Buying a car is expensive. A common question is, "How can I finance my car?" In order to cover the costs, many people choose to turn to lenders at dealerships or private for help. However, a car loan can come with pitfalls--namely, incredibly high interest rates.
In recent months, car loans have gotten a bad rap. They can be seen as predatory to borrowers with bad or credit. Due to the heavy marketing of scammy companies, borrowers can easily fall into the trap of an unfair plan that is extremely difficult to repay.
If that's happened to you, there is a way to make it better. In order to get a better deal, savvy borrowers choose to refinance their loans. This gives you the opportunity to get a lower interest rate or spread your payments out for a longer amount of time. Though, if you need more time, be aware of the total amount you'll be expected to pay. With regular interest rates, the cost may be more than you expect.
The answer is a definite yes! Though, in most cases, a lender won't grant a loan if the used car is older than 5-7 years. Have an older car? It never hurts to ask if it is eligible. You'll never know until you ask.
However, it is important to consider how long you'll need to pay back your loan. It is easy for the loan to become "upside down," especially with used cars. This means you owe more than the car is worth in interest and other fees.
Whether you're looking to refinance a new or used car, the process is similar.
The refinancing process switches possession of your car title to the new lender. As a general rule of thumb, borrowers with interest rates above 6% and an improved credit rating could benefit from refinancing.
In the end, we recommend doing research. Choosing whether or not to refinance your car loan is not a decision that should be taken lightly. Get quotes from a variety of companies to get a sense for where the best deal is.
In addition, read the fine print. Know the ins and outs of the agreement before you sign anything. This will help prevent you from getting into a situation you'd rather not be in.
Already own your car? You can still finance your car with title loans online. Instead of making direct payments for a car, you'll pay low interest rates and be able to spend the money on whatever you want, from gasoline to medical bills.
Whatever you financial situation is, you have options. We'd be happy to help in any way that we can, so feel free to contact us at any time.
By working with our lenders, you could end up saving up to 20% on your repayment, and eliminate the risk of being taken advantage of.
Get A Free Quote! - Find out how much you can get before going to a store.