How to get a car refinance loan
If you are unhappy with your current auto loan, perhaps you should consider a car refinance loan. It can provide you with a better rate and lower monthly payments.
Car refinance loan
Refinancing an existing car loan is an easy process. A new lender pays off your old car loan, and the title is then transferred to that new lender. Your monthly payments are then made to your new lender.
Steps to refinance your car loan
1. Begin by researching where you can get the best car refinance loan. A good place to start is LendingTree's auto refinance page. This page gives you the opportunity to receive car refinance loan offers from up to four different lenders so you can easily compare rates.
2. Once you choose the lender with the best rate, you provide your financial information to qualify for the loan. The lender may want to know your income, assets, debt load, credit history, etc.
3. You pay any fees. These can include:
- lien holder fees ($5 to $10),
- state re-registration fees ($5 to $75) and
- possible pre-payment fees (this depends on the lender).
4. Upon approval and closing, your new lender for the car refinance loan pays off your current auto loan.
5. The car’s title is transferred to the new lender.
6. You make monthly payments on your car refinance loan to your new lender.
Why refinance your car loan?
There are several reasons why refinancing your car loan might be wise:
1. You may be able to get a lower interest rate with car refinancing.
2. You can get lower monthly payments.
3. You may have an upside-down loan. This means that your current loan is more than the car is worth. A car refinance loan can help remedy this situation.
Your current loan situation may not be optimal if you got the loan through the dealership when you bought the car. Car dealerships are convenient when getting an auto loan, but they do not necessarily provide the best financing deals. If you complete our form, you'll get refinance offers. Then you can compare auto loans from different lenders, and choose the loan offer that best meets your needs for a car refinance loan.