What do you know about car refinancing?
If your answer is “nothing,” you are not alone. Car refinancing, it seems, is a mystery to most Americans.
As recently as mid-2012, more than 60 percent of Americans didn’t know that car refinancing is possible, according to a survey by CarFinance.com, which questioned 2,000 people.
You would think more vehicle owners should know about car refinancing because of the potential savings in monthly car payments and over the term of their car loans. RoadLoans customers provide several good examples of the savings that they have experienced:
Among the Customer Reviews on the RoadLoans.com website are savings examples of $80 to over $200 a month. Savings for those owners ranged from nearly $1,000 to more than $2,400 a year, and from about $5,000 to nearly $10,000 over the term of a typical five-year loan refinance.
Savings aren’t guaranteed, but our examples suggest car refinancing is worth considering for many, because who couldn’t figure out how to spend an extra $1,000 or more a year.
(RoadLoans cites a typical savings range from $70 to $100 a month, which is $840 to $1,200 a year or as much as $6,000 over five years of a typical loan term. The monthly savings is a result of a longer term, lower interest rate, or both, and is based on a comparison of your new loan with RoadLoans and your prior loan. Savings may vary, and your savings may be different.)
Like home mortgage refinancing, car refinancing involves getting a new loan to pay off an existing loan – in this case, an auto loan. The greatest value usually is in getting car refinancing with a lower interest rate, resulting in lower monthly payments than the existing loan. However, some borrowers choose longer terms on their loans to create room in the family budget for other needs. Either way, car refinancing is easier than mortgage refinancing in terms of qualification criteria, time and costs involved.
“Unlike refinancing your mortgage or even consolidating credit card balances, refinancing your vehicle loan is usually quick, easy and painless,” writes Russ Heaps in an article at Bankrate.com. “No appraisal will be required. And usually there are minimal, if any, fees.”
As good as this all sounds, it still leaves open the question of whether car refinancing is right for you. We’ll help you answer that in tomorrow’s post on The Open Road blog.
If you need fast-and-easy vehicle refinancing for your car, crossover, pickup or SUV, visit RoadLoans.com for the solution.Written by Mark Macesich