Refinancing Your Car A Potential Money Saving Strategy In 2015

Interest rates have been low for awhile now. You might have thought about your auto payment and wished you could reduce it, well right now might be a good time to go for a auto refinance. An auto refinance could save you thousands of dollars over the duration of your loan, a few hundred dollars per year. An auto refinance is not for everyone but if you are currently paying 6 percent or higher you may want to consider an auto refinance.

Now you may be think of how difficult it may be, as everyone knows refinancing your mortgage can be a pain staking process, or a headache like consolidating ones credit card balances. Unlike both refinancing your mortgage or consolidating your credit card debt applying for and obtaining a auto refinance is actually a relatively fast and painless process. You do not even need to have your auto appraised. There are usually not any fees and when they are they are low cost fees.

When should you consider refinancing your auto? If you fall into any of these situations below you should consider an auto refinance and if you are paying to much right now.

You didn’t get your best rate:
Perhaps when you applied for you car loan you had a good credit score. Your debt to income ratio might have even been spot on but for some reason you ended up with a poor rate. Usually this is due to going for a dealer ship based loan as these loans tend to carry a higher rate. Many consumers fall into this trap due to not knowing any better. The dealers do this to make extra money much the same way they usually make money by selling you an extended warranty.

Interest rates are lower:
If the market interest rates have dropped more than 1 or 2 points since you applied for your original loan you could save a lot of money with an auto refinance. Refinance rates are in the used car loan bracket and are higher than new car loans. Even a single percentage point can be a huge savings for you over the life time of your loan.

Credit score has improved:

When you applied for your original loan if your credit was in a different bracket, for example if you were a sub prime borrower but your new credit score places you as a prime borrower now is the time to re refi. Perhaps you had no credit or a few old delinquent accounts which have now fallen off of your credit report since you bought your car. Did you know that interest rates of 18 to 20 percent are common for those with whats called thin credit? Thin credit is when you have very little information and accounts on your credit report. Even a credit score jump of 30 points could mean saving hundreds of dollars per year via a refinance.

Your personal financial situation has changed for the worst:
Perhaps you have an upsurge in bills and expenses, or lost a secondary source of income. At any rate if you need to cut back on expenses a refinance could make all the difference. The money saved by a lower payment could be just the lifeline you need to stay afloat and it will not cost you money to find out if you qualify for a lower rate.

Searching for online loan offers in 2015, check out for the best options for consumer based loans from the convenience of your home or office.