Refinancing car loans has gotten to be a big business; with lots of players in that marketplace but here are a few things that most all of them are looking for:

  • A car from the last 5 model years(some will take 7)
  • A vehicle upon which you owe less than its value
  • Good payment history (you’re not in default)
  • You owe at least $7500

The conditions under which you should consider applying for a refinance are:

  • Your credit score has improved since you took out the loan
  • The interest rate reduction is at least 2%

Car loan refinancing if you meet all these conditions can put some money back in your pocket or ease your financial burden each month.

If you need some help figuring out whether you meet some of these qualifications there are a number of internet sites which can give you an idea of your vehicle’s current value. A call to your current lender will get you the payoff figure for the loan. This figure can differ significantly from the number of payments times the amount method since like a mortgage, interest is frequently paid up front.

Next you need to look at your current financial status. If you were struggling with debts, a job loss or other factors which may have negatively impacted your credit score when you bought the car, but which have since improved you may be a good candidate for a refinance. It all begins with your credit report and score. It’s definitely good advice to have a recent copy whenever you are considering a financial transaction. The other factor is of course the interest rate that you are offered. If it’s not at least 2% lower, it’s probably not worth it to you. Some consider extending the contract to lower payments but this often results in a higher total cost despite the monthly reduction.

If you’re looking for a source for car loan refinancing considers the The lender you currently have will certainly not make you an offer, so consider us, we have the lenders available to provide auto refinancing and experts who will help you through the whole process. You may even end up with the bonus of a month with no car payment!