Buying a new or used car or refinancing an existing car loan

It is possible to finance a car loan

You should pay attention to details. The rules of refinancing an auto loan are basically the same as when the original loan of the same request, with details that can make more or less beneficial to just keep the original loan process.

When considering refinance your car, you have to be clear about what goals you want to achieve: if what you want is to pay faster the loan and reduce the total amount of money spent on interest, or need to reduce the amount of monthly installments. Have you considered any of these options? What impels you most?

To pay off the loan faster, you need not refinance. The easiest way to hasten the end of the term and save some interest, is providing frequent capital or "principal" extra payments. By lowering capital interest and loan term are recalculated comes forward, reducing the number of actual paying dues.

Reduce the monthly amount of fees can be done by changing one of two variables: obtaining a lower interest rate to existing, or (can also be simultaneous), extend the number of shares for months. By extending the fees for most months you'll be spending more money on interest at the end of the loan.

In the case of interest, you should know that when you consider refinancing, so you would have been its sole owner, it is always considered a used auto loan and interest for used cars are slightly higher than those of new cars.

For example, in Florida, in June, for a new auto loan rates can be as low as 4.6% for 48 months; while the economic rate of cars in the same term is about 6%.

But worth the effort consult and compare. The process is usually simpler than the original request, but you should be aware that there may be administrative positions or "application fee" that vary between states and markets (in Florida there are up to about $ 150 per application).

Start comparing between:
- In your bank or credit institution (Credit Union). If you are a member of a credit institution, these often provide benefits to its members for automotive loans.
- With the current auto financier.
- On the internet. Take "aggregators" financiers as Bankrate.com, that enter the zip code you provide a menu of options and contacts with financiers in your area; there you can get an idea on interest available by month refinancing desired.

In all cases the quality of your credit is still vital.
Also ask if they offer discounts automatically debit payment to your account. You will be surprised how easy it is to do and how advantageous it is to get discount rates and always pay on time. The difference may be from 0.25% to 1% and less interest!