Home / refinance loans / Getting a Refinance Used Car Loan Could Save You Money

Getting a Refinance Used Car Loan Could Save You Money

Getting a Refinance Used Car Loan Could Save You MoneyHave you ever gotten a refinance used car loan before? Whenever you purchase that car, it is very likely you got it through a car loan of some sort. But we all know how much new cars can cost, and many folks simply can’t afford to buy one – much less pay for them in all cash. So those of us in that situation will usually go out and get ourselves a big old fat car loan and settle for paying it off sometimes in the future. And a solution for many of us has been to buy used cars. Just because a vehicle has been used does not mean it is not a quality purchase. If a used car has been properly maintained, then it still has lots of service yet and still has monetary value.

Used Car Owners Could Save Big

If you own a car now, then it is officially a used car and there is a big chance you did your purchase via car dealership of some sort. And there are many dealers out there who will provide payment plans for used cars. But the one thing that dealers are known for is charging you interest rates that are considerably higher than average. Lots of people just do not think about this and simply are not aware of this fact. They are usually just happy to get the car they want financed. If they like the monthly car payment amount, then they are good with that. Never mind that they’ll be paying for months and months. So where is that refinance used car loan again?

Refinancing that Used Car

Sometimes they realize later that they might have been ripped off with the financing they settled for. All it takes is seeing a few ads in the newspaper or on TV to figure out the car loan interest rate you have is much too high. After you digest your buyer’s remorse for a few days, then you start looking around to see if you can indeed get a refinance used car loan. Believe it or not, there are some poor folks out there that are paying 20% or more annually on their auto loans. But when you are willing to get refinancing for that current used car loan you have, you can actually save yourself thousands of dollars over the long run.

Now you need to realize that the earlier you do this, the better your chances of racking up those big savings. The longer you wait, the more it hurts you. Your loan balance will eventually reach a point to where it really won’t matter anymore and refinancing your used car will not save you anything.

There are two things that will have a massive impact of how much your refinance used car loan will save you. The first thing is the amount that you need to refinance. If you made a big down payment, then it should be very easy to save money – and to get the loan approved because the risk is lower for your new lender. The second thing is the kind of deal you got for the make and model of your car. The biggest measure of this is the current Kelley Blue Book of your car. If the balance of your loan is lower than the KBB value, then you will have no problems saving money. If the balance of your loan is higher, then you may need to make another down payment to get your new lender to approve your refinance car loan.

Read more about getting a refinance used car loan and other car loans here:

https://www.lightstream.com/used-car-loans

Leave a Reply

Your email address will not be published. Required fields are marked *