Auto Refinance
Refinancing auto loans is very much the same as refinancing house loans. Simply put, it involves trading an old car loan that has less favorable characteristics with a new one at better terms and conditions. This proves to be a good decision when the action can reduce the interest rate without having to stretch the terms of the loan beyond the current schedule. The key idea that should be remembered here is that a good auto loan refinancing is one that yields lower interest costs.
There are six steps to refinance an auto loan. First, the client should contact his or her car loan lender to validate the car loan’s payoff amount. Once this piece of information has been gotten, the next step is to contact companies that offer auto loan refinancing. The top two auto loan refinancing companies have set up their own websites where their clients can apply for refinancing. Clients can only apply if the auto refinance company’s APR or annual percentage rate is at least less than 1 percent of their current loan’s APR. The client should ensure that they submit pertinent information such as the car’s VIN number and their names accurately.
The processing of the auto refinance application online is usually completed within an hour. The company will notify the applicant via electronic mail of the details on how to payoff his current loan. Next, the applicant needs to notify his bank that the auto refinance company will be his new lien holder and that the title should be sent there. Some states charge a certain amount for lien transfer services. This should be just fine because the charges are quite small when compared to the amount of savings the applicant can have. Once completed, the applicant may use auto refinance calculators to check the new rates and financial obligations. The auto loan refinancing may then be completed a day or two after the day of the application.
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reich_gesundheit said on July 23, 2010
Scam
Andri Matth said on July 24, 2010
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pjm1977 said on July 27, 2010
Just sent you an electronic mail in regards to seminar follow up. Bummed I was not there. Bet it was awesome!
john_crazy_martin said on July 28, 2010
if you get the money from your bank you are still financing the car, just now through them. but the big question is why is you interest rate so high? and what is "extremely high" is it 20% or is it 8-9% people have a perception that every car can get 0% (not saying you) but there are people that belive they can get 0% on any car.
here are a few good ideas.
1 if you are getting the money on a home equity loan and its less than the rate you are paying now.
2. if you are refinancing against the car and the rate is lower than you are paying now.
3. dont pay your loan off now, you would be paying off a depriciating asset.(cash from a savings or any type of account that earns interest) actually cost more in the long run than any interest rate.
before you do any of the above see what your bank is offering and also see the term i.e. 36 months verses whatever you term is now. and see if they can beat it. if they beat it by .50 or under its still not worth it.
i hope that helped and good luck.
i have to add this, first you dont need a 720+ credit score to refinance a car, you can be between 620 and up and as far as using an equity loan from your house, its a good idea as long as you financing at least $10000.00 because then you can wright off you interest and acctually pay yourself back the interest(see an accountant for the details on that) and i wouldnt put too much credit on someone with little or no experience in the field of auto loans.
again good luck.
Dick Tater Tot said on July 29, 2010
What? It should not be that hard for you, as you signed up for an account on Y!A. Which should mean that you already have a Yahoo email. If not, go to the yahoo page and click "sign up…" and the rest is self explanatory.
dale b said on August 2, 2010
You won't find a used-car loan better than what you have. The national average for a 48 month used car loan is 7.56% (Bankrate.com).
Your 5.5% rate was a new-car rate, and probably a promotional rate. Used-car rates are always higher than new-car rates, and there are no promotional used-car rates.
Robert B said on August 2, 2010
Your best bet is to contact an UPS agent for info!!!
Randomname83 said on August 3, 2010
2. Periodic rates. Section 226.14(c)(1) applies if the only finance charge imposed is due to the application of a periodic rate to a balance. The creditor may compute the annual percentage rate either:
• By multiplying each periodic rate by the number of periods in the year; or
• By the "quotient" methods. This method refers to a composite annual percentage rate when different periodic rates apply to different balances. For example, a particular plan may involve a periodic rate of 11/2% on balances up to $500, and 1% on balances over $500. If, in a given cycle, the consumer has a balance of $800, the finance charge would consist of $7.50 (500 × .015) plus $3.00 (300 × .01), for a total finance charge of $10.50. The annual percentage rate for this period may be disclosed either as 18% on $500 and 12% on $300, or as 15.75% on a balance of $800 (the quotient of $10.50 divided by $800, multiplied by 12).
Above information was taken from
Ok so what does that all mean?
If you take a cash advance and pay a transaction fee of 50 dollars it would impact your composite annual percentage rate and make your rate look a lot higher. Late charges/etc can throw it off as well.The composite rate is not an APR. The composite annual percentage rate gives you the actual percentage you are paying on your loan including all fines/costs/etc.
sv said on August 4, 2010
3P = P(1 + 2%)^4n whence n = {log(3) / log(1.02)} / 4 = 13.86953 years.
Jasmine said on August 5, 2010
I would think so but it also depends on the length of your car loan. If you are on a 5 year or 60 month loan then you can save $4200 in interest!!! Why wouldn't you want to do that??
1stTimers said on August 9, 2010
Effect of Annual Percentage Rate on Mortage Loan -
BobbieNeace said on August 9, 2010
Refinance Car Loan, Car Finance Refinancing Cars Auto Lenders