’s still cold outside but we are thinking about the spring, and that means one thing: spring cleaning! While spring cleaning isn’t the most fun thing in the world, it is always a good opportunity to reboot and refresh. When you think of spring cleaning, you may not think immediately of cleaning your finances, but it’s actually a great time to do so. Today we are going to talk all about the benefits of cleaning out your finances and how you can do so effectively.Here are our top 10 tips for spring cleaning your finances.Tip#1: Review your financial goals.Now is a great time to look at what your financial goals are for the next several months. How do you want to prioritize your spending this year? There are a lot of different goals you may have, and those goals can motivate you to make some healthy changes in your finances. They may include:Saving for a down payment for a house.Saving for a down payment for a new car.Paying off credit card debt.Going on a vacation.Starting a retirement fund.Starting an emergency fund.Expand (or start) your investment portfolio.Realigning your goals will help you focus on cleaning out your finances and keeping your eye on the prize.Tip #2: Review your budget.Now that the holidays are over and reality has set back in, it’s a great time to take a look at your budget. With your financial goals fresh in your mind you can see how much you need to save. Going through your budget (or maybe starting over with a clean slate) can help you set yourself up for success.Account for all of your incoming money in one part of your spreadsheet. This can include your paycheck, any money from a side hustle, dividends, or rental income. Then account for all of your expenses in another part of your spreadsheet. This will include fixed expenses, such as rent and insurance, which does not change from month to month. This will also include variable expenses, which can change from month to month. Variable expenses, such as gas and food, can be averaged out over several months to give you a rough idea of how much you can expect to pay. It’s good to view your budget in a positive light, knowing that saving money will help you to reach your goals for the future. If you view your budget as a restriction, you will likely not stick to it.Tip #3: Cancel subscriptions you don’t use.When you go through your budget you should notice what services you are paying for that you don’t actually use (or use scarcely). Subscriptions have a way of creeping up on us. Netflix, Hulu, HBO, Disney+, Peacock–it’s never ending. So it’s good to sit down and see how much each one is costing you, and decide whether or not each one is worth it. Tip #4: Set up automatic savings deposits.Saving money is easiest when you don’t have to think about it. When you go through your budget you can determine what extra money you may have to deposit into savings (such as the money you freed up by canceling subscriptions). Set up a monthly transfer from your checking account or have a certain percentage of your paycheck deposited into savings. Automating this will help you save with very little effort on your part.Tip #5: Set up automatic investing.If you are in a position to invest some extra money, there are a lot of apps and websites that can help automate this for you. You can select the level of risk you want to take and these sites will allocate your money appropriately. Acorns, Betterment, and Wealthfront are just a few that offer services like this.Tip #6: Review your loans.If you have loans, such as a mortgage or auto loan, review the APR and repayment terms you have. If your credit score has improved since your initial financing, you may be able to refinance your loans and get better interest rates and conditions. If you are wondering if you qualify for a car loan refinance, Auto Approve can help you determine if you are eligible. Refinancing your loans can help you save money by reducing the amount of interest you will pay over the life of the loan. It also allows you to change your repayment plan, which can drastically change your monthly payments. If you refinance to a shorter repayment period you will end up spending more money every month, but you will save a lot of money on interest over the repayment period. If you refinance to a longer repayment period you will significantly lower your monthly payments and give yourself a lot of breathing room every month (although you will end up spending more money over the life of the loan). Either way, refinancing can help you manage your money goals.Tip #7: Check out your credit report.It’s incredibly important to keep an eye on your credit report throughout the year. Now is a great time to request a copy of your credit report and carefully review it for errors. When you sit down with it, be sure to check the following:Your personal information section.Review to make sure that your name, address, social security number, employment history, and marital status are all up to date.Your public records section.Review to make sure that there are accurate records of any lawsuits, bankruptcies, liens and judgements. Your credit accounts section.Review it to make sure your payment history is correct, that account ownership is correctly listed, that debts that are paid off are listed as so, that closed accounts are accurately noted, and that there is no negative payment information that is older than seven years.Your inquiries section.Review this to ensure that you authorized any hard inquiries on your account.If you notice any errors, be sure to report them to the credit bureaus as soon as possible. Fixing any errors can make a huge difference on your credit score.As you go through your report, see where you can make improvements. Do you tend to make payments that aren’t in full? Are you a little late here and there? Working to improve your less than great habits can result in a big uptick for your credit score. Tip #8: Actually clean out your house.If we are talking about finances, why did actual cleaning make it onto the list? Well this is actually a great time to do both. Chances are your house is filled with things you don’t need, use, or want anymore. Clearing out the clutter will help you focus your energy and help you make a little cash along the way.Go through every room in your house (you can split this up over a few days so it’s not so overwhelming) and go through every item. Sort everything into three piles: toss, keep, and sell. Electronics, furniture, clothes–these are all things that can be sold. You may be surprised what some people will sell. Try selling on Ebay, Facebook Marketplace, or hold a garage sale. Everything else that can’t be sold (or just doesn’t sell) can be donated. There are a ton of organizations that will come and pick up donated items from your house, such as Greendrop. When you put your room back together, be thoughtful of how you organize.Tip #9: Declutter your paper.Now is a great time to go through all of your paperwork that is taking up too much space. Do you have bank statements, bills, and other miscellaneous papers hanging around? Chances are you don’t need them. Anything that is important should be scanned and uploaded (and kept with a backup). Anything that is worth keeping should go in a fireproof safe. But most billing statements can be found online and downloaded, so save yourself some work if that is an option.Tip# 10: Review and adjust your withholding.You should aim for a $0 tax bill come April. If you withhold too much, the IRS has your money locked up interest free. If you withhold too little, you will owe money and have to pay a penalty. Revisit this number to see how you can tweak it to work for you. Consider seeing a tax advisor to get this number where you want it.Those are our top tips for spring cleaning your finances this year.As we trudge through the rest of winter, spring is on the horizon. Take this time to recharge and get your finances sorted and organized before the rest of the year flies by. You won’t regret taking the time to sort everything out, as it will likely result in a more comfortable financial situation for the remainder of the year.Now is a great time to start fresh with a new auto loan. If refinancing your car loan sounds like a good idea to you, don’t wait to contact Auto Approve! Our experts can help determine if you are eligible and help you navigate the process.So don’t wait, get your free quote today!GET A QUOTE IN 60 SECONDS

There are a lot of benefits to refinancing your car. And the process is actually pretty simple. It can typically be done in a day, and the benefits can be long lasting. But what should you do to prepare for your car loan refinance, and how can you get the best rates possible?Here are our top tips for preparing for your car loan refinance.Tip #1: Decide if it’s worth it to refinance your car loan.Before you start the refinance process, be sure to ask yourself if refinancing your car loan is worth it. After all, if your car loan has a good APR and your repayment terms are working for you, it might not make sense to refinance.To determine if refinancing is worth it, ask yourself the following questions:Has my credit score improved since my initial financing?Have the market rates dropped since my initial financing?Am I having trouble making my monthly payments?Do I want to add or remove a cosigner?If you answered yes to any of these questions, it might be a good time to consider refinancing your car loan. Your credit score is the biggest factor in the car loan APR that you will be offered. So if you know that your credit score has improved since your initial financing, there is a good chance that you will qualify for a better APR. And that can add up to a lot of money in savings.Similarly, if the market rates have decreased since your initial financing, there’s a good chance that you will qualify for a lower APR.If you are having trouble making your monthly car loan payments, auto refinance may be a great option to lower your monthly payments. If you are able to refinance to a lower APR your payments will be lower every month and save you money overall. But even if you don’t qualify for a lower car loan APR, an auto refinance allows you to change your repayment period. Lengthening your repayment period can significantly reduce your monthly payments (although you will end up spending more over the length of your loan).If you would like to either add or remove a cosigner on your loan, refinancing is the best way to do this. Maybe you have a cosigner on the loan because you were going through a rough financial time and needed a little boost on your application. Removing them will require you to restart your loan entirely.On the other hand if you are interested in refinancing but don’t have a stellar credit score, refinancing your car loan with a cosigner can get you a better car loan APR and better repayment terms.Tip #2: Review your current loan.In order to determine if it’s worth it to refinance you should review your current loan. First up, you will have to make sure that your current loan is eligible for auto refinance. Most lenders have a minimum amount that you will have to borrow so if your loan is near the end of repayment you may not qualify.Additionally you will want to know your current rate, monthly payment, and repayment period. This will help you determine what you can expect from your auto refinance. Be sure to read through any fine print to determine whether or not there are prepayment penalties. Sometimes these penalties will outweigh any savings that vehicle refinance may provide, so you want to be sure you do the math ahead of time.Tip #3: Prepare your credit score.As we mentioned before, your credit score is the biggest factor that lenders will look at when considering whether or not to offer you financing. Because of this, you want to prepare your score as much as possible and ensure that your score is in good shape. There are several steps you can take to ensure your score is in the best shape possible:Make full, on time, consistent payments to all of your accounts.Enroll in autopay for your bills if possible.Resist opening any other new lines of credit.Request higher credit limits on your accounts.Pay off debts that have a high credit utilization ratio first.Request a copy of your credit report and review it for errors.If you have a less than stellar credit score, you may still be able to get an auto refinance loan. But the better your score is, the better the car loan APR and repayment terms will be, so it’s a good idea to take the time to improve your score before applying. The best car loan refinance rates are reserved for those with good and excellent credit scores, typically above 750. The higher your score is, the better your car loan APR will be.Tip #4: Do the math.It’s important to understand exactly what your goal is with refinancing. Do you simply want to have lower monthly payments? Do you want to save money overall during the life of the loan? Knowing what your goal is will help you when deciding which loan is right for you.If you want to have lower monthly payments, a lower interest rate and/or lengthening your repayment period will help. If you want to save money overall, a lower interest rate and/or shortening your repayment period will help. You should take into account the current value of your car when deciding what is a good option for you too. Going to Kelley Blue Book or Edmunds and seeing your car’s value will help you compare it to the amount you have left on your loan. If you owe more on your car than the car is worth, you will most likely have a hard time refinancing (this means your car is underwater).Tip #5: Prepare your paperwork.It’s good to have all of your ducks in a row before you start applying for auto refinance. Getting your paperwork gathered and scanned will help you apply quickly and easily.Requirements will vary from lender to lender, but typically all lenders require the following documents:Proof of identity. This may include a driver’s license or passport.Proof of income. This may include W-2s or your most recent pay stubsProof of residency. This may include a recent utility bill, your lease agreement, monthly mortgage statement or tax bill.Proof of insurance. A recent monthly statement or insurance card should suffice.Information about your existing loan. They will want to know your balance, interest rate, loan term and monthly payment.Details about your vehicle. The year, make, model, mileage and vehicle identification number will all be required.The exact requirements may vary from lender to lender, but this will give you a good idea of what you will need and help you to get a head start with your applications. Having all of this information ready to go will make applying for auto refinance super easy.Tip #6: Use a company that specializes in auto refinance.Refinancing your car is super easy when you use a company that specializes in auto refinance. Not only will they be able to walk you through the process, but they will have relationships with lenders across the country (which means you will have the best chance at securing good terms.)Using Auto Approve will make refinancing your car loan a cinch. There are so many benefits to using Auto Approve, including:Fast turn-around timePersonalized serviceGAP insurance availableLarge network of competitive lendersVehicle protection plans that can be bundledAnd moreOur customers love us, but you don't just have to take our word for it.  We have an A+ rating from the Better Business Bureau, a 96% would-recommended rating on Lending Tree, and a 4.7 out of 5 star rating on TrustPilot. With ratings like that, you know you can trust Auto Approve to get you the best refinance rates and make the process as easy as possible.When you use a company that specializes in refinance, they can help you with the following:Determine if your loan is eligible for car loan refinanceHelp you with your car loan refinance applicationsShop around for the best rates and termsGuide you through picking the best car refinance loanHelp you cross the “t”s and dot the “i”s with your new loanCoordinate paperwork and repayment for your original loanCalling in a company that specializes in refinance can take a lot of things off of your plate and simplify the process a lot.Those are our top tips for preparing for auto refinance.Refinancing your car loan is easy when you follow these tips. It’s even easier if you use Auto Approve to handle your refinance for you. It takes just a few minutes to get started (and you don’t even need to provide your social security number to determine whether or not you qualify).So don’t wait to see how much money you could be saving, get in touch with Auto Approve today!GET A QUOTE IN 60 SECONDS

When you buy a new car, a factory warranty always comes standard. Warranties are essentially a promise from the dealership that they stand behind their product and that if something goes wrong, they will be sure to fix it for you. But vehicle protection plans are a separate thing entirely. So how do vehicle protection plans work, and how are they different from warranties?Here’s everything you need to know about warranties and vehicle protection plans, and how you can decide if a vehicle protection plan is worth it.What is a factory warranty?Factory warranties have been offered for almost one hundred years as a promise to the consumer that the car manufacturers stand behind their products. In the early years of car manufacturing, “buyer beware” was the slogan of the time. Henry Ford decided to offer a warranty to give peace of mind to consumers, covering “90 days on material; 30 days on labor. No guarantee whatsoever on fan belts, glass, bulbs, wiring, transmission bands, hose connections, commutator shells, rollers, spark plugs or gaskets.” While that warranty is nothing compared to today, it set the stage for the future. That 90 day guarantee became standard with auto purchases up until the 1950s. At that time, manufacturers began to cover more and more parts, but realized that there needed to be a time or mileage limitation to keep the warranty reasonable. As competition emerged at home and abroad, warranties became a marketing tool. At times, these warranties cost manufacturers a lot of money when they were not producing quality materials. And while this hurt them, it also encouraged them to make better quality vehicles that could stand up to the competition (and not need warranty repairs).Today most new cars come with limited warranties. They either come with a bumper-to-bumper warranty, limited powertrain warranty, or both. Limited bumper-to-bumper warranty: covers most things that can go wrong on your car, generally only excluding things like wear and tear and theftLimited powertrain warranty: covers the parts of your car that make the car drive, such as the drivetrain and the transmissionThe term “limited” means that it is for a limited amount of time, typically three or five years or a certain amount of miles, whatever comes first. Many dealers will offer a combination of these two types of warranties, such as a three year limited bumper-to-bumper warranty and a five year limited powertrain warranty. This gives owners an additional two years of coverage for the main components of the car.What is a vehicle protection plan? The problem with warranties is they don’t last forever. And when they expire consumers may feel significant unease that they will be on the hook for some expensive repairs. That’s when a vehicle protection plan comes into play.Vehicle protection plans are designed to cover much of the same things that a warranty covers. Coverage will vary greatly from plan to plan, but typically a vehicle protection plan will cover:EngineTransmissionDrive AxleElectrical ComponentsBrakesSuspensionAnd moreLet’s say you have a three year bumper-to-bumper warranty and your car is financed over four years. Your warranty expires and your transmission goes when you haven’t fully paid your car off yet. Now you are on the hook for a $3200 repair bill (and you don’t even own your car yet!)If you are like a lot of people, you don’t just have $3200 laying around that you don’t need. A bill like that would cause a serious problem for many people in the United States. In fact a recent Prudential study found that only 50% of Americans have more than $500 in savings. So a big car repair would really throw your finances into disarray.But if you had a vehicle protection plan this would not be the case. The vehicle protection plan would cover the new transmission and labor. You may be asking “Aren’t I just paying for the protection plan in place of the repair? What is the benefit?” It’s true that some vehicle protection plans are paid for up front. That one sum can save you hassle and headache when something does go wrong. But what is even better is if you can pay in monthly installments. Auto Approve allows you to bundle a vehicle protection plan with your car loan. So instead of paying it all at once, you are just paying a little extra every month on your financing payments.It is important to note that vehicle protection plans do not cover everything. The following are commonly not covered by vehicle protection plans:TiresPaintExhaust systemsReplacement light bulbsVehicle batteriesShocksEssentially vehicle protection plans do not cover maintenance or damage due to wear and tear. Vehicle protection plans also do not replace your regular insurance, which would cover repairs from accidents.Is it worth it to get a vehicle protection plan?So the million dollar question is: is it worth it to get a vehicle protection plan? Well, it depends a lot on your situation. For many people vehicle protection plans are unnecessary. If any of the following apply to you, it might not be worth it:You like to work on your car yourself and do not want to be obligated to take your car to a mechanic.It’s your secondary car that you do not rely on. If your car is in the shop for a while it won’t be a big deal for you. You are thinking about getting rid of your car in the very near future.A vehicle protection plan might be a good idea if you prefer taking your car to the mechanic, depend on your car a lot, and plan on keeping your car for a while. And there are a lot of benefits to getting a vehicle protection plan.It offers peace of mind.One of the biggest reasons people like vehicle protection plans (and warranties in general) is that it provides you peace of mind. There is not a cloud hanging over you of what could happen. You know that if something goes wrong with your car, you are covered.It can protect your car’s financing.If your warranty ends before your loan repayment period is over, a vehicle protection plan is a great idea. Consider our example above, where the warranty ended at three years but the loan repayment period was four years. If something happens to your car after the warranty is over but you still have to make payments, you will be in a very undesirable position. If you are unable to afford to fix your car, you will still be making payments on a useless car. But a vehicle protection plan can fill that gap and ensure you are covered.There are usually extra perks.Many vehicle protection plans offer other perks in addition to paying for repairs. For example, a vehicle protection plan with Auto Approve comes with the following perks:24/7 roadside assistanceUp to $50 per day rental reimbursementCourtesy towingYour choice of certified-ASE mechanicWhen something goes wrong with your car, there are always additional costs that you may not think of immediately. But a rental car and towing can add a lot onto a repair bill (and add further stress to an already tight budget). But a vehicle protection plan will help you pay for all of these costs while your car is repaired by a certified mechanic. Afterall, you have to be sure that the repairs will be done correctly, so a certified mechanic is always a good idea.It can help you plan for emergencies.Ok, so you can never really plan for emergencies. But you can try to be as prepared as possible for when something happens. It’s always a good idea to have an emergency fund (even if you get a vehicle protection plan, you should have an emergency fund as well). But vehicle protection plans give you another way to be prepared. And by rolling your payments into your financing payments you can easily get a vehicle protection plan without worrying about starting a separate account or budgeting it out separately. That’s the difference between warranties and vehicle protection plans, and why a vehicle protection plan might be a good idea for you.Vehicle protection plans give you a little extra protection and coverage in an uncertain world. While it is not a replacement for a regular warranty or insurance, it can help fill in the gap if something should happen to your car.And the great news is that if you refinance your car loan with Auto Approve we can bundle a vehicle protection plan into your finance payments. This makes it easy and affordable to get extra coverage, plus all of the extra perks that come with a vehicle protection plan. If refinancing your car loan is on your mind, contact Auto Approve today! Our experts can help guide you through the process and let you know just how much money you could be saving.Don’t wait, get your free quote today!GET A QUOTE IN 60 SECONDS

Leasing a car is a great option for many people, but leasing has changed significantly in the past few years. It is becoming a less popular option, with about 30% of new cars being leased before the pandemic compared to about 20% now. But why is this the case, and is leasing a car still a good idea?Here’s what’s going on with car leases in 2023.What are the benefits of leasing a car?Leasing a car is a popular choice for a number of reasons, and depending on your situation it might be a great option for you. It is cheaper than financing a car.One of the major advantages to leasing is simple: it’s much cheaper. When you finance a car you are paying for the whole car over the course of your repayment period. Whether it’s three years or six years, you will pay off the entirety of the car, plus interest and fees, in that period. But leasing works differently. You only pay for the depreciation that occurs over the period that you are leasing. If your car’s residual value (the expected value of the car at the end of the lease period) is $10,000 less than the sticker price of the car, your lease payments will pay for this $10,000 difference (plus interest). Compare that to paying for the entire $30,000 car and it’s clear to see that it's a much cheaper alternative.You don’t need as much money up front.Similarly, when you lease a car you don’t have to worry about securing a down payment. Down payments are essential when you are financing a car. They keep your monthly payments lower, secure you better car loan APRs, and help combat depreciation (which can make your loan go underwater). But leasing doesn’t require a down payment, and there is rarely a benefit for providing one.You can get a new car every few years.If you are the type of person who likes to have the latest and greatest, leasing is a great option. Depending on your lease period, you can get a new car every two or three years without the hassle of selling your car.It provides more tax deductions.If you are a small business owner or work for yourself in some capacity, leasing a car allows you to write off more than if you were financing a new car.Why is it so hard to lease a car right now?If there are so many benefits to leasing, why is it so hard to lease a car today? Well, there are three primary reasons why leasing a car today is more difficult: higher car prices, fewer returning customers, and less compelling lease offers.Higher Car PricesIt’s no secret that new car prices are still at record highs. The pandemic shutdowns caused a delay in new car production which we are still feeling the effects of today. A shortage of raw materials, delays with semiconductor production, and labor shortages have helped create a slowdown in new car production. And when there is less inventory there are higher prices.One of the main reasons people lease is because it’s affordable. But these increased prices are driving higher monthly lease payments and pricing many people out of leases. Fewer Returning CustomersAnother major allure of leasing is that you can get a new car every few years. But in order to get a new car, you have to give your old one back (or buy and then sell it). The lease buyout price is determined based on the residual value of the car, a number that is predetermined when the lease is originally signed. The residual value cannot be changed later on based on market value.But with the current high prices of new cars, it made much more sense for lessees to buy out their leases. The residual values listed in their contracts were much lower than the market prices of their cars, so buying out made much more sense than simply handing the keys back over and leasing another car (with a higher sticker price and therefore higher monthly payments).Many potential returning lessees chose to get a car lease buyout loan which allowed them to purchase their leased cars and keep them. This converted a lot of lessees to car owners.Less Compelling Lease OffersCar manufacturers do not really care about offering car leases as they make more money simply by selling new cars. With less inventory, they would rather sell the cars, especially since the demand is there for new car sales.Leasing incentives are at all time lows right now, and in many cases lease payments are almost as much as financing payments. With no incentive to lease, consumers would rather purchase their cars and have equity at the end of their repayments.Will car leases go down in 2023?While it’s always hard to predict exactly what will happen this year with the automotive market, it is expected that lease prices will probably stay the same this year. New car prices seem set to remain high (although hopefully they will drop off slightly over the next several months), and new car prices are one of the biggest factors of lease payments. Despite these conditions, there will always be people who want to lease their cars no matter what. The benefits far outweigh the disadvantages, even if it is not a cheaper option.Is leasing a car a good idea financially?So, is it a good idea to lease a car now? It depends a lot on your situation. If you need a new car in 2023, leasing and financing may both be expensive options. But when you need a new car, you need a new car. If 2023 is the year for a new car, make sure you take the following steps:Make sure your credit is in top shape before applying for a lease or a loan. The best rates are reserved for people with good and excellent credit scores. Credit score requirements tend to be higher with leases, so if you are looking to lease with a mediocre credit score you may have a hard time.Shop around for the best deals. Whether you are looking to lease or buy, shopping around is key. Monthly payments for both will be heavily based on the price of the car, so getting the best deal will help ensure you have reasonable monthly payments.Research lenders and lease companies. Make sure you are considering customer satisfaction ratings. There’s nothing worse than getting in a bad financial relationship that you can’t bet out of easily.Here’s how to determine whether you should lease or buy a new car in 2023. You should buy a new car if…You like owning a car: If you like the feeling of having a car that is all yours, leasing is definitely not for you. Leasing a car is essentially renting a car, and it’s never truly yours. You like customizing your car: If you are the type of person who likes customizing their car, you should definitely buy a car as opposed to leasing a car. Tinted windows, custom paint jobs, and any type of modifications are strictly prohibited when you lease. You drive a lot: If you drive a lot of miles you will most likely go over your yearly mileage allowance. Going over this allowance will result in heavy fees and make leasing a car much more expensive.You like to work on your own car: When you lease, you have to use a certified and approved mechanic and use certified manufacturer parts. If you are the type of person who wants to fix things themselves, leasing a car is not a good option.You should lease a car if…You want the latest: If you want a new car every few years, leasing is the way to go.You can abide by the limitations: Leases can have strict usage limitations, including mileage allowances. If it doesn’t bother you to play by their rules, leasing may be more beneficial.You don’t want to work on your own car: If you aren’t the type of person who enjoys working on their car on the weekend or tinkering with customizations, leasing may be an easier option.You own your own business. Leasing maximizes tax deductions and may make more sense if you are a business owner.That’s the deal with car leases in 2023.If you need a new car in 2023, it’s entirely possible to lease or finance. It’s important to take the time to research and get your credit score in good shape before you go ahead with anything.If you have a lease already, it might be a good idea to purchase your car with a lease buyout loan. Auto Approve can help connect you with the right lender so you can avoid today’s current volatile auto market and keep the car that you love.Contact Auto Approve today to get a free quote!GET A QUOTE IN 60 SECONDS

If you have ever applied for a car loan only to be rejected, you may feel disheartened (and maybe even a little bit confused). But all is not lost! Understanding why you were turned down can help you get approved in the future, and correcting any problems might even help you get a better car loan APR.Here’s why you might be rejected for a car loan (and what you can do to ensure it doesn’t happen again).Why was I denied a car loan?Getting denied a car loan is not uncommon. There are quite a few reasons why it may happen to you, and there are always ways to fix your situation to ensure that you can get approved for a car loan in the future.Your credit score is poor.A poor credit score is the most common reason to be denied a car loan. Credit scores are broken into the following categories:Exceptional (Super Prime): 800-850Very good (Prime): 740-799Good (Near Prime): 670-739Fair (Subprime): 580-669Very poor (Deep Subprime): 300-579 If your credit score is fair or very poor, you will most likely have a very difficult time getting approved for a car loan. A score of at least 620 is recommended to get approved for a car loan. The better your score is, the better the car loan APR you will be offered. There are auto lenders for people with poor credit scores, but they have high interest rates and tend to have more penalties and fees associated with them. There were errors in your application.It’s also relatively common to be denied for a car loan due to a simple error in your application. If you forgot to fill out a section or mistakenly answered a question, you may be denied a car loan. You have a large amount of debt.If you have a high debt to income ratio you may be denied a car loan. Lenders look at the totality of what you owe, including mortgages, student loans, credit card debt, and more. The more you owe compared to how much income you have may make you more of a risk. You don’t have a long credit history.If you do not have a long credit history, lenders may be reluctant to loan you money for a car. There simply isn’t enough information to determine whether or not you are a good candidate for a loan.What happens if you are denied a car loan?The good news is that getting denied a car loan doesn’t automatically hurt you (besides meaning that you do not have the new car you want). But if you are rejected for multiple loans that all pull hard inquiries on your credit report, that may lower your credit score slightly. Lenders are required to tell you why you were rejected for the loan. If they do not state the reason in the initial response, reach out and inquire. They have 60 days to respond (if they do not respond they will be in breach of the Equal Credit Opportunity Act.It may take some work, but in most cases you can fix whatever caused you to be rejected in the first place.What should I do if I am denied a car loan?If you are denied a car loan, there are several steps you can take to ensure you get approved the next time around. You were denied due to a poor credit score.If you were denied a car loan because you have a poor credit score, you can work to improve your credit score for the next time you apply. Your credit score is based on five different categories:Your payment history (35%): Are your payments on time and in full? Your amounts owed (30%): How much debt are you in and how does that compare to the amount of credit you have available to you? The length of credit history (15%): How long have you had your accounts open?Your credit mix (10%): Do you have a healthy mix of accounts (such as a mortgage, credit card accounts, student loans, etc)?  Your new credit (10%): Do you have new accounts where you haven’t proven your ability to repay?There are many factors that go into your credit score, so taking the time to review your credit report will give you a good sense of what areas you can improve in. Improving your credit payment history is the most effective thing you can do to increase your score as it has the largest weight for your credit score. You can improve this category by committing to making full and on time payments to all of your accounts. Signing up for autopay is one great way to ensure you don’t miss a payment. But there are lots of other steps you can take to improve your credit score and give you a better chance at getting approved for a car loan:Review your credit report for errors or mistakes.Request higher credit limits on your accounts. This will decrease your credit utilization ratio and improve your score.Pay down accounts that have high credit utilization ratios (the ratio of debt you are in compared to available credit).Catch up on any past due accounts. Consider contacting a credit counselor if this feels too overwhelming. They can design a debt repayment plan that will work for your budget.Limit applying for new accounts. These can trigger hard inquiries which can lower your score.Building your credit score takes time, but it is definitely worth it. Having a good credit score will help you get approved for loans, get better interest rates, and help you get better insurance rates.You were denied because of an error in your application.Most of the time you can simply apply again, but be sure to double check that everything is correct the second time around.You were denied because you have a large amount of debt.If you have a large amount of debt you should definitely prioritize paying some off before you put yourself in even more debt. There are several ways to achieve this depending on your circumstances.You can use the avalanche method, which involves paying off your debts by order of interest rates. By paying off your highest interest rate debts first, you will help save yourself further costs in interest. This is one of the most popular (and quickest) ways to pay off debt.You can use the snowball method, which involves paying off your debts by size, starting with the smallest amount first. This is great for your morale and can keep you motivated to pay off your debts.But whatever method you use should start with a solid budget. Creating a budget is the best way to organize your finances and can help show you where you can cut costs and save money. Contacting a debt consolidation service can also help you to get organized and keep on top of your payments.You were denied because you don’t have a long credit history.This is a tricky one. There is no quick fix to getting approved if you do not have a long credit history. It can take you several years to build up your credit score. Getting a credit builder loan is a great step to take when getting started. Credit builder loans deposit money in a savings account, and once you pay off the balance the money is released to you. Your payments get reported to the credit bureaus and can give your credit score a good raise so long as you make full payments.Secured cards are another way to help build credit. These cards require you to deposit money in order to open an account. This is referred to as your security deposit. Paying the minimums on these accounts can help you establish credit.You can also consider applying for a car loan with a cosigner. When you apply with a cosigner they will take both of your credit histories into account. If your cosigner has a good score you will have a much better chance of being approved for a loan. Additionally, making payments on your new car loan will help you build credit. A cosigned loan is in your name and you are responsible for payments, but your cosigner will be responsible if you default.You can also apply for a joint loan, where you and your counterpart will share equal responsibility for the loan. Lenders will again consider both of your credit scores and histories when determining eligibility. Making payments will help you to build your credit, and you can finally get the car you’ve been wanting.While getting rejected for a car loan can be disheartening, there are ways to make sure it doesn’t happen again.If you already have a car loan but are looking to refinance, Auto Approve can help! Get your free quote today to find out how much you could be saving!GET A QUOTE IN 60 SECONDS

Maybe you’ve seen ads for Auto Approve and read the reviews, but you’re still unsure of how refinancing works through Auto Approve. Is Auto Approve a direct lender? If not, how do they fit into the refinancing process?Today we are here to answer the most common questions we get about Auto Approve, including how Auto Approve can help make the refinancing process as easy as possible.Here’s what you need to know about refinancing your car loan with Auto Approve.What are the benefits of refinancing?Car loan refinancing is when you replace your existing car loan with a new car loan that has better terms and conditions. When you refinance your car loan your new loan will pay off your old loan and you will be responsible for making payments to your new lender.There are a lot of benefits to refinancing your car loan, but the main reason is to save money.You can save money by finding a lower car loan APR.The primary reason people choose to refinance their car loan is to save money. When you refinance your car loan you can apply for a lower car loan APR, which you may qualify for for several reasons. If any of the following apply to you, there is a good chance you will find a lower car loan APR by refinancing:Your credit score has improved since you initially financed.The market rates have decreased since your initial financing.Your debt to income ratio has improved since your initial financing.You have a cosigner with a great credit score.An improved credit score will have the greatest effect on the car loan APR that you are offered. An improvement of ten or twenty points can add up to several hundreds of dollars in savings. If you are thinking about refinancing, be sure to work on improving your credit score before you apply.You can save money by shortening your repayment period.Even if you don’t qualify for a lower car loan APR, shortening your repayment period can add up to a lot in savings. Reducing your repayment period from 48 months to 36 months means that you will save on 12 months of interest payments.  You cannot simply amend your existing loan contract, so refinancing is a great way to shorten this period. If you can qualify for a lower car loan APR in conjunction with shortening your repayment, this can equal big savings.You can give yourself breathing room in your monthly budget by extending your repayment period.If you are currently having trouble making ends meet every month, refinancing your car loan and extending your car loan repayment period can significantly reduce your monthly payment. Lengthening your repayment period from 36 months to 48 months gives you another 12 months to stretch your payments, which can easily reduce your monthly payment by hundreds. It is important to note that you will pay more money in interest over the life of the loan, but this might easily be worth it if it's causing you to fall behind on all of your monthly payments (which can really hurt your credit score).You can add or remove a cosigner.If your original loan had a cosigner, the only way to remove the cosigner is to refinance your loan and not include them in the new loan. Perhaps your relationship with your cosigner ended, or maybe you just don’t want the financial tie to them anymore. Whatever the reason is, refinancing is the only way to go about removing a cosigner.If you want to add a cosigner to your loan you will also need to refinance. If your friend or loved one has a good credit score they can help you secure a better car loan APR. You may also choose to add a loved one onto your loan to help improve their credit score. Again, the only way to do this is to refinance your car loan.You can get out of a bad relationship with your current lender.You may also choose to refinance simply to get out of your relationship with your existing lender. If your current lender is not working for you (communication issues, recording discrepancies, etc) it may be a good idea to simply cut ties and start over with a new loan. Is Auto Approve a direct lender? How does the Auto Approve loan process work?Auto Approve is not a direct lender. Instead, we work to match you with the best car refinancing loan for you and your situation. We have relationships with lenders across the country and can help you shop around for the best rates and terms possible. Refinancing with Auto Approve is simple. You start by filling out our online quote form (you don’t even need to enter your social security number). We will review your basic information to determine whether or not you are eligible for a refinance. Eligibility will vary from lender to lender, but if your car is too old (ten years or older) or you do not have enough money or time left on your loan, we can quickly let you know that refinancing is not right for you.But if you are like most people out there, you are probably overpaying on your car loan and you are most likely eligible for refinancing. When we determine your eligibility, we will start shopping around to find the best rates and terms for you. You will work with one of our agents to gather all of the necessary documents for your applications. You will need the following information and documents:Driver’s licenseCurrent registrationProof of insurancePay stubs or other proof of incomeCurrent loan detailsWhen we compile all of this information we can help you fill out your applications and determine which lender is right for you. When you decide which loan offer to accept, we will help finalize the paperwork, ensure that your old loan gets paid off, and even help you with that pesky DMV paperwork. Once the final signatures are complete, you’re done! You will start making payments on your new loan, and when your loan is paid off your new lender will send you the title. While not a direct lender, Auto Approve serves a different but important role in your refinance. Think of us as your good friend who keeps an eye out for you (and your pocketbook).Why should you refinance your car loan with Auto Approve?We’ve been over the benefits of refinancing your car loan, but why should you use Auto Approve? Can’t you just refinance your loan with the same lender?While you can shop around for loans on your own (and even refinance with the same lender), using Auto Approve has a lot of benefits. We have unbeatable customer service.When you refinance with Auto Approve you can work with an agent (a real human agent!) who will give you the guidance and support that you need. But don’t 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 (based on over 6500 reviews!). Just look through some of the comments to see how much people love working with our agents. Trying to navigate auto refinance can be confusing if you do not have an advocate like Auto Approve on your side.We can find you the best rates.Refinancing car loans is our specialty, so we know how to get you the best rates possible. Again, just read through our reviews to see just how much money we save people (and how much lower we got their car loan APRs!) Our relationships with lenders make it easy for us to shop around to a wider audience and determine which lenders will be the best for you before we even start applying. And by helping you through the application process we can make it streamlined and easy.You can bundle a vehicle protection plan.When you refinance with Auto Approve you can easily add on a vehicle protection plan that can help when life becomes a little bumpy. When your factory warranty runs out a vehicle protection plan can step in and provide coverage against the wear and tears that come with, well, driving. Our vehicle protection plans allow you to choose your own mechanic, give you courtesy towing when you need it the most, and offer 24/7 roadside assistance. Bundling a vehicle protection plan to your new loan will give you peace of mind for years to come.And that’s what you need to know about refinancing with Auto Approve!Auto Approve is not a direct lender, but we can help pair you with the perfect direct lender for you. Our agents take the guesswork out of refinancing and act as your advocate so that refinancing is easy and pain free. If car loan refinancing sounds like it might be a good fit for you, get in touch with us today! GET A QUOTE IN 60 SECONDS

When your lease agreement comes to an end, you may be wondering what to do next. A very common option for many is to trade your lease in for a new car. But how should you decide what to do, and what do you need to know?Here’s everything you need to know about trading in your leased car.What is the best option at the end of a car lease?At the end of your car lease you have three options: trade in your lease for a new leased car, give up your lease entirely, or buy your leased car from the dealer. Trade in for a New LeaseMany people lease cars for the simple fact that they can get a new car every few years with no hassle. When your lease period ends you can give your leased car back to the dealership and select a new car, renegotiating the terms of your lease (such as mileage and lease period). This is a very popular option since you can get a brand new car and keep up with the latest upgrades and technology. Give up Your Leased CarSome people also decide to give up their lease entirely at the end of their lease period. Maybe leasing wasn’t right for them and they found it too restrictive, or maybe they no longer have a need for a car. Whatever the reason is, giving up your lease entirely is as easy as handing over the keys and signing some paperwork.Buy Your Leased CarAt the end of your lease period you may not want to give back your car at all. If you love the way your car drives and don’t want to lease anymore, you may decide to buy your leased car. Most leases allow for this and there will be a section in your lease contract that outlines the buyout process. The buyout price of your leased car will be predetermined and listed in your contract as the residual value.How does trade-in work with a lease?If you are interested in trading in your lease at the end of your lease period, it is quite simple. All you have to do is return your car to the original dealership. You can then select a new car to lease. You will be able to select a new car that may or may not be the same make and model as your previous lease. You will be able to restart your lease with new terms that you can negotiate, such as:Lease periodThe car’s market value (this number is used to determine monthly payments)Mileage allowanceAcquisition and other feesOther usage restrictionsWhen you get your new lease, you should review the residual value of the car and the money factor. While these are terms that you cannot necessarily negotiate, you should know whether or not they are fair before signing on the dotted line.Residual Value: The residual value listed in the contract is what your car’s value is estimated to be at the end of your lease period. It is essentially the car’s original market value minus the depreciation that occurs while you are driving the car. Money Factor: The money factor is similar to the interest rate on a loan. It is also referred to as a “lease fee”, “”lease factor”, and “lease money factor”. The depreciation on the car plus the money factor will determine your monthly payments. The money factor is expressed as a small decimal which you can multiply by 2400 to translate to an approximate APR. Before you sign your lease agreement you should be aware of what the prevailing money factor rates are so you can be sure you are getting a fair deal.If you are looking to trade in your car lease before the end of your lease term, it may be a little bit more complicated. You will be responsible for additional fees and may be responsible for the remaining monthly payments, depending on how your lease is worded.Is it worth buying car at end of lease?In today’s market it might be worth it for you to purchase your car at the end of your lease period. As we mentioned before, the residual value of your leased car is determined at the beginning of your car lease and cannot be changed based on the car’s actual value at the end of the car lease. Today’s used car market is still experiencing a high amount of demand, which means that used cars are worth much more than they were a few years ago.Even if you are not interested in keeping your leased car, you can most likely make a profit by purchasing your car lease and selling it privately. You should consider buying your leased car if any of the following apply to you:You really like your car and are not interested in getting a new oneYou are over the allotted mileage and will owe additional feesYou have significant wear and tear and will owe additional feesYour car’s current value is worth more than the residual value listed in your contractIf you do not have the money on hand to purchase your lease you can secure a car lease buyout loan. If you choose to keep your car you will have an asset at the end of your repayment period. If you choose to sell your car privately you can use the money from the sale to repay your loan and keep the difference as profit. Securing a car lease buyout loan is easy if you have relatively good credit and financial history. You can use a company that specializes in car lease buyout loans to make this process even easier. If you are interested in securing a car lease buyout loan, be sure to take the following steps to prepare:Ensure your credit is in good shape by reviewing your credit report for any errors.Make full and on time payments to your current lease.Resist the urge to open any new lines of credit.Research prevailing rates.Getting a free quote from Auto Approve can help jumpstart this process for you. That’s everything you need to know about trading in your leased car.If your lease is coming to an end and you want to purchase your car, consider applying for a car lease buyout loan with Auto Approve. Our agents can help answer any questions and help you navigate the loan application process.Don’t wait! Contact Auto Approve today to get started!GET A QUOTE IN 60 SECONDS

When you decide the time is right to buy a new car, it’s easy to get carried away. With so many makes, models, and exciting new features available today you can feel like a kid in a candy store. But there’s one factor that can jam the brakes pretty quickly on your big hopes and dreams: your budget.Keeping your budget in mind is incredibly important when deciding what car is right for you. But how do you know how much you can actually afford? Let’s talk about how much car you can afford (and how you can get the best deals possible!)How much car can I afford?When determining how much car you can afford you need to carefully consult your budget. That means all of your incoming money and all of your outgoing money. There is a general rule that you should not spend more than 20% of your monthly income on transportation expenses.That may sound pretty cut and dry, but that 20% of your income doesn’t mean that you can spend 20% on your car payment alone. That number includes:GasParkingMaintenanceInsuranceOther car related expensesWhile it’s hard to predict every expense, you should have a rough idea of how much gas you go through, how much your insurance will be, and whatever other expenses you may have. If you have a monthly income (take home income, not your salaried amount) that is $4,000, your monthly car expenses should not exceed $800. If you spend $100 on gas, $100 on insurance, and $100 on other expenses, your monthly car payment should not exceed $500.Your car payment will depend on three main factors:The price of the car. The less expensive your car is, the less your monthly payments will be. This price is dependent on the make, model, trim level, and other features you may want in your car. The car loan APR you are offered. The car loan APR you are offered will be based on your credit score, the market rates, and other factors.Your repayment period. The shorter your repayment period is, the higher your monthly payments will be. But this also means you will end up paying less in interest over the life of the loan.Before you go shopping for a new car you should have a good idea of what type of car payment you can afford. While you can negotiate on the price, the APR, and the repayment period, you want to be sure you do not get in over your head with a car payment that you cannot afford.What do lenders look for?Your car loan payments will depend largely on the type of financing you can secure. When applying for a car loan, lenders will look at the 5 c’s of credit. These characteristics help them decide how credit-worthy you are. The car loan APR that you are offered will be based in part on these factors. Together they paint a picture of how risky your loan is.CharacterYour character refers to your credit history and how well you have managed your debts previously. Lenders will look at your credit report to determine whether or not they think you are an eligible candidate for a loan with a good APR. The best thing you can do before applying for a car loan is work to improve your credit score.CapacityCapacity refers to your ability to repay the loan. Lenders look specifically at your debt to income ratio. You can calculate your debt to income ratio by adding up your monthly debt payments and dividing that by your pre tax income. Multiply that by 100 to get a percentage. Experts recommend that this number be below 36% for homeowners and below 20% for renters. This number tells lenders whether or not you have the means to repay the loan you want.CapitalCapital refers to the amount of money you will actually put down as an investment on your loan (a down payment). The larger your down payment is, the more favorable your terms will be.CollateralYour collateral is what you will lose should you fail to repay your loan. Your new car is the collateral for a new car loan. When there is collateral the loan is referred to as a secured loan, which is less risky for a bank than an unsecured loan. Secured loans tend to have more favorable terms.ConditionsConditions refer to any other factors that may affect your loan, such as the prevailing market rates.How do I find the best price for a car?If you know how much you can safely afford for a car payment every month, you can roughly estimate the market price of the type of car you can afford. But the lower you can get this number, the better off you will be every month when making your payments.When it’s time to buy a car, follow our steps below to ensure you get the best deal possible.Step 1. ResearchDoing your research is essential when it comes to buying a car. Not only do you need to figure out how much you can truly afford to spend every month, but you need to figure out what a fair price is for the car you are interested in. Checking Kelley Blue Book and Edmunds can give you an idea of what a fair price is for the car you are interested in.Step 2. Be FlexibleWhile we all have our dream cars and dream features, it’s important to be flexible when shopping around. This is especially important in today’s car market where there are shortages and increased price tags. Having an open mind will help you find a car you love for the right price. Step 3. Look for DealsLook high and low for any deals that might be out there. You should look around at a number of different dealers and compare pricing, and then compare those to online dealers. There are a lot of online dealers, including:AutotraderCars.comCarsDirectCarvanaEnterpriseTrueCarVroomIf nothing else, having other numbers for comparison can help you negotiate at a dealer.Step 4. Get Pre ApprovedGetting preapproved for your car loan before you even set foot in a dealership is a great idea. It will give you more leverage when you visit the dealership and will also help ensure that you stay within your budget. You can also shop around ahead of time for a reasonable rate, which is always a good idea.Step 5. Avoid the Add OnsIt is incredibly easy to get talked into add-ons and features that will drive up the price of your car significantly. Anti theft devices, window tinting, key protection, paint and fabric protection, all season floor mats, and wheel locks are just some of the features they may offer to you. While some of these may be worth it to you, keep in mind that they will increase your car’s total price by thousands of dollars. It’s a good idea to prioritize which features might actually be worth it to you, and which are less important. When you see the price tag you can determine if the extra money is worth it. Step 6. Negotiate What You CanWhen you are buying a car there are a number of places where you can negotiate to get the best terms possible. First, you should always negotiate the market price. If you can prove that you can find the car at a lower price elsewhere you will be more likely to get a good deal. You should always be willing to walk away from a bad deal, so don’t let your emotions get the best of you.Additionally you can negotiate any fees that might be tacked onto your car purchase. There are a number of added fees you may be expected to pay when you buy a car. These may include:Documentation feeAdvertising feeShipping feeDealer feeThese are easy places for the dealership to make a deal with you, so if nothing else be sure that they cut some of these extra fees.That’s how you can determine how much car you can afford (and how you can get the best deal possible).Buying a car is a big deal, but being prepared can help ensure that you get a good deal. Doing your research, getting preapproved, and negotiating your car’s price are just a few small steps that can save you thousands of dollars.If you are having trouble keeping up on your monthly payments for your car, refinancing can help you get your payments down to work within your budget. By refinancing to a lower car loan APR or changing your repayment period you can reduce your car loan payments by hundreds of dollars per month. Sound good to you? Get in touch with Auto Approve today to find out just how much you could be saving every month!GET A QUOTE IN 60 SECONDS

Few things can financially drown someone faster than credit card debt. And with today’s record inflation, it’s even easier to overextend yourself. A study from the Federal Reserve Bank of New York found that 15% more people were in credit card debt in the third quarter of 2022 compared to the third quarter of 2021. With the Fed’s December announcement that interest rates would be increasing again, this doesn’t show signs of slowing down. But getting out of credit card debt can happen. It isn’t an easy task, but there are a number of steps you can take to get out of your current financial woes.Here are four ways you can pay off credit card debt.Use the Avalanche MethodThe avalanche method is one of the most popular–and quickest–ways to get out of credit card debt.  You start by making a list of all of your debts and organize them by interest rates, with the highest rates on top and the lowest on the bottom. Every month you pay the minimum on all of your accounts, and put all of your extra money towards the top debt (the one with the highest APR). Once that debt is paid off, you allocate your extra money to the loan with the second highest APR. This method is widely used as it will save you the most amount of money in interest by prioritizing your debts in this way. This also means that you can pay off your debt in less time. Use the Snowball MethodAnother popular method for getting out of debt is called the snowball method. This method calls for you to list your debts and organize them by their size. The smallest amounts are at the top of the list, and the highest amounts are at the bottom of the list. Again, you will make the minimum payment on all accounts and then allocate all of your remaining money to the smallest debt at the top of the list). When that is paid off you move on to the next smallest debt, and so on and so forth. This is an excellent method for people who are motivated by small successes and can find extra motivation in paying off some of the easier debts first. It will not save you quite as much money as the avalanche method, but if you feel overwhelmed by the sheer volume of accounts you have, this may be a great motivator for you and relieve some of the added pressure.Create a Solid BudgetIt is incredibly difficult to pay off debt if you do not have a plan in place. A monthly budget is a great way to get a firm hold on your expenses and find where you can make adjustments to your financial way of life.Start your budget by creating a list of all of your expenses, both variable and invariable. Account for everything that you pay for over the course of one month. Variable costs may include:GroceriesElectric BillParking FeesDining OutEntertainment/ AttractionsHome Maintenance and RepairsFor these costs that change every month, try to calculate a few months totals and average them out. Your invariable costs do not change from month to month and can include:Rent or MortgageCar PaymentCable BillInsurance PremiumTrash CollectionInternetPhone BillProperty TaxesChildcare ExpensesStudent Loan PaymentsStreaming Services (Netflix, Hulu, Amazon, Etc)Now list all of your income in one month. Your paycheck (the take home total, not your salaried amount), rental incomes, dividends–anything that makes you money. Comparing your incoming with your outgoing will give you a sense of how healthy your budget is. Where are you overspending? Where can you cut back? Making changes to your monthly budget can result in a lot of extra cash in your pocket, and that’s cash that can be going directly to your credit card debt. Here are some of our favorite ways to save money on monthly expenses:Switch to generic groceries. Brand name groceries are significantly more expensive, so consider buying the store brand to save some extra money.Cut down your streaming services. Do you really need all of the services that you are signed up for? Think about canceling one or two (or splitting the cost with friends)Refinance your car loan. You can save a lot of money every month by refinancing to a lower car loan APR. You can also change your repayment period when you refinance, and lengthening your repayment period can lower your monthly payments significantly.Refinance your mortgage. If you own a home, refinancing your mortgage can cut down your monthly payments.Evaluate your insurance. Look at your car insurance policy and see if you qualify for any savings programs. Dropping to a different tier of coverage can also save you a significant amount of money every month.Cutting your expenses here and there can add up to a lot over the course of a month, and that can really help you get out of the debt you are in (and help you avoid getting into more debt).Consider ConsolidatingIf you have multiple lines of credit with high interest rates, debt consolidation may be your best bet to get out from under it. You can DIY your consolidation if you have good credit and qualify for a 0% APR balance transfer credit card. You can then use this card to pay off all of your other debts so that all of your debt is housed under one credit card. So long as you pay off this balance before the promotional 0% APR expires (typically 12-18 months), you will save yourself a lot of money.If your credit is less than stellar, a 0% APR balance transfer credit card is probably not in the cards. But there are other options. You can take out a home equity line of credit and transfer your debt there (so long as the APR is lower than your credit cards). You can also take out a debt consolidation loan designed for these situations. If you have multiple accounts that you struggle to keep up with, debt consolidation is an excellent option to save you money and make your life a little easier.That’s how you can get out of credit card debt in 2023.While it can feel overwhelming, credit card debt isn’t an uncommon situation. Makes 2023 the year of financial freedom by following our steps to getting out of credit card debt. Refinancing your car loan is a great way to free up some money every month, so call Auto Approve today to see how we can help you!GET A QUOTE IN 60 SECONDS

If money is tight every month but you need a new ride, you may be wondering which is better for you: leasing or financing. Deciding between leasing and financing will depend on a lot of factors, but a major factor is how much the monthly payments will be. Here we will discuss the difference between lease payments and finance payments and how you can decide what is right for you.Here’s the difference between lease payments and finance payments and how you can decide which option is right for you.What is the difference between a lease and finance?When you lease a car you are essentially renting the car from the dealership. You do not own the car, but you can use it for a set period of time. During that time you must obey the rules of the lease agreement. But it’s important to keep in mind that the dealership owns the car while you are using it, which is referred to as the lease term.When you finance a car you are buying the car from the dealership using a loan. The dealer sells the car to the bank, who will hold the title until you pay off your loan in total. While the title is held by the bank, you are considered the owner and can use the car however you would like.Are lease payments higher than financing?Lease payments are lower than financing payments because you do not own the car and are not making payments on the whole car. Instead you are making payments on the depreciation that occurs while you own the car. If your lease is for 36 months, you are paying for the depreciation that occurs in that time.Every lease will have a residual value listed. This is the expected value of the car at the time when your lease is over. The residual value is non-negotiable and is based on the car’s expected depreciation during the lease period. Since the dealer cannot control how the car is used exactly, they put parameters on your usage to help protect their asset and ensure that it will still have value at the end of the lease period. These parameters include: Mileage limitsFees for wear and tearTravel restrictions (typically cannot drive out of the United States to Canada or Mexico)No allowable customizationMust use OEM parts and licensed mechanics for all repairsStricter insurance requirementsAnd moreThe usage parameters will help ensure that the depreciation is predictable and that the car will still have value when the lease is over. In addition to the depreciation on the car, your lease payment will include a finance charge, which is essentially the cost of doing business. And, of course, tax. Total Monthly Lease Payment = Monthly Depreciation + Finance Charge + TaxFinance payments are more because you are paying on the total value of the car, not just the depreciation over a few years. Total Monthly Finance Payment = (Price of the Car - Down Payment + Total Interest on Loan)/ TermWhen you finance, the sales tax will be calculated upfront and rolled into the price of the car (unless you choose to pay it with your down payment). Financing a car will be much more expensive per month than leasing. But that doesn’t necessarily mean that leasing is a good thing (or a bad thing). It really just depends on your preferences and financial situation.Is it better to lease a car or to finance a car?The advantages of leasingThere are a lot of advantages to leasing a car. As we already went over, it is much cheaper to lease a car than to finance a new car. And you are often not required to put money down when you lease a car, which can be a huge factor for many. Leasing a car also allows you to get a new car every few years with no hassle. You don’t need to worry about getting rid of your old car; you can simply trade it in and get a new car when your lease term is over.If you are a business owner or are self employed, leasing a car also provides more tax benefits than financing does. Leasing a car allows you to write off both the depreciation costs and the financing costs, which is usually more than you can write off when you purchase a car.The advantages of financingLeasing can be great for many people, but there is one major disadvantage: you do not own anything when your lease period is over. Just like when you rent an apartment, your payments are not creating equity. You are paying to use something and you will have nothing to show for it when the lease period is over.Additionally, financing your car doesn’t come with the strings that leases come with. When you finance a car, you can treat it like your own (even though the title isn’t technically in your name yet). You do not need to worry about mileage limitations, restrictions on where you can drive, or what customizations you can make. Your car is yours to do as you please.Financing can also be easier to qualify for than leasing. If your credit is less than stellar, you may not be offered a great car loan APR, but you will most likely be able to find a lender that will work with you. This is not as true when it comes to leasing a car. If you do not have good credit, dealerships may simply refuse to lease a car to you.That’s the difference between lease payments and finance payments.Leasing a car can be a great option for many people. And the good news is that you can still buy your car if you end up changing your mind. Most leases will allow you to purchase your car at any point during the lease for the price of the residual value (plus any remaining payments you have). Today’s used car market is still booming, which means that the market value of many people’s cars is actually much higher than the residual values listed in their contracts. So even if you don’t love your car, chances are you can buy out your car lease and make a good profit on it.Auto Approve specializes in car lease buyout loans, making this process incredibly easy. So if you have a leased car that you just aren’t ready to part with (or that you want to make some money on!), contact Auto Approve today to get a free quote!GET A QUOTE IN 60 SECONDS