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The new year is almost here, and with that comes the opportunity to restart and refocus. It’s no surprise that one of the top resolutions for any new year is to get your finances in top shape. Today we are going over six new year’s resolutions that can get your finances working with you, not against you. Here are six new year’s resolutions that will get you fiscally fit in 2023.Resolution #1: Start a budgetIf you haven’t started a monthly budget yet, now is the perfect time. Monthly budgets are the best tool for getting a handle on your finances, as it allows you to see exactly how much you have coming in every month and how much you have going out. Looking at a budget allows you to precisely pinpoint where you might be spending a little too much and gives you an opportunity to amend. Budgeting is relatively easy, it just takes some time to get organized. Start by gathering your bills, statements, and pay stubs for the last year (or have them pulled up online). Then record the following:Your fixed expenses–rent, mortgage, car payment, cellphone–your expenses that are the same every month.Your variable expenses–groceries, electricity, entertainment–take an average of the past 12 months to get an average of these expenses that change from month to month (your credit card might even break down some of these categories for you)Your income–paychecks, dividends, and any miscellaneous income you have.Get all of that information into a spreadsheet and see how everything adds up and where you can stand to make some changes.Resolution #2: Improve your credit scoreYour credit score is an indicator of your financial health–for you and for your lenders. The better your score is, the easier your financial life will be. Having a good credit score can help you in many ways:You can get better rates on car insurance and homeowner’s insuranceYou can get a lower credit card interest rateYou can get higher credit card limitsYou will have an easier time qualifying for a mortgageYou will have an easier time renting an apartmentYou can get a lower car loan interest rateIt will look good to potential employers.Credit scores range from 850 to 300 and are broken down into five categories.800 to 850: Excellent credit740 to 799: Very good credit670 to 739: Good credit580 to 669: Fair credit300 to 579: Poor credit You will get the most benefits from having excellent or very good credit, and improving your score by even just a few points can help you score a better interest rate or push your credit limit higher. Credit scores are calculated based on your payment history, accounts owed, credit history length, credit mix, and new credit. Focusing on improving any of these areas can prove to be very beneficial for your financial health, but here are some of the most impactful ways to improve your credit score:Make full and on time paymentsRequest higher limits on your accountsHold off on opening new accounts unless necessaryPay down debts that have a high credit utilization firstResolution #3: Put more money into savingsSaving more money is always a top resolution for the new year. There are many ways to do this depending on what your goals are. Saving money goes hand in hand with creating (and sticking to) a budget, so consider doing this in tandem with resolution number one.Contribute more to your 401KDeposit a percentage of your paycheck into a savings accountLook for areas in your budget to cut, then put that money into savingsTry different savings appsConsider getting a credit card with cash rewards that you can put into savingsSmall changes can add up to big savings, so study your budget to see where you can cut costs. Resolution #4: Check your credit report more regularlyYour credit report is vitally important to your financial wellbeing, but most people do not regularly check it. This can be a huge problem, as you may not know if there is an issue until it is too late. You can check your report for free once per year from each of the three major credit agencies: TransUnion, Equifax, and Experian. You want to take advantage of this and check your report every four months. Credit reports contain the following information:A list of businesses and companies that have given you credit or loansThe total amount for each loan or credit limit for each credit cardYour payment history for each account, including the date and amount paidMissed or late paymentsA list of businesses and companies that have requested your reportYour personal information, including current and former names, addresses, and employersAny bankruptcies or other public record informationWhile this may seem like a lot to go over, keeping up on it every few months can make the task much more manageable. When you get a copy of your credit report, be sure to check for the followingThere is as accurate payment historyThere are accurate balancesThere are no unknown or unrecognized accountsAll of your personal information is correct, including your name and addressReport any errors to the agency as soon as you notice them. They will review within 30 days and can amend any issues. This can have a big effect on your credit score as well, so you don’t want to ignore this task. Resolution #5: Refinance any high interest loansIf you have any high interest loans, such as your mortgage or car payment, this may be the year to refinance those loans. When you refinance a loan, you are essentially starting over with a new loan that will have better terms, such as a better interest rate or repayment plan. This can save you a lot of money over the life of the loan, and/or can make your monthly payments much more manageable.If you refinance a car loan to a lower car loan APR you will save money every month in interest and save in total over the life of the loan. If you refinance to a shorter repayment plan, you will save money over the life of the loan by paying interest over less time. Your monthly payments will be higher by doing this however. You can also refinance to a longer repayment plan, which will reduce your monthly payments by a lot. By doing this you will pay more money over the life of the loan however since you will be paying interest over a longer period of time.Refinancing your car loan may make sense if any of the following apply to you:Your credit score has improved since you initially financed your car.The market rates have improved since you initially financed your carYour debt to income ratio has improved since you initially financed your car.You want to add or remove a cosigner from your loanYou need some breathing room with lower paymentsThe best news is that refinancing your car loan is super easy when you use a company that specializes in refinancing. Auto Approve experts can help guide you through the process and start saving money immediately (no need to wait for the new year!)Resolution #6: Start an emergency fundIt’s incredibly important to have an emergency fund. For most Americans an unexpected cost can really throw their finances for a loop, and you don’t want to get caught on the wrong end of a bill you can’t afford. Emergency funds can help protect you from the unexpected. How much you should have in your emergency fund depends on a lot of factors in your life, such as how many dependents you have, how much your monthly expenses are, and how in-demand your job may be. But you should aim to have at least a few months worth of expenses stashed away somewhere.A good way to start an emergency fund is to build it into your monthly budget. Treating your emergency fund as a bill that you have to pay will help you to constantly add to it and allow it to grow without too much effort. Start with $100, $50, or even just $25 a month–whatever you can afford really. Try to keep it in an account where you can build a little interest, but don’t lock your money away in an account where you will be fined to take it out. The point is to have the money easily accessible. Those are six financial resolutions that can help you get you fiscally fit.We hope these resolutions will inspire you to take charge of your finances in the new year. A little planning and good intention can help 2023 become your best year yet.If refinancing your car loan lands on your to do list for the new year, get in touch with Auto Approve today! Our experts are here and ready to help you save money with a brand new car loan. GET A QUOTE IN 60 SECONDS

When you lease a car you will have certain restrictions and requirements that you will have to adhere to, and one of those is the amount of insurance that you carry. Since you do not own your leased car, the dealership will require a certain amount of liability coverage to protect its asset. So just how much liability coverage do they require, and what are the other requirements of leasing a car?Let’s talk about how much insurance coverage you need to have when leasing a car.What are the requirements for insurance on a leased car?When you lease a car you are essentially renting the car from the dealership. There are pros and cons to leasing, but in general it is much cheaper to lease a car. This is because you are only making payments on the depreciation of the car while you are driving it, as opposed to making payments on the total value of the car.But because it is not your car, you don’t get to make all of the rules. Dealerships have a number of restrictions and rules set up to protect their asset, including:Mileage allowances. You cannot drive over a set amount of miles per year. This typically ranges from 10,000-15,000 miles.Replacement and repair requirements. You must use OEM parts and use a certified mechanic to make all repairs.No customization. You cannot add on anything to make your car your own, such as bumper stickers or tinted windows.No rideshares. If you are a driver for Uber, Lyft, or another rideshare company, you will not be able to use your leased car for work.No out of country trips. Most leases prohibit you from leaving the United States in a leased car.Insurance requirements. Dealerships will require a certain level of coverage on their leased car.These restrictions might be enough for some people to walk away from leasing. But for some these restrictions are far outweighed by the benefits of leasing. One of the biggest benefits is that leasing a car is much cheaper than financing a car. Increased insurance requirements however can tick the price upwards on the price of lease. But what are these requirements exactly?Leasing Company Insurance RequirementsLeasing companies will require you to have both collision coverage and comprehensive coverage on your leased car. Collision coverage: pays for damage when there is an accident with another vehicle or object.Comprehensive coverage: pays for damage caused by something outside of your control, such as theft or fire.Most lessors will require a higher bodily injury liability limit (typically $100,000 per person and $300,000 per accident). Lessors may also require property damage liability coverage (typically $50,000).State Minimum Insurance RequirementsThe state minimum insurance requirements vary from state to state but the requirements are the same whether you lease, finance, or own a car outright. You are typically required to have liability coverage including:Bodily injury liability: covers medical expenses for others when you are at fault.Property damage liability: covers damage to property when you are at fault.The Cost of Insurance While LeasingSo just how much more money will it cost you on your insurance when you lease a car as opposed to finance? That answer isn’t very cut and dry. Your insurance premiums will depend on:The coverage you selectYour driving historyYour claim historyYour annual mileageThe type of car you driveYour ageYour genderWhere you liveYour credit scoreWhile leasing will cost you more due to your increased coverage requirements, there are a lot of other factors that affect your insurance rates. But even with the increased cost of insurance due to leasing, you will most likely still pay much less per month when you lease instead of finance.Is it worth it to lease a car?How do you know if it’s worth it to lease a car? There are a lot of pros and cons that should be considered when trying to decide if leasing is right for you.The pros of leasingThe biggest advantage of leasing is that it is much more affordable than financing a new car. Car lease payments are calculated based on the depreciation that occurs while you are driving your car, and not on the total value of the car. In fact, lease payments tend to be 30-60% lower than financing payments.But in addition to affordability, leasing has other key advantages:You don’t have to worry about selling your car when your lease is over.You can get a new car every few yearsYour warranty will cover most repairs and some maintenance.You can maximize tax deductions.You can buy your car lease at any point if you change your mind.The cons of leasingWhile there are a lot of advantages to leasing, it’s certainly not for everyone. The disadvantages of leasing include:You do not build equity with your payments.You have a lot of restrictions (discussed above), and misuse of your car can lead to heavy fees.There are early termination fees if you wish to return the lease.What should I know before I lease a car?If you decide that leasing a car is right for you, you should do your research to ensure you are getting the best deal possible. Here are the top things you should know before you lease.What is the cost of the vehicle? Choosing a car that is less expensive will result in lower monthly payments AND lower insurance payments. Once you narrow down on the vehicle, be sure to shop around. The lower the MSRP of the car is, the lower the monthly payments will tend to be. You can actually negotiate on this when you decide to lease (this is called the capitalized cost in leasing terms). Your payments and residual value will be based on this number. Use sites like Kelley Blue Book and Edmunds to make sure you are getting a fair price.What are the taxes and fees?There will certainly be taxes and fees with your leased car. Taxes will be added onto your monthly payments, and sometimes the fees can be rolled into your monthly payments as well. At the start of the lease you will be required to pay a security deposit as well as an acquisition fee (which is essentially a fee of doing business).At the end of the lease you may be required to pay the following fees:Excessive wear and tear feesMileage overage feesDisposition fees What is the residual value of the vehicle?The residual value of the car is how much your car is expected to be worth at the end of the lease period. This is also the amount that you will pay (plus taxes and fees)  if you choose to buy your car lease. You cannot negotiate this as it is typically a standard rate per model.What are the use restrictions?Be sure you know exactly what the restrictions are, and know whether or not you can abide by them. Is the mileage limit too restrictive? Are the wear and tear fees too severe? Are the insurance requirements fair to you? Make sure you understand all of the fine print in your lease agreement.How much is due at signing?Know how much you are expected to put down at singing. Leasing a car is different from financing, and it is not advised to put a large amount down when you sign a lease. But the more you put down the less your monthly payments will be. Keep in mind that if you put a large amount down and something happens to your car, you won’t be able to get that money back.What are the end of lease requirements?When your lease is up, what are your options? What fees are you required to pay, and how much will it cost to purchase your car? Be sure you understand this part of your lease agreement. End of car lease buyouts are a great option in today’s auto market. Since residual fees are predetermined, chances are the current market value of your lease is higher than the residual value. This means that you can buy your car for a much lower price than it is worth. You can either buy your lease out and keep the car, or you can sell it and make a nice profit. Either way a car lease buyout loan from Auto Approve can help you with this. And once you buy your car lease, you can drop to whatever level of insurance you wish (so long as it meets your state’s minimum requirement.)That’s what you need to know about car leases and car lease company insurance requirements.If your lease is ending and you are thinking about buying your car, get in touch with Auto Approve today! It’s a great time to think about a car lease buyout, and our agents are ready to help you get started.GET A QUOTE IN 60 SECONDS

When you refinance a car loan you are replacing one loan with another loan. But where should you actually go to get a car loan refinance? The good news is that there are a lot of places that refinance car loans, but not all are created equally.Here’s where you can refinance a car loan (and why it’s a good idea).Why do people refinance auto loans?Car loan refinancing is popular for a number of reasons. By replacing your existing loan with a new loan you can get better terms and ultimately save yourself a lot of money.You can get a lower car loan APR.One of the main reasons people choose to refinance their cars is to get a lower car loan APR. You may be able to get a lower car loan APR if any of the following apply to you:Your credit score has improved since you initially financed.The market rates have decreased since you initially financed.Your debt-to-income ratio has improved.You have been making consistent payments on your current car loan.Getting a lower car loan APR can save you a lot of money over the life of a loan. It is highly recommended that you focus on improving your credit score as much as possible before you apply for car loan refinance. This will give you the best chance at getting a good rate. The best car loan APRs are reserved for those who have very good or excellent credit, with a credit score above 740. The higher the score, the better the rate will be that you are offered.Let’s say you have a $25,000 loan with a 9% car loan APR and a 4 year repayment period. Your monthly payments would be $622.13 and you would pay a total of $4,862.05 in interest.Now let’s say you refinance that loan to a 5% car loan APR. Now your monthly payments are $575.73 and you will pay a total of $2,635.15 in interest. That’s a huge savings.You can change your repayment period.Another huge benefit of refinancing your car loan is that you can change your repayment period. Lengthening your repayment period will allow you to pay off your principal over a longer period of time, making your monthly payments much lower. This can be a good option if you are struggling to make your monthly payments. It is important to note that you will end up spending more in interest over the life of the loan. Depending on how tight your monthly budget is, this might still be a good solution though.You can also choose to shorten your repayment period. This will increase your payments every month but will save you a lot of money in interest over the life of your loan. If you shorten your repayment period by one year, that is one whole year where you won’t have to pay interest.You can add or remove a cosigner.If you had a cosigner on your loan when you originally applied for car loan financing, the only way to remove your cosigner is to refinance. If on the other hand you want to add a cosigner, you will also need to refinance. Maybe your loved one has really good credit and they can score you a much better car loan APR, or maybe you want to add your child on to your loan to help them build credit. Either way, refinancing is the way to achieve this goal.Where can I go to refinance my car loan?If refinancing sounds like a good option for you, you may be wondering “where can I go to refinance my car loan?” Most lenders refinance car loans, including banks, credit unions, and online lenders. All of these can be good options. While dealerships offer refinancing as well, you will want to avoid refinance your car loan through a dealership. Dealerships essentially operate as middlemen between you and the lender, charging fees and adding onto the money you will have to pay.Traditional BanksRefinancing through a traditional bank is the most common way people refinance their loan. Traditional banks can offer pretty quick turnaround and you may qualify more easily if your credit score is less than ideal.Credit UnionsMany credit unions also offer car loan refinancing. While they tend to have more strict requirements, they tend to offer the most competitive refinancing rates.Online LendersOnline lenders are becoming increasingly popular options for car loan refinancing. Online lenders may be your best bet if you do not have the best credit, but their rates may not be as competitive as banks and credit unions.Car Refinancing SpecialistsThe easiest and most effective way to refinance your car loan is to use a company that specializes in refinancing. These companies have relationships with lenders across the country and can find you the most competitive rates on the market. They can also help guide you through the refinancing process and assist you with all applications and paperwork.Can I refinance a car at the same bank?You can usually refinance your car loan with the same bank that financed your original car loan. But it’s a much better idea to shop around to see what other lenders can offer. When you look for a new car loan, you want to compare the following when you apply:The interest rate. The interest rate will be based on your credit score, your debt-to-income ratio, and the prevailing market rates.The repayment period. Look at your cash flow to determine how much you can afford to pay each month. The prepayment penalties. It’s important to look at the prepayment penalties listed in each offer. There is no limit to the number of times you can refinance, so be sure that these aren’t too excessive. It’s good to have the option to refinance again in the future.The customer satisfaction ratings. You should always do some research ahead of time to determine what their customers have to say about the company. How is communication? Are they reputable lenders? Bad reviews are a definite sign to stay away and refinance elsewhere.And that’s where you can refinance your car loan (and why Auto Approve is your best bet for getting the most competitive terms).There are a lot of reasons why car loan refinancing is a good idea, and there are a lot of lenders that can help you refinance. But refinancing is the most effective when you have competitive offers, which is why using a company that specializes in car loan refinance can save you the most money.Get in touch with Auto Approve today to find out just how much money you can save!GET A QUOTE IN 60 SECONDS

Being in an upside down loan is less than ideal. It’s something no one ever anticipates, but it can happen to the best of us for a number of reasons. An upside down loan (also called an underwater loan) is when you owe more on your car than your car is worth. But just because you are underwater, all is not lost. There are a few steps you can take to swim to shore and get out of your situation. Here’s everything you need to know about upside down loans (and how you can get out of one).How do you get upside down on a loan?First up: how do you even get an upside down loan? When it comes to buying a car, it’s actually pretty easy to end up underwater.You financed with no money down.Dealerships are constantly running “deals” that feature financing with no money down. This is never a good idea. Cars depreciate quicker than almost every other asset, losing about 20% of their value in the first year alone. New cars lose 10% of their value simply by leaving the lot. So if you put no money down, you are immediately going to be in an upside down loan.Let’s look at an example. You decide to finance a $30,000 car with no down payment. This means that once you leave the lot, your car is only worth $27,000, and your loan is still for $30,000. Financing with no money down is the quickest way to get an upside down loan, and it will be hard to turn that around.You picked a long repayment period.Another easy way to end up in an upside down loan is to choose too long of a repayment period. The longer your repayment period is, the smaller your monthly payments will be. And this may seem great for your monthly bills, but this means that the depreciation on your car will outpace your monthly payments quickly and your loan will be upside down in no time.You didn’t do enough research.You can also get upside down in a loan by simply not doing enough research and paying too much for your car in the first place. If your car is really only worth $27,000 brand new and you paid $29,000 for it, there’s a good chance your loan will be upside down quickly.You bought a luxury car.Luxury cars tend to depreciate at a faster pace. Therefore if you are making minimum payments or have a longer repayment period, depreciation can very quickly get ahead of you.You bought a car that was out of your budget.Buying a car that is out of your budget in the first place can land you in an upside down loan. This means that you will have a hard time keeping up with your monthly payments, and you may end up upside down.You got a lot of unnecessary add on features.Nothing ticks up a new car price faster than add ons. And a lot of the time they do not truly add value to the car. You got a high interest loan.The higher your car loan APR is, the more money that is going to the bank and not to paying down the balance. Depreciation will quickly outpace low repayment with high interest loans.How do I know if I am in an upside down loan? Is being upside down on a loan bad?If you are wondering if you have an upside down loan, it’s pretty easy to figure out. Start by calling your lender and asking them for a payoff amount. This will include all of your remaining payments as well as any additional fees. Then compare this number to the market value of your car (you can check Edmunds or Kelley Blue Book to see what market value is). Then simply compare the two numbers. If the payoff amount is higher than the market value, you are in an upside down loan. If your payoff amount is lower than the market value, you are ok (but make a note of how close these numbers are to make sure you aren’t toeing the edge of an upside down loan).While it doesn’t sound good to owe more on your car than it is worth, is it really that bad? Not necessarily, but it does put you at a higher risk financially. Things happen unexpectedly, and if you need to get rid of your car, you will be in a less than ideal situation.Your car gets totaled.If your car is totaled your insurance will only pay out what the current value of your car is. So if you owe $20,000 on your car and insurance only pays you $15,000, you are left on the hook for $5,000.You need a different car.If for some reason you need to get rid of your car and get a new one, you will not really be able to get more than market value for your car (but you will still owe the bank on the total amount of the loan).You are unable to keep up on payments.If you are unable to keep up on your monthly payments (probably because the car was out of your budget in the first place), then you will need to sell your car to get a different one. But again, you will only be able to get the market value of your car and will need to continue making payments to your lender.What can I do with an upside down loan?Drive through the loanIf you don’t plan on needing a new car soon and you are able to comfortably make your monthly payments, you don’t necessarily need to do anything. You can simply drive through the loan, making consistent monthly payments and driving as normal. You will eventually pay off your car and it won’t be an issue.Make extra paymentsIf you are able to make extra payments every now and then, that will greatly help you catch up to your car’s true value. Extra payments will usually go towards the principal (not the interest) and can make a real difference.Refinance to a shorter repayment periodIf you are able to refinance your car loan to a shorter repayment period this can also help get you out of an upside down loan. This will help close the gap between depreciation and your loan’s value. Many lenders do not refinance loans that are upside down, but if you have good credit you may be able to secure a different loan.Get GAP insuranceGAP insurance (Guaranteed Asset Protection) is designed to cover the difference between what the car is actually worth and the amount that you owe on the car. In other words, if you total your car and owe $2,000 more than what your insurance will pay out, your GAP insurance will pay that difference. It’s another added cost but it might be worth it in the event of an emergency.What can I do to prevent an upside down loan?It’s best to avoid getting an upside down loan in the first place if you can help it. Here are some ways to keep your loan amount in check.Make a down payment.Down payments are always a good idea when it comes to buying a car. A down payment is arguably the best thing you can do to ensure depreciation doesn’t put you upside down immediately. Experts recommend a 20% down payment to put you in the best position.Pay your taxes and fees upfront.Many dealers will allow you to roll your taxes and fees into your car payments so that you can pay nothing (or next to nothing) upfront. Avoid doing this as it will just add more to your loan.Do your research.You should always do your research when making a large purchase like a car. You want to be sure of the following:You aren’t overpaying on the actual market value of the carThe car you are buying has a slow depreciation rateThe car payments will fit into your monthly budget (transportation costs should be less than 20% of your monthly budget–car payments, gas, parking, and insurance)Pick a repayment period that isn’t too long.A long repayment period means smaller payments. If the only way you can afford a car is to pay it off over six years, then you can’t afford the car. That’s everything you need to know about upside down car loans.While it’s best to avoid an upside down loan altogether, sometimes we end up in less than ideal situations. If you are unable to make extra payments on your loan, consider getting GAP insurance to help prepare against an emergency. If you’re not underwater but having trouble making payments, consider refinancing your car loan with Auto Approve. We can help save you money, time, and frustration! So don’t wait, contact Auto Approve today to get your free quote!GET A QUOTE IN 60 SECONDS

In the United States, 25% of people choose to lease their cars rather than financing them. While there are a lot of benefits to buying a car, car leasing is popular for a lot of reasons. Popular reasons for leasing include:Lower monthly paymentsLess cash required upfrontLower maintenance costsNew car every few yearsNo need to sell it when you want something newWhen your lease ends, you have three options. You can return your car and lease another one, you can return your lease and walk away entirely, or you can purchase your leased car from the dealership. So how do you know what the right choice is? If you are leasing a car, here are 5 signs that you should buy your car lease.Sign #1: You really like your car.It can be hard to find a car we love–one that drives well, looks nice, and is comfortable to be in. After spending two or three years in your lease, you may not be inclined to just give it back. So the good news is that most lease agreements will allow you to purchase your leased car for a specified amount.When you buy out your lease, your car will officially be yours. No more mileage allowances or restrictions on customization. You are free to do what you like. So if you really like your car, a lease buyout might be right for you.Sign #2: The residual value is lower than the market value.The buyout price of your car is based on the following factors:The residual value of your car, as listed in your contractAny remaining payments (you can buy your leased car at any point in your lease)Any applicable feesSales taxThe most important factor is the residual value. What is residual value on a car lease? It is the anticipated value of your car at the end of the lease period. The residual value is always determined ahead of time and cannot be negotiated, even if the residual value listed in the contract differs greatly from the actual market value of the car. Used cars are in high demand in this current auto market. High demand for new cars and a shortage in car production due to a variety of reasons has increased the demand for used cars as well. This means that used cars have a higher market value now than they have had in the past. So chances are your car’s residual value is much less than the market value. If you love your car, this means that you can buy it at a great price. If you don’t love your car, it means that you can buy it at a lower price and sell it for a profit. Either way, if your car’s residual value is less than the market value–which you can check on Kelley Blue Book or Edmunds–it’s a good idea to buy out your car lease.Sign #3: You’ve gone over your mileage allowance.Leasing a car is essentially renting a car from a dealership. Because you do not own it, they will put mileage restrictions to ensure that you are not overusing the car (and thus devaluing the car). These mileage restrictions are usually around 12,000 miles per year. For some people that is totally reasonable, and they won’t even come close to hitting that. But for others who have longer commutes or have longer trips that they make regularly, this mileage allowance isn’t nearly enough.Mileage fees vary greatly from dealer to dealer and from car model to car model. They can range from $.15 per mile to $.30 per mile that you go over the limit. And this can add up to a lot of money. With a $.25 mileage fee and 3000 extra miles per year over three years, this is over $2,000 in fees that you will have to pay the dealer.If you choose to buy your car lease you will not be responsible for the mileage fees. The $2,250 you owe can be put towards buying your car and getting equity. So don’t waste your money on fees, buy your lease out instead.Sign #4: You’ve gone way under your mileage allowance.The residual value of your car is based in part on how many miles it will have on it at the end of the lease period. Since you are paying for a set usage (let’s say 12,000 miles per year), if you don’t use that amount by the end of the lease, your car should be worth more than the listed residual value. Chances are your car will be worth more than you will pay for it, so it is a good investment to buy your leased car if you are significantly under the mileage allowance.Sign #5: You have excessive wear and tear. Again, leasing is renting. Dealers want to ensure that you aren’t going to damage the car that they are renting to you. To help curb this they will have different levels of wear and tear that are acceptable when you return your car.In general small scratches and dings are expected. But once they become larger and more prominent, these bumps and dings will start to add up. Excessive wear and tear can include:Large dentsCracks in glassStains on the upholsteryTears in the upholstery Poor-quality repairsWhen you return your lease they will do a thorough inspection of your car and determine if there is any excessive wear and tear. If there is, these fees can add up fast. Instead of spending money on fees to the dealership, you can spend that money on buying your leased car.Here’s how you can buy out your lease.If you’ve seen one or more of the above signs, a lease buyout may be a great option for you. And the best news? It’s super easy to buy out your car lease. Here are the steps for buying out your car lease.Review your lease agreement.Be sure to read your current lease agreement closely to determine if you are able to purchase your lease and how much you will need to pay for your lease buyout. If you are unsure, you can call the dealership to get a total cost. Your lease buyout price will be based on the residual value plus any additional fees.Make sure your credit is in top shape.If you know that you will need a loan to purchase your lease, make sure you are in the best position possible to do so. You will qualify for the best car loan APR by having a strong credit score. You can strengthen your credit score by doing the following in the months leading up to your car lease buyout loan applications:Make full and on time payments on all of your accountsRequest a copy of your credit report and review for errorsRequest higher limits on your credit accountsPay off debts that have a high credit utilization ratioHold off on opening any other new accountsA little boost to your credit score can result in much better car loan APRs, so it’s worth it to put in a little extra effort before applying.Determine how you will pay.If you are able to buy your car in cash, then this will be simple. But for most people, this will entail finding a car lease buyout loan. Finding a car lease buyout loan is easy when you use a company that specializes in buyout loans. If you are looking for a loan, you want to do your research and find the best lender for you. You should apply to 3-5 lenders and be sure to compare the following terms when the offers start coming in:Car loan APRRepayment periodCustomer service ratingsAdditional feesAuto Approve can help you navigate this process and find the car lease buyout loan that’s right for you.Finalize the details.When you find the best offer for you, it’s simply a matter of getting all of your paperwork in order. The title will be transferred from the dealer to the lender and you will need to check your state’s guidelines on what paperwork you need to complete at the DMV (although if you use Auto Approve for your car lease buyout loan they can handle this paperwork for you) And that’s it! Your leased car is now yours.That’s how you know a car lease buyout is right for you and how you can get the best car lease buyout loan.Leasing is a great option for many people, but sometimes it’s a good idea to buy your car lease. Whether you want to keep a car that you love, build equity, or simply sell it for a profit, a car lease buyout might be right for you. Contact Auto Approve today to discuss your car lease buyout loan today! GET A QUOTE IN 60 SECONDS

If you are looking to refinance your car loan, you may be wondering what the qualifications are. What do lenders look at–your car, your credit, your existing loan? Yes, yes, and yes. But let’s look at what specifically is important and what you can do to give yourself the best chance for a vehicle refinance.Here’s what lenders look at when you refinance your auto loan.What do they look at when you refinance a car?When you look to refinance a car loan, lenders look at three main factors: the vehicle you are refinancing, your credit score, and your existing loan. There are certain qualifications they look for in each category.Your VehicleTypically there are a few vehicle requirements when you want to refinance your car loan. They will vary from lender to lender, but generally your car should be:Less than ten years oldHave less than 100,000 miles on itBe worth more than the loan is for (your loan should not be “underwater”)If you are unsure if your vehicle qualifies for refinancing, our agents at Auto Approve can help you! You can also use our online quote form to get an answer quickly.Your FinancesYour credit score and financial history will have a huge effect on your ability to refinance your car loan. Lenders want to know that you are financially responsible and that you will be able to pay back your loan in full. Your Existing LoanLenders will also look at your existing loan when they are determining your eligibility for car loan refinance. Mainly they want to see if you are making full and consistent payments on your existing loan. They will also look to see how much time you have left on your loan. They will not want to refinance typically if you have less than a year on your loan.You should also take a close look yourself at your existing loan when determining if car loan refinance is right for you. Your existing loan may have prepayment penalties that can add up (and ultimately make refinancing less lucrative for you). Make sure that there is also enough time left on your loan to make refinancing worthwhile. The more time that is left on your loan, the more you can save with a car loan refinance. Do they check your credit when refinancing a car?As we mentioned before, your credit score is one of the most important things they check when deciding if you qualify for a car loan refinance. They want to make sure that you are able to repay the loan, and your credit score is the best indicator of that. Your credit score looks at five major factors in your financial history:Your payment historyYour amounts owedYour length of credit historyYour credit mixYour new creditAll of these factors indicate how likely you are to repay your loan. The higher your credit score is, the more likely you are to get a good car loan APR and get favorable terms. The best car loan APRs are reserved for those with good and excellent credit (with a score over 740). If your score is below 740, you can still qualify for car loan refinance, but your rate might not be as good.If you are interested in car loan refinance we recommend taking the following steps to get your credit score in top top shape before applying.Request a copy of your credit report and review it for any errorsCommit to making full and on time payments to all of your accountsPay down debts that have a high credit utilization ratioRequest higher limits on your accountsAsk to become an authorized user on a loved one’s accountHold off on opening any new accounts until after you refinanceHow do you refinance a car loan?Car loan refinance can help you in a lot of ways. It can save you money by lowering your car loan APR, it can give you breathing room by allowing you to stretch out your repayment plan over a longer period of time (thus making your payments smaller every month), and it can allow you to add or remove a cosigner. The biggest advantage of car loan refinancing is you can save a lot of money. Refinancing to a lower car loan APR can save you a lot of money over the life of the loan. Shortening your car loan repayment to a shorter timeframe can also save you a lot of money by reducing the overall amount of time you are paying interest.If car loan refinancing sounds like a good idea for you, it’s super easy to get started!Step 1: Gather all of your information.Get all the information you may need in one spot. This will include the following:Your information (your ID, social security number, and proof of residence)Your car’s information (the make, model, year, VIN, and mileage)Proof of income (such as recent pay stubs) Proof of insuranceLoan information (all of your existing loan information including the balance and the lender’s contact information)Step 2: Look for lenders and applyYou should aim to apply to 3-5 lenders for your car loan refinance. Look into traditional banks, credit unions, and online lenders. Do some research to find out how happy other customers are (using a company that specializes in car loan refinance can make this process very easy). Once you have narrowed your list down you should apply to all leaders at once so that it will only count as one hit on your credit score. Credit bureaus know that people need to shop around so they give people a two week window where all applications will count as one hard inquiry on your account.Step 3: Choose the best lenderWhen the offers roll in you will have to decide which loan is the best for you. Be sure to compare the following:The interest rate. The prepayment penalties. (There is no limit to the amount of times that you can refinance, so keep in mind that you might want to refinance again in the future)Your cash flow and the repayment terms. Customer satisfaction. Hidden fees. When you have compared all of the offers, you can simply sign and start saving. It’s just that easy!That’s what companies look for when deciding if they will refinance your car loan.Car loan refinancing can save you a lot of money. So don’t wait! The sooner you refinance, the more money you stand to save. Get in touch with Auto Approve today to find out just how much refinancing can save you!GET A QUOTE IN 60 SECONDS

If you have a leased car (or are thinking about leasing), you have probably seen the term residual value a few times. But what exactly is residual value, and what does it mean for you?Let’s talk about how car leases work and what residual value is.How do car leases work?Leasing a car is essentially renting a car. The dealership owns the car and holds the title, but they give you temporary ownership for a set period of time. While you have the car you are responsible for maintaining it and not overusing it (a mileage allowance will ensure this). Leases are usually 24-36 months, but they can be longer. While many people in the United States prefer buying cars, more than a few prefer leasing a car instead. In 2022, about one in four cars on the road in the US are leased. So why exactly would some people prefer leasing over buying?Your monthly payments will be lowerWhen you lease a car, your payments will be much lower than if you were to finance it. This is because you are really making payments on the depreciation that will occur while you are leasing the car, not on the total amount of the car.You need less money up frontNot only will your monthly payments be lower, but when you lease a car you will need less money up front. In many cases you can lease a car with no money down. Any fees that you are required to pay can usually be rolled into your monthly payments. You will not need to sell your car afterwardsWhen you lease a car, you can simply hand the keys back at the end of your lease period. You do not need to worry about selling the car when you are finished.You can get a new car every couple of yearsSome people love having the latest and the greatest, and leasing can allow you to get a new car every few years. This makes it easier to stay up to date with the latest technology (and who doesn’t love the smell of a new car?)You can maximize tax deductionsIf you are a business owner or are self employed, leasing a car will provide more tax advantages than buying a car. When you lease you can write off both the depreciation costs and the financing costs, which is usually more than you can write off when you purchase a car.What is Residual Value?There are a lot of terms that you should be familiar with when you decide to lease a car. Lease payments are calculated as follows: Capitalized Cost - Capitalized Cost Reductions - Residual Value + Interest + FeesLet’s take a look at what these terms mean. Capitalized CostThis is the actual price of the car which will serve as the basis for all of your lease payment calculations. This price can be negotiated, just as you would negotiate if you were buying the car outright.Capitalized Cost ReductionsCapitalized cost reductions are any discounts that the dealership may apply to your lease. This includes any rebates, incentives, and upfront capital that you may put into your leased vehicle.Residual ValueThe residual value of a leased car is the expected value at the end of the lease term. Money FactorThe money factor is the financing charge of the lease. This number is a small decimal that might feel foreign to most people, so multiplying it by 2400 can give you an equivalent APR.How is Residual Value Calculated?One of the most important factors in your lease is the residual value of the car. The residual value of your leased car is based on three factors:The capitalized costThe lease termThe residual lease value percentageThe capitalized cost of the car is simply the sale price of the car. Your lease term will depend on what you select, but it is typically 24-36 months. The residual lease value percentage is somewhat subjective. It is what the car is expected to depreciate over the life of the lease.If you have a leased car with a capitalized cost of $30,000, and the car is expected to decrease in value by 50% over your three year lease, then the residual value of your car is $15,000. The residual value of your lease is important for two main reasons:It will determine what the monthly payments on your leased car will beIt will determine what the buyout price of your car will be at the end of the lease termUnfortunately you are usually not able to negotiate the residual value of your car. It is typically a standard price based on what the dealer believes the resale will entail. But you can negotiate on the capitalized cost of your lease. Should I Buy My Leased Car?When your lease ends, you might be wondering what options you have. You ultimately have three choices when your lease ends. You can keep leasingIf you like leasing, you may simply want to continue leasing a car. You can simply return your current car and resign for a new lease with a new car. This is the simplest option for most people and iit is also the best option for most dealerships. When you keep leasing, you will restart (and negotiate) with a new car, and the dealer can sell your old lease as a certified pre-owned car. In order to return your car with no fees or issues, you will need to return your leased car in good condition and without going over your mileage allowance. If there is significant wear and tear, noticeable damages, or you have gone over your mileage allotment, this could mean you owe the dealership money. You can end your lease and walk awayIf you aren’t happy with leasing, you can also choose to turn in your lease and not lease again. Again, in order to return your car with no fees or issues, you will need to return your leased car in good condition and without going over your mileage allowance. If there is significant wear and tear, noticeable damages, or you have gone over your mileage allotment, this could mean you owe the dealership money. You can buy your lease outBut maybe you don’t want to say goodbye to your car. Or maybe you know that you have racked up a lot of miles (way over your allotment) and you are going to owe some serious fees. Or maybe you know that there is quite a bit of wear and tear and you will similarly face some big fees. Whatever your reason is, a lease buyout is often a great solution at the end of your lease. How to decide which is best for youIf you are trying to decide what is the best option for you at the end of lease, there are some questions you can ask yourself to help decide.  To decide if you want to keep leasing, ask yourself the following: Do I like leasing?Have I been able to stay under the mileage allowance?Have I been able to avoid major wear and tear?Do I like having a new car?Am I ok not being able to customize the car to make it my own? If you answer yes to most of the above questions, then leasing again might be a good move. To decide if giving up your lease and moving on is a good idea, ask yourself the following questions: Do I dislike leasing?Is it hard staying in the confines of the lease agreement?Am I indifferent when it comes to having a new car?Do I have another way of getting around (a different car or a public mode of transportation?) If you answer yes to most of these questions, then returning your lease and moving on might be a good idea for you. But for many people, a lease buyout will be their best option. This is because today’s used car market has a lot of demand. That means your car’s resale value is almost guaranteed to be much higher than your residual value. In other words, you will be able to buy your lease for much less than you will be able to sell it for. Ask yourself the following questions to decide if a lease buyout is right for you. Do I like my car and want to keep it?Do I want to sell my car privately and make a profit?Have I gone over my mileage allowance that will result in major fees?Do I have significant wear and tear that will result in major fees? If the answer is yes to any of the above questions, a lease buyout is probably the best option for you. And a lease buyout loan is an easy way to achieve this.That's how car leases work and how you can decide if buying out your car lease is a good idea. Auto Approve specializes in car lease buyout loans and can help you decide if a lease buyout is right for you. Contact Auto Approve today to chat with one of our agents today! GET A QUOTE IN 60 SECONDS

Car loan refinancing can help you save a lot of money. By refinancing your existing loan you can get a lower car loan APR and change your repayment period. But when you choose to refinance, will it affect your credit score? Here’s what happens to your credit score when you refinance a car.How are credit scores calculated?Credit scores are three digit numbers that are designed to tell lenders how likely you are to repay your debts. They indicate how financially stable you are. FICO credit scores are the most popularly cited scores, but FICO is merely a type of credit score model (FICO stands for Fair Isaac Corporation, the company that helped pioneer credit scoring). Most agencies use either a FICO model or a variation of it for credit score calculations.Credit scores take a look at five major categories in your finances. Each category is weighed differently, but each part is important to ensuring that your score is as healthy as possible. Credit scores are calculated by looking at monthly reports that are sent to the three major credit bureaus (Equifax, Experian and TransUnion). Many different organizations send reports to the bureaus, including:Mortgage lendersAuto loan lendersCredit card companiesPersonal loan lenders Medical billing collection agenciesUtility companies typically do not send reports, but missing utility payments can result in reports to a collections agency (which will be reported). The credit bureaus take all of these reports and break the information down into the following categories. Your Payment History (35%)Your payment history is the most important factor in your credit score, accounting for 35% of your total score. Do you pay your accounts on time and in full, or do you miss payments? If you have had a missed or late payment, its affect on your score will depend on:The amount you’ve missedHow recently you’ve missed a paymentHow frequently you’ve missed paymentsEnsuring that you make consistent, full, and on time payments will have the greatest positive effect on your credit score.Your Amounts Owed (30%)This is the second most important category for your credit score, accounting for 30% of your credit score. The amounts owed category looks at how much money you owe, how much money you have available to you, and the number and types of accounts you have. The most important factor in this is your credit utilization ratio, which is a ratio of how much money you owe compared to how much money you have available to you. This looks at individual accounts as well as your total debt and total line of credit. Your ratio should be less than 30% for each account as well as your overall amounts owed.Your Length of Credit History (15%)The length of your credit history makes up 15% of your credit score. This category looks at how long your accounts have been open and active. How long have you had your accounts open and how long has it been since you’ve used certain accounts? The longer you have a history of having open accounts, consistently using them, and consistently paying them, the higher your score will be.Your Credit Mix (10%)Your credit mix accounts for 10% of your credit score. Your credit mix looks at how diverse your credit accounts are. Lenders like to see that you can manage payments for a number of different accounts. Healthy mixes typically include installment loans, mortgages, car loans, credit cards and retail credit cards. The better the mix, the better your score will be.New Credit (10%)Your new credit counts for 10% of your credit score. This category looks at how many new accounts you have. If you have new accounts that you haven’t proven that you can consistently pay, it will count against you. New accounts are like unanswered questions to credit bureaus.Does refinancing a car hurt your credit?When you refinance a car it will affect two categories in your credit score: your length of credit history and your new credit. Because it will be a new loan, it will shorten your length of credit history, which can cause a minor dip in your score. It will also be a new credit on your account, so your score will lower because it's new. Refinancing your car means that you will also have hard inquiries on your account. Hard inquiries will also cause a dip in your score, typically between five and ten points. It is temporary however, and they usually wear off in about six months. So, does refinancing a car loan hurt your credit? The answer is yes and no. While it will affect these parts of your score, it can also help your credit score greatly by saving you money and making your payments more manageable.Refinancing saves you money so you can pay off more debtIf you are able to refinance your car loan to a lower car loan APR, you can save a lot of money over the course of your loan. And those savings can be used to pay down other debts you have. These payments can lower your credit utilization ratio, which can significantly improve your credit score.Refinancing can help you make more consistent paymentsIf you are having trouble keeping up on your monthly payments, refinancing can help you by lengthening your repayment plan. When you lengthen your repayment plan you have more time to pay off your loan, which significantly lowers your payments. If you can stay more consistent on your payments you will increase your score a good deal.What is a good credit score to refinance a car?Credit scores are broken down into five categories: Exceptional (Super Prime): 800-850Very good (Prime): 740-799Good (Near Prime): 670-739Fair (Subprime): 580-669Very poor (Deep Subprime): 300-579The better your credit score is, the better car loan APR you will be offered. The best car loan refinance rates are offered to those with very good and exceptional credit scores. But that doesn’t mean that you will be unable to refinance if your score isn’t quite that high.If your credit score is better than it was when you originally financed and/or the market rates are better than when you initially financed, there’s a good chance you will be able to qualify for a better car loan APR.That being said, it’s best to work on your score to get it in the best shape possible before you start the refinancing process. Work on making consistent, on time paymentsIf you have a habit of making late payments, try to fix this as soon as possible. Sign up for autopay on your bills if possible to ensure you don’t miss a bill and look for ways to keep up on full payments. Are there areas of your budget where you can make sacrifices to save a bit of money? Canceling unused or unnecessary subscriptions and switching to generic brands are just a few ways you can free up some extra money and ensure you are making full payments on all of your accounts.Request higher credit limitsContact your credit card companies and ask for higher credit limits. This will automatically give a boost to your credit score by reducing your credit utilization ratio.Avoid opening new lines of creditAny new accounts that you open at this time will adversely affect your credit score, so try to resist opening anything new until after you refinance your car loan.Ask to be an authorized user on a loved one’s accountIf you have a friend or family member with a great credit score, becoming an authorized user on one of their accounts can give your credit score a boost. Their on time payments and low credit utilization ratio can help to give yours a boost.Request a copy of your credit reportIt’s a good idea to request a copy of your credit report at least once per year to ensure that there aren’t any mistakes or errors. A missed payment marked in error can have a significant effect on your score, so it’s good to regularly review your report and make sure everything is accurate.When you decide to refinance your car, be sure to apply to all lenders in the same two week time frame. Credit bureaus know that people need to apply to different places in order to compare, so they give a two week window where all hard inquiries will count as one inquiry (and therefore only affect your credit score once.Refinancing a car loan can cause a slight dip in your credit score, but it can also help your score in the long run.Refinancing your car loan is super easy when you use a company that specializes in car loan refinance, like Auto Approve. So what are you waiting for? Get in touch with Auto Approve today to see how much money you could be saving!GET A QUOTE IN 60 SECONDS

Having a small business can be incredibly difficult at times. From juggling all of the day to day responsibilities to worrying about profits, it can be overwhelming. But one huge advantage of owning your own business is that you can lease a car through your business. Here’s your how-to guide on leasing a car through your business.What are the advantages of leasing a car?Leasing a car isn’t for everyone; some people prefer buying a car so that they can customize it, drive it on their terms, and ultimately have an asset at the end of their payments. But leasing has some distinct advantages that work better for some people.The monthly payments are lowerWhen you lease a car, the payments will be much lower than if you choose to buy a car and finance it. In fact, car leases are typically between 30-60% less than financing payments.You can drive the latest carA lease period is typically only a few years, so you can get the newest car when your lease period is over. If you like to have the newest cars and technology, leasing is likely a good fit for you.You generally don’t have to pay for repairsLease periods typically line up with warranties, so you generally do not have to pay for most repairs.You need less money up frontWhen you lease a car, you are not usually required to make a down payment. Additionally, any fees that may be required up front can be rolled into your monthly payments. This means you don’t need a lot of money to get a lease.No need to sell your used carWhen your lease is over, you can simply hand the keys back over to the dealership. You don’t need to deal with the hassle of selling your used car (which can be a real pain sometimes).You can write off your lease paymentsOne of the biggest advantages to leasing is that you can write off your lease payments if you are a business owner (or self employed) and use the car for business purposes. Even if you do not own your own business, you may be able to write off part of your lease as a usage credit depending on what state you live in.How to lease a car through your businessIf you are looking to lease your car through your company, you will need to find a dealer that handles commercial leases. That doesn’t mean that you will need to get a commercial style vehicle, but it means that they have different programs and financing options. Select your carDetermine what car works best for you and your business. Is a simple passenger vehicle sufficient? Do you need cargo room for heavy hauling? Determine what type of car will work best for you and your business.Determine if you should lease or buyAs a business owner you are also eligible to write off car payments, but they will be significantly more than a lease payment will be. The answer will depend on what type of business you have and what your business finances are like. If you buy a car, you have an asset at the end which can be a good thing. But the higher payments may not make it worth it. Evaluate which option is better for your situation.Bring your business’s financial documentsYou will need to prove that your business is capable of making payments on the lease. They will want to see cash flow, revenue, and debts, all of which will affect your ability to repay the lease. You want to bring anything that will help to prove that your business is financially stable and that you will not have an issue paying for your monthly lease.Be prepared to guarantee the loanIf the bank does not feel that your business is in good enough standing to warrant a lease, they may require you to guarantee the lease personally. This means that if anything should happen, you will be responsible to make payments on the lease and your personal credit is on the line. Be sure you are comfortable taking on this responsibility.Iron out the details and negotiateWhen you are approved for the lease, be sure that you are comfortable with all of the fine print. Fees, mileage limits, the lease term–be sure that everything is correct. And that’s it! Once the papers are signed, the lease is yours.How to write off a car lease for your business in 2023If you are eligible to lease your car through your business, it can save you a lot of money in taxes. But even if you lease your car through your personal finances, you can still benefit from write offs. You can determine your “business portion”–the portion of your lease that’s eligible to be written off–by determining how many miles you drove for personal use and how many miles you drove for business use. If you drove 10,000 miles on your lease, and 4,000 of those miles were for work and the rest were personal, your business portion would be 40%. When you write off these expenses, there are two ways you can do so.Use the actual expensesYour first option is to use the actual expenses to determine your write off amount. You are eligible to write off any costs that are related to driving, such as:Your lease paymentFuelInsuranceRepairsIf your total cost for the year was $12,000, you would calculate what your business portion of those costs would be (i.e. $12,000 x 40% = $4800) and that is the amount you can write off on your taxes.Use the standard mileage deductionAlternatively you can choose to write off per mile. The IRS has a set number that you can write off per mile (in 2022 it was $0.585 per mile for the first six months, then $0.625 per mile for the rest of the year). You can determine how many miles you drove that year, multiply it by the standard deduction, and then multiply that by your business portion. That’s everything you need to know about leasing a car through your business.Leasing a car can be a great option for many people, especially business owners and those who are self employed. And if you love your car by the end of the lease, you can always purchase your car with a car lease buyout loan. Auto Approve specializes in car lease buyout loans, so we can help you (and your business) stay in the driver’s seat.GET A QUOTE IN 60 SECONDS

When you refinance your car loan, you essentially restart your car loan with new terms and a new car loan APR. And this can translate to a lot of money in savings. But just how much can auto refinancing save you, and how do you decide the time is right?Here’s how much money you can save by refinancing your car loan.Does refinancing a car loan save you money?Refinancing to a lower car loan APR saves you moneyThe biggest way that you can save money is by refinancing your car loan to a lower car loan APR. You may qualify for a lower car loan APR if any of the following apply to you:The market rates have decreased since you initially financed your car.Your credit score has improved since you initially financed your car.Your debt to income ratio has improved since you initially financed your car.You are adding a cosigner to your car loan who has a good credit score.Your credit score is the biggest factor that lenders consider when they are determining what car loan APR to offer you. Credit scores are designed to tell lenders how much of a credit risk you are. The higher your credit score is, the more likely you are to repay your loan (at least in the eye of the lender). So while you do not have control over the market rates, you do have control over your personal finances and your credit score. Your credit score is determined by looking at the following categories of your finances:Payment history (35%)Amounts owed (30%)Length of credit history (15%)Credit mix (10%)New credit (10%)Your payment history and accounts owed are the two most influential sections of your credit score. Therefore paying attention to these categories will help you increase your score the most. If you are interested in refinancing, it is a good idea to ensure your credit score is in top shape before applying for refinance. Commit to making full, consistent, on time payments to all of your lenders, pay off accounts with a high credit utilization ratio, request higher limits on your accounts, avoid opening new lines of credit, and review your credit report for any errors. All of these steps can help improve your score, which will lead to a better car loan APR when refinancing a car.But just how much money can you save with an auto refinance? Let’s look at an example. You initially financed $25,000 with an 8% car loan APR to be repaid over 5 years. Your monthly payments are $506.91. Over the course of five years you will pay $5,414.59 in interest alone. But let’s say you improve your credit score and you are able to refinance your car loan to 5%. Now your monthly payments are $471.78 and you will pay a total of $3,306.85 over the life of your loan. That’s over $2,000 in savings. And who couldn’t use that kind of extra cash?Refinancing to a shorter repayment period saves you moneyWhen you refinance your car loan, you can change the repayment period. You can either lengthen the repayment period or shorten it, depending on your financial needs. If you want to save money in the long run, shortening your repayment period will mean that you will pay less in total interest over the life of the loan, but your monthly payments will ultimately be higher.Let’s look at the same example from above. You initially financed $25,000 with an 8% car loan APR to be repaid over 5 years. Your monthly payments are $506.91. Over the course of five years you will pay $5,414.59 in interest alone. But if you were to refinance to a loan period of 4 years instead of five years, your monthly payments would rise to $610.32. With one less year of interest payments, you would only pay $4,295.51 in interest. That’s a savings of over $1100, even if you don’t qualify for a lower car loan APR. If you qualify for a lower car loan APR on top of that, the savings add up even more.Refinancing to a longer repayment period saves you money on monthly paymentsIf you are having trouble making your car payments every month, lengthening your repayment period can significantly reduce your monthly payments and give you a lot more breathing room every month. Let’s consider the above example in reverse. If you initially had a $20,000 loan with 8% APR over 48 months and refinanced to 60 months, your monthly payments would reduce by over $100. While you would end up paying more in the long run, you would give yourself a lot of breathing room every month. By making your payments more manageable, you would give yourself more money to pay other bills and pay down other debts, which can ultimately improve your credit score.What do I need to refinance my car loan?Refinancing your car loan is easy and doesn’t require too much. The first step is to see if you qualify for a car loan refinancing. Requirements will vary from lender to lender, and eligibility typically depends on:How old your car isHow many miles your car has on itHow much money is left on your loan There may be other factors at play, but generally the older your car is and the less it is worth, the harder it will be to refinance your car loan. If your car is ten years or older or has over 100,000 miles you may not be able to refinance. Also if you do not have a lot of time left on your loan, lenders might not feel it is worthwhile for them to refinance your loan. Auto Approve can help you determine whether or not you are eligible for refinancing. If you are eligible, you want to shop around with different lenders and compare before applying. You won’t have specific terms and rates to compare, but you can look at customer satisfaction ratings and reviews to get a sense of what each company is like. You can refinance a car loan with a traditional bank, a credit union, or an online lender. You will want to apply to 3-5 lenders so that you can compare and get the best terms. (Be sure to apply to all of them in a fourteen day window so that they all count as one hit on your credit report.)The following documents are typically required when you refinance a vehicle.A Photo ID, such as a passport or driver’s license.Your vehicle’s information, which may include the bill of sale, VIN number, make, model, and year of your car.Proof of income and financial history, which may include pay stubs, banking information, and your credit report.  Proof of residence, such as a mortgage statement, lease agreement, or utility bill. Note that PO boxes are not acceptable as proof of residence.Proof of insurance.While you can apply for car loan refinancing on your own, it’s much easier to use a company that specializes in car loan refinance. They will have preexisting relationships with lenders that can result in the best deals. And since they specialize in refinance, they are more than ready to help answer any questions or issues you may have.When should you refinance a car loan?So how do you know if the time is right to refinance your car loan? While you can refinance your car loan at any time, it is more beneficial to do so at certain times. The time is right to refinance if:Your credit score has increasedMarket rates have decreasedYour debt to income ratio has improvedYou have had your existing loan for at least six monthsYou have more than two years left on your existing loanYou want to add or remove a cosignerIf some (or all) of these conditions apply to you, the time might be right to refinance. You can refinance before six months, but waiting six months to a year will give your credit score a chance to rebound from your last financing inquiry. It will also give you a chance to establish a good payment history, both of which will help you secure a better car loan APR. New lenders will appreciate seeing your on time payments to your existing car loan.The time might not be right to refinance a car if:Your credit score has decreasedMarket rates have increased significantlyYour debt to income ratio has gotten worseYour loan is brand newYour loan period is almost over.If you are wondering if the time is right, contact Auto Approve to speak with one of our agents.And that’s how much money you can save by refinancing your car loan.So if you are asking yourself “why do people refinance auto loans?” the answer is simple–it can save people a lot of money. Contact Auto Approve today to see just how much money you can save!GET A QUOTE IN 60 SECONDS