In 2019, 85 percent of purchases on new passenger vehicles were financed in America. For the first time, the average monthly loan payment rose to $554 due to higher average loan amounts and high APRs. This left countless Americans overpaying on their auto loans, and in 2020, America experienced its highest unemployment rate since the great depression.
Like many Americans, you may be wondering, “What is happening with auto refinance interest rates in 2020?”
Auto loan interest rates have been steadily declining since January of 2020. As of September of 2020, the average car loan APR was just 4.24 percent. If you’re overpaying on your auto loan, it may be a good time to look at your refinancing options and see how refinancing can lower your monthly payments.
The Benefits of Refinancing an Auto Loan
Refinancing your car loan can provide benefits such as:
- Reduced interest rate
- A longer or shorter length of the loan
- More convenient payment options
- Lower monthly payments
- Better loan terms
- A better customer experience
You can refinance your car loan at any point during your loan. Refinancing is a simple process, and it takes a lot less time than you might think.
What You’ll Need to Refinance Your Car Loan
Now that you know what is happening with auto refinance interest rates, it’s time to explore your refinancing options. To apply for refinancing, you will need to gather your personal information, including:
- Your current loan information, including your lender’s name and your current loan amount.
- Your personal information
- Your vehicle information, including the make, model, and year of your vehicle, as well as your Vehicle Identification Number (VIN)
- Wage statements, such as tax returns or recent pay stubs
Depending on your creditworthiness and your financial situation, you may also benefit from having a cosigner. A cosigner is a person who signs your refinancing loan with you to guarantee payment. With a cosigner, borrowers can often lower APRs and offer better loan terms.
Refinancing an Auto Loan with Vantage Financing
If you make car payments that cost far more than you can afford, it’s time to look at your options. Refinancing your loan can reduce your interest rate, provide you with different loan terms, and substantially decrease your monthly payments. Auto loan APRs are on the decline, making it the best time to refinance a loan. Give us a call to see how we can help.
Contact Vantage today to find out how we can help you refinance your car.
