Refinance Your Auto Loan

As interest rates drop, people's thoughts turn to refinancing — refinancing their home loan, that is. What they don't know is that refinancing an auto loan is easier to do, and it can save you some serious money.

How much? Say you bought a new car six months ago. And say there were a few dings on your credit so the dealer told you that your loan would be 11 percent on a 5-year loan for a $23,000 car. Your monthly payments are $500.

Now let's say that you surf the Web until you find a company that offers auto refinancing. You could refinance the balance of your loan and lower your payments to about $400 a month. That's a savings of nearly $6,000 over the life of the loan.

Other examples could well be more dramatic. In some cases, a new car buyer could wind up with a loan based on an 18 percent interest rate. By refinancing at a competitive rate, the monthly payments would be slashed.

"One of the best-kept secrets today is refinancing your auto loan via the Internet," said Jason Mogler, president of LenderSquare.com. "All it takes is the time to fill out the application — which is about 10 minutes."

So, if refinancing is such a great move, why don't more people do it? Possibly, they anticipate the same kind of application-heavy process found in refinancing a home loan. It could simply be that people don't know it is possible. After all, the only risk is the 5 to 10 minutes it takes to fill out the application.

Remember, as the Federal Interest Rate drops, auto loan rates follow. Why throw that money away paying interest? Join the wave of the future and surf the Web for a good new auto loan.

For further information on auto refinancing, we recommend Auto Refinance