What is an Auto Loan?<\/h2>\n\n\n\n
Most people get financial help when they purchase a big ticket item, such as a home or a new car. For an auto, a repayment term (or length of your loan) is usually 36, 60, 72 or 84 months. The good news is you can shop around to find different terms that provide benefits for you.<\/p>\n\n\n\n
Traditional methods include financing through the dealership or direct lending through a financial institution, such as a bank or credit union. And it\u2019s now possible to cast your query to a pool of online lenders to get the best financial offers, in terms of interest rate and more.<\/p>\n\n\n\n
The Federal Reserve sets a standard interest rate that most private lenders follow, so your financial decisions could be served by keeping an eye on \u201cthe Fed\u201d and what they are doing. When they lower interest rates, it could be a great time to buy.<\/p>\n\n\n\n
Dealership Financing<\/h3>\n\n\n\n
As with most things, there are pros and cons to this type of situation. Even though a bank will most likely service it, the contract is with the dealer. Car shoppers can sometimes find stellar deals when auto manufacturers offer very low interest rates to spur sales. However, if this is not the case, you may not have the same freedom to determine your rate as you would when shopping around with a lender.<\/p>\n\n\n\n
Lending Institution<\/h3>\n\n\n\n
Those who walk into a dealership with a pre-approval typically have not only found a lender that will give them the rate they want, they have the ability to walk away from a dealership that isn\u2019t giving them the best deal. Dealers understand this, so you may get more favorable terms (plus upgrades thrown in) when you use direct lending for your current car loan.<\/p>\n\n\n\n
Whether you are getting a new loan or refinancing an old one, you\u2019ll still have to provide important things such as personal information, including proof of income, and go through a credit check. If you have poor credit, you may not be able to get a palatable interest rate from anyone. Your annual percentage rate (APR) may seem higher than your interest rate, because the APR includes fees associated with purchasing an auto, such as document, title and registration, destination and insurance<\/a>.<\/p>\n\n\n\n For the most part, people refinance<\/a> in order to get better deal on their terms. So, it\u2019s important to wait until your credit report has had time to rebound after you purchased your current vehicle \u2013 and hopefully, had time to increase by a few points.<\/p>\n\n\n\n Refinancing has many pros, like lowering your monthly rates, shortening the time left on your loan to pay or the opportunity to pay less interest overall. If your credit report is healthy, your financial institution or company may offer you a lower interest rate that will help you pay off your debt faster.<\/p>\n\n\n\n Refinancing your vehicle is a big decision and there are several factors to consider in order to determine if it\u2019s right for you. You may just want to get out of your original loan and that could be a good move, depending on the reasons. Interest rates could have dropped or your credit score could have improved significantly, which could give you better terms, help you pay off debt faster and save you money.<\/p>\n\n\n\n You can take advantage of this free auto loan refinance calculator<\/a> to see how taking this action may affect your monthly payment, as well as the bottom line of your loan. Using financial calculators makes the most sense when trying to determine is this is the right time for a move.<\/p>\n\n\n\n Let\u2019s take a look to determine if refinancing your car is in your favor:<\/p>\n\n\n\n Refinancing your auto loan can be a great option in some circumstances and give you the ability to have more control of your finances, but you need to assess your situation carefully. You first need to completely understand your original terms, read the fine print carefully, and then make sure you research, plan and shop around with various lenders before refinancing your car. If you choose to switch lenders, make sure your original one does not have a prepayment penalty.<\/p>\n\n\n\n In a sense, yes. You will be starting over with a new one. In most cases, the terms will be more favorable. However, if you are taking this step because you need extra money or dollars in your pocket, a longer term and\/or lower monthly payments, your new loan may increase the total cost of your debt. It\u2019s a financial decision that will impact your unique situation.<\/p>\n\n\n\n The process of refinancing comes with pros and cons and it\u2019s important that you understand all of the available information to make the right choice. Common reasons for refinancing include financial needs and getting a shorter term on the life of the loan. Let\u2019s take a deeper look at some of the pros and cons of changing your financial situation in this manner.<\/p>\n\n\n\n The process of refinancing is basically the same application process you went through when you took out your first \u2013 or any – loan. You\u2019ll want to gather the relevant information and documents to submit to your finance company. This includes:<\/p>\n\n\n\n Be sure and provide accurate and truthful information to your finance company. Just as with a mortgage, you will be awarded this money based on your answers to their questions.<\/p>\n\n\n\n Those who are considering financing or refinancing a major purchase, such as an automobile, can take certain steps to help get a better deal. These include:<\/p>\n\n\n\n Once you\u2019ve gotten a great deal, you can potentially lower your payment even more by signing up for auto-pay, which can earn you a discount.<\/p>\n\n\n\n One thing is for sure. You\u2019ll need cheap car<\/a> insurance whether you decide to refi your car or not. At Freeway, we offer affordable coverage that suits your needs. We are happy to help. Get a fast and free insurance quote online<\/a>, give us a call at (800) 777-5620<\/a> or stop by one of our convenient locations<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" It simply means replacing an existing loan with a new one. You\u2019ve probably heard of refinancing. It\u2019s commonly more known in relation to a home purchase or mortgage, but it\u2019s possible to refinance your automobile loan, as well. It\u2019s important to understand what taking this step means and how the repercussions could affect other areas […]<\/p>\n","protected":false},"author":1002600,"featured_media":7628,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[78],"tags":[86],"importance":[],"type-content":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/1496"}],"collection":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/users\/1002600"}],"replies":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/comments?post=1496"}],"version-history":[{"count":10,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/1496\/revisions"}],"predecessor-version":[{"id":7986,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/1496\/revisions\/7986"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/media\/7628"}],"wp:attachment":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/media?parent=1496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/categories?post=1496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/tags?post=1496"},{"taxonomy":"importance","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/importance?post=1496"},{"taxonomy":"type-content","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/type-content?post=1496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}When is the Best Time to Consider Refinancing Your Vehicle?<\/h2>\n\n\n\n
![\"Happy](\"https:\/\/www.freeway.com\/knowledge-center\/wp-content\/uploads\/sites\/2\/2023\/02\/freeway-why-refinancing-your-car2.jpg\")
<\/figure><\/div>\n\n\n\nShould I Consider Refinancing?<\/h2>\n\n\n\n
Will This be Like Starting My Loan Over?<\/h2>\n\n\n\n
What are the Pros and Cons of Refinancing My Vehicle?<\/h2>\n\n\n\n
Pros<\/h3>\n\n\n\n
Cons<\/h3>\n\n\n\n
What is the Process to Refinance a Car?<\/h2>\n\n\n\n
How to Get the Best Deal<\/h2>\n\n\n\n
Get Affordable Auto Insurance Online Today<\/h2>\n\n\n\n