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Refinancing a car is a bit of a game when it comes to timing. You get the most bang for your buck when the stars align, but if it’s not meant to be it can be a waste of time. So how do you know when the time is right to refinance, and when the time is not right?Let’s talk about when you should refinance your car and when you should wait.When should you refinance a car loan?Why refinance? Car loan refinancing has a lot of benefits, but the biggest benefit is that it can save you money. But in order to save money, the timing must be right. Here are a few signs that you might benefit from car loan refinance.Your credit score has improved.Your credit score is the number one thing lenders look at when determining your eligibility for a car loan refinance. It will also help them to determine what interest rate you should be offered. Credit scores give lenders a good indication of how likely you are to repay a loan. A high credit score tells lenders that:You make on time paymentsYou are not in too much debt You can manage making payments across multiple varying accountsThe better your score is, the better the interest rate you are offered will be. If your credit score was so-so when you initially financed, the interest rate that you were offered might not be ideal. But if you have worked to improve your credit there is a good chance you will qualify for a better interest rate. There are many reasons why your credit score may have improved in the past few years:You made full and on time payments to your accountsYou paid off some debtYour debt to income ratio improved (either due to decreased debt or increased income)A negative event expired (such as a bankruptcy)You have a better mix of creditIf you are considering car loan refinance, it’s a good idea to get a copy of your credit report and look for any errors. Correcting any errors can improve your score a good deal. Reviewing your report can also give you an idea of what areas you can improve on. But if your score is higher than it was when you initially financed, refinancing might be worth it.The market rates have decreased.Another way you can secure a lower interest rate on your car loan is if the market rates have decreased since you initially financed your car. The car market has been all over the place in the past several years, so this will very much depend on when you actually financed.You want to pay off your loan early.Sure, there are ways to pay off your loan early without refinancing. But if you do refinance your loan you can save money while doing so. When you shorten your repayment period lenders will often give you a lower interest rate which can save you a significant amount of money. If you couple this with a better credit score, it can mean a significantly lower interest rate. A shorter period also means you will be paying interest for less time, so you can save a lot of money in the long run.You are having trouble making your monthly payments.Even if you might not necessarily qualify for a lower interest rate, refinancing might still be a good idea for your finances. When you refinance your loan you can change your repayment period. If you are having trouble making monthly payments, lengthening your repayment period can spread out your repayment over more time and thus reduce your monthly payments a good deal (we are talking hundreds of dollars per month). While you will end up paying more over the life of the loan, this can still be a good move for you. Loosening up extra money every month can allow you to allocate that money to other payments, which may be important to you and help your overall financial health.When should you not refinance a car loan?Just as there are times when refinancing your car is a great idea, there are also times when refinancing does not make sense. If any of the following apply to you, it might not be a good time to refinance.You have an older car.If your car is older or has a lot of miles on it, chances are you will have a hard time refinancing your loan. Cars that are ten years old (or older) or have more than 100,000 miles on them are less likely to be approved for refinancing. Your loan is underwater.If your car loan is underwater, you will have a very hard time refinancing it. This means that you owe more on your car than your car is worth. A car loan can become underwater if you do not put a large enough down payment on your car initially and/or make minimum payments on your account. Certain types of cars have a higher rate of depreciation, so simply having a car with a high depreciation rate can mean your loan can end up underwater.Your loan is less than six months old.If your loan is less than six months old it is a good idea to wait a little longer before you refinance. While there is no strict rule on how long you can wait to refinance your loan (you generally only need to wait as long as it takes for the paperwork to go through), experts recommend waiting at least six months to a year. This will give your credit score a chance to bounce back from the hard inquiry and give you a chance to establish that you are making consistent payments. This can lead to a better interest rate and better terms for your refinance. Your loan has less than two years left on it.If your loan has less than two years left on it you may have trouble getting approved, or it may simply not be worth it to you. Car loan payments are designed so that you pay the bulk of the interest upfront. The nearer you are to the end of your loan period, the less you will actually save on interest as your payments will primarily be going towards the principal (this is called an amortized loan). The earlier you refinance the more you will be able to save on interest payments.You have a lot of prepayment penalties.Some car loans come with hefty prepayment penalties. These fees might outweigh any benefits of refining, so do the math before you commit to moving forward.How can I refinance my car loan?If it seems like now is a good time to refinance your car loan, contacting a company that specializes in refinancing is the best option for most people. Using a company that specializes in refinancing, like Auto Approve, makes the application process super fast and easy. They can also help you decide which loan is the best for you. Step One: Gather your information.The first step to refinancing is gathering all of your information. You will need the following information to get the process started:Current loan information. You will need the name of your current lender, your account number, and your payoff amount. It’s good to have the contract handy to compare specific terms as well. Personal information. You will need identification, proof of employment, proof of residence, and your contact information.Vehicle information. You will need your car’s VIN, make, model, year, and mileage.Step Two: Research and ApplyYou should aim to apply with 3-5 different lenders for your refinance. Read online reviews, ask friends and family, and determine which lenders might be a good match for you. Consider a mix of traditional banks, credit unions, and online lenders. When you narrow your list down you can apply.Step Three: Compare and SignWhen your offers come in, be sure to compare all of the terms. Look at the interest rates, the repayment period, the prepayment penalties, and all of the other terms. When you decide on a loan, you can simply sing and start saving. Your new lender will most likely handle paying off the old loan (but be sure to double check this). If you use Auto Approve for your refinance, they can help you with this entire process. From selecting which lenders to apply with to determining the best fit for you, our experts are your advocate for the refinancing process. That’s how you can determine if it’s a good time to refinance your car (and how to decide if you should wait).Refinancing can help you to save a lot of money, but only if the time is right. Our experts at Auto Approve can help you determine if you qualify and can help guide you through the process. Get your free quote to find out if now is the right time for you!GET A QUOTE IN 60 SECONDS

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

We don’t get new cars all the time, so when the time finally rolls around to pick one it is incredibly exciting. But with so many makes, models, and options available to you it can be hard to know where to start. Getting organized and prioritizing your needs is a great place to start, so we are here to help.Here are 8 steps to finding the perfect car for you.Step 1: Determine what you need.The first step when purchasing a car is to determine what you need. There are so many cars on the market with so many features, so you need to prioritize what you will be using your car for and what you need. Here are some questions to ask yourself:Will I be commuting long distances and need good fuel economy? Do I live in an area where I need four wheel drive or all wheel drive?What features are important to me? Do I need a backup camera? Leather seats? All weather mats? Make a list of your must-have features. Then, make a list of features that you would like to have but that aren’t totally necessary.Is this going to be the family car? Do I need to fit multiple passengers and have the best safety features?Do I need a lot of cargo space? How important is trunk space or towing capacity?These questions can help point you towards the type of car you should be considering and give you an idea of where to start. Step 2: Determine what you can spend.The next major factor in the car you choose is your budget. If you are planning on purchasing a car upfront with cash, this answer will probably be pretty straightforward. But if you are like most of us you will need to lease or finance your car. You will ultimately need to determine two things:What down payment can I afford?What monthly payment can I afford?Look at your monthly budget to see how much you can swing every month. There is a general rule that you should not spend more than 20% of your monthly income on transportation expenses (this includes gas, tolls, maintenance, parking, insurance, etc) and you should not spend more than 15% of your monthly income on your car payment. Play around with numbers and your budget to see what you can comfortably afford. You don’t want to put yourself in a position where you are struggling month to month to make your payments. It’s better to underestimate the amount that you can spend every month instead of overestimating.Step 3: Determine if you want a new car or a used car.Think about if you want a new car or a used car. Keep in mind that getting a used car doesn’t mean that you are buying a beater car. You can get a certified pre-owned car that is in great condition with a significantly lower price tag. And most times you will still have the option to finance it. But with a lower price tag comes more wear and tear, an unknown history, and more maintenance costs. A new car allows you to skip the questionable past and the wear and tear, but as a trade off you are paying a good amount more as your car will experience instant depreciation.Step 4: Determine if you are going to lease or buy.When it comes to new cars, you have the option to either lease or buy. There are pros and cons to both, so it will depend on how you plan to use the car and what your preference is. Leasing a car might be a good option if:You want to get a new car every few yearsYou are on a tighter budget and still want a nicer carYou don’t care to work on your car or customize your carYou can stay within the mileage restraints of the lease periodOn the other hand, buying a car might be a good option if:You like to work on your car and customize itYou want the freedom to keep your car and sell it whenever you wantYou drive a lot and will not be able to keep within the mileage restraintsYou want the equity of ownershipLeasing is generally cheaper than financing, so if you are on a tighter budget leasing might be the right choice for you. You can always buy your leased car if you end up loving it.Step 5: Determine what car size and car type is right for you.Now is the time to determine what type of car you need. You already know what features are important to you and how you plan on using the car, so now you get to narrow down what type of car is right for you. Here are the major contenders:SedanCoupeHatchbackSports CarLuxurySUVMinivanVanTruckElectric or HybridAgain, look at how you will be using your car. If you have a family, a minivan or SUV will probably make more sense than a coupe. If you are looking for a nicer ride with all the bells and whistles, a luxury car or sports car is more up your alley. Is gas mileage important? An electric car or coupe is the way to go. Step 6: Determine what brand is right for you.Once you know what type of car you need, you can start narrowing down what brand you should look at. There are lots of brands with different price points and different pros and cons. Most people have a preference off the bat of what brands they like and what brands they want to steer clear from. When researching brands, be sure to consider the following:Who is well known for making the type of car I want? For example, a Subaru is a great option for a rugged SUV, while a Kia is a great option for an affordable sedan.What brand fits in my budget?What do the reviews say? Are people happy with their cars from the brand you are interested in?Is this brand known for safety?Your budget and the type of car you are interested in should help you to narrow this brand list down significantly. Talking to friends and family and reading online reviews can help you to make a final decision.Once you’ve determined the brand that is right for you, you should be able to select the perfect model based on your needs, wants, and budget. Picking the exact color and trim level is also very important. Keep in mind that being flexible on these features may help you get the car a little quicker. If you have a lot of special requests you may have to special order the car from the manufacturer which can take several months.Step 7: Determine where you will buy your car.Now that you know what you are looking for, you need to decide where to actually buy it. This is now easier than ever, as you can do an inventory search online on many sites such as Edmunds to find where you can get the exact car you want. You can even plan to have a car shipped to you if you find the perfect car that’s out of state.Even if you buy a car online, it’s a good idea to take your car for a test drive. You can go to most dealerships and go on a commitment free test drive. There might be something that you don’t actually like about the driveability of the car, so it’s a good idea to physically drive it before committing.Step 8: Sign and drive.When you have landed on the perfect car, you need to cross your t’s and dot your i’s. If leasing, you will have to finalize the terms such as the lease period. If you are financing you will need to apply to lenders and compare the offers. Look at the interest rate, loan term, and prepayment penalties. Keep in mind that you can always refinance your car loan in the future so long as the prepayment penalties are not prohibitive. You will also need to decide how much of a down payment you will put down. Experts recommend putting down at least 20% to help protect your car from depreciation. If you end up in a situation where you owe more than your car is worth, it can be a problem down the road. And that’s it! Once you sign the papers and write the check you can drive your car as soon as it is available. That’s how you can choose the perfect new car in just 8 steps.Buying a new car can feel overwhelming, but following these steps can help you choose the perfect car for you and your family. If you already have your perfect car but have a less than perfect car loan, Auto Approve can help! By refinancing your current car loan you can get a better interest rate, better terms, and a loan that works for you. Our experts can help determine if you qualify for refinancing and help guide you through the process. GET A QUOTE IN 60 SECONDS

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

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

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

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

You may have preferences on a lot of details about your new car. The make, the model, the trim level. But you will have to decide on more than that when you choose to lease a car. You will also have to decide on the length of the lease, which you may be undecided on. Let’s talk about the best length of time for a car lease and how you can decide what is right for you.What is a lease term?When you lease a car you are essentially renting the car from the dealership. The lease term is the amount of time that you agree to rent the car for. Some dealers offer short term leases, which can be 3 month, 6 month, 9 month, or 12 month lease terms. On the other end of the spectrum there are longer term leases that are 4 years. But it is much more common for dealers to offer 2-3 year leases. When determining which lease term is right for you, you should consider the following:Your monthly budget for car paymentsHow you intend to use the car and why you are leasing in the first placeThe shorter the lease term is, the more expensive the monthly payments will be. Additionally, if you are leasing because you want to get a new car every few years, it doesn't make sense to get a longer lease.What lease term should I choose?Short term leaseShort term leases are not very popular, and for good reason. You will pay the most amount of money per month for a short term lease (and it may even be more expensive than financing). But there are still times when it may make sense to you. If you have another car that requires extensive repairs and you know you will need a car for several months, this may make more sense to you than a rental car. Rental cars charge by the day so they can quickly turn into a money hole.2-3 year leaseThese are the most popular lengths of car leases. They allow you to have the car for a decent amount of time while still giving you the benefits of leasing. Typically your warranty will last the entire period of your ownership, so you do not need to worry about expensive repairs. You will also find decent monthly payments by choosing 24-36 months. Choosing the 36 month lease will give you a better interest rate though.Long term leaseYour other option is to select a long term lease, which is typically 4 years. This will give you the lowest monthly payments, although you do run the risk of outlasting your warranty or growing bored with the car before the lease is over. How to decideIt simply comes down to your preference. Are you happy to pay a little more and get to trade your car in 2 years? Would you rather pay less every month and stick it out a little longer with your ride? Considering what is important to you and what you can afford will help you to make the right choice.What happens at end of car lease?No matter how long your lease term is, your car lease will eventually end. And then what? You will have three options at the end of your lease term:Trade in for a new leaseTurn the car in and walk awayPurchase your leased car from the dealershipTrade in.Many people who lease like to have a new car every few years, and leasing allows them to do so with minimum stress. Trading in is a great option if you would like to continue leasing, haven’t gone over the mileage limit, and haven’t had major wear and tear on your car. You can simply return your car, pick out a new one, and sign a new lease agreement.Turn the car in.If you have decided that leasing isn’t right for you, you can simply turn your lease in and walk away. You will be responsible for any fees due to excessive mileage and excessive wear and tear, but beyond that you will be free to do as you wish. Maybe you do not need a car at all, or maybe you’d be happier buying a new or used car. Buyout your lease.Buying out your leased car is another popular option that might be right for you. Buying out your lease will allow you to purchase your car for the residual value that is listed in your contract. This is a great option if any of the following apply to you:The residual value of the car is less than the market value of the carYou really like your car and you don’t want to part with itYou have gone over the mileage allowance and will be responsible for overage feesYou have significant wear and tear and will be responsible for feesIt is very common right now for residual values that are listed in the contract to be less than the market value of a car. This is because residual values are determined at the beginning of the lease and cannot be changed. The increased competition in the used car market has caused an increase in market value, so it is very common for the buyout price to be cheaper than the car’s value. This means that even if you do not want to keep the car you can buy your leased car and sell it for a profit. Getting a lease buyout loan is a great way to do this.Or, maybe you just really like your car and don’t want to part with it. Buying your lease out is a great way to own the car that you love, and it is usually a very affordable option.That’s everything you should know about car lease terms and how you can decide what lease term length is right for you.Leasing a car is a popular option for many people, but it can be hard to decide how long of a lease term is appropriate. Taking a look at your needs and your budget can help you determine which lease term length is best for you. And when your lease ends, a car lease buyout loan can help you keep the car you love (or sell it for a pretty penny).If you are interested in buying out your lease, contact Auto Approve today! Our agents can help guide you through the application process and find the car lease buyout loan that is right for you!GET A QUOTE IN 60 SECONDS

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