Refinancing your car loan could save you thousands of dollars over the life of your loan, so it’s important to keep up to date on the options available to you and know where to find the best auto refinance rates.
Most financial institutions will refinance auto loans – banks, credit unions, direct lender and market lenders to name a few. It’s to your benefit to do your research and find a lender that will give you the best deal. Otherwise, refinancing may not benefit you or save you any money.
So what should your loan shopping strategy be? Here’s how to get started:
Cast your net wide
You should plan on getting quotes from several different lenders to make sure you have plenty of options to compare. Be sure to look at more than just the bottom dollar, too. You’ll want to consider the APR as well as the length of the loan, the reputation of the company and the quality of customer service.
Start with your current bank
You already do business with them, so there’s a chance they’ll offer you a better deal than some lenders. In some cases you may be required to meet qualifications such as having a savings account, agreeing to set up automatic payments or committing to keeping a minimum in your bank account. Make sure you understand the fine print before signing the dotted line.
Approach your current lender
Negotiating your existing rate might be a good option. They already have most of the personal information required so you’ll save time on shuffling through the lengthy paperwork. Even if they offer you a good deal, you’ll still want to compare rates with other companies. You can use it as a bargaining chip with your current lender to show that you’re not afraid to take your business elsewhere.
Many good deals can be found online. There are many companies that don’t have local branches in your area, but are able to serve customers nationwide.