Did you know that you could be paying more on your car loan? That’s right. You could actually make savings on your car loan today by getting a lower interest rate. Auto loan refinancing lets you replace your original auto loan with a new one with lower interest rates and even lower monthly payments (if needed).
So why pay more for your car loan? Read on to find out how you can make savings on your auto loan by refinancing it.
How to Make Savings on Your Auto Loan?
The amount of savings that borrowers made on their auto loans in 2021 was at an all-time high at $97 on average per month. More than half of the borrowers made savings between $40 to $149 by refinancing their auto loans.
Auto loan refinancing allows you to make exponential savings over the course of your loan term. You can save about $2,200 by the end of your loan term. But how does it work? How can you qualify for auto loan refinancing? Let’s find out.
How to Know if Your Car Qualifies for Auto Loan Refinance?
Most lenders have similar requirements for your car to qualify for an auto loan refinance:
- It has less than 150,000 miles on it.
- It is less than seven years old.
- You have a higher credit score of 580+
- Your car was not used commercially.
How to Apply for Auto Loan Refinancing?
Follow the steps below to apply for auto loan refinancing:
- Collect your documents, including a recent payment stub of your auto loan. Make sure you know your current interest rate, the loan term left, the monthly payments you make, and the remaining balance.
- Check your original loan contract to see if there are any prepayment penalties.
- Keep your driver’s license, VIN, Social Security number, and proof of employment.
- Compare different lenders in your area and note down their rates.
- Evaluate your credit situation by pulling your credit report and checking your credit score. If you are timely on your loan payments, your credit score will have improved in recent years.
- Apply for an auto loan refinance here.
Make Savings on Your Car Loan!
Why pay more for your car loan? Apply for auto loan refinancing today to get lower interest rates. It is worth a try, and you could make savings of up to $2,200!