How to Refinance a Car Loan The Right Way

Refinancing a Car Loan

Refinancing a car is a really good way to save money but you have to understand how to do it properly in other to not get screwed. In this article, we are going to teach you how to refinance a car loan and I am going to tell you why you want to do it.

Let Get Started

Refinancing a car is not that complicated to do but I will break it into 2 different part which is WHY & HOW so that all this stuff can make sense to you. 


WHY?

Let start with why you should refinance your car, the main reason why you want to refinance your car loan is that you want to get a better interest rate than a current loan you have already.

If you already got a bad rate on your loan because as long as you make your payment on time and you have a better credit then you are probably going to get a much better rate and that is going to save you a lot of money

Let say you own $20,000 on your loan at 11% interest and you still have 3 years left to pay off the loan, with those number you are going to be paying about $180 a month in interest which is totally reap off. 

But if you refinance that loan to 5% interest then you would only be paying about $80 a month in interest which is better and that still on a 3 years terms

The other reason why you might want to refinance your car loan is that you can't afford the payment. 

Pay attention here, because I want you to understand what you are doing if this is the road you want to take

By refinancing your car loan and expending it length, your payment are going to go down even if the interest rate goes up a little bit and it's because of the length of the loan because if you got a car loan that has 3 years terms on it and you turn it into 6 years then you are going to save a lot of money in your monthly payment even if that interest rate did go up a little bit.

I would highly advise that you don't take this road or just sell your car if you can't afford it. The main reason I said this is because a car is depreciating access, so the longer you have a loan with a car the more likely you are going to end up upside down in the loan.

Being upside down in your car loan mean that you own more than it worth which is not a good thing, you have to understand that when your loan is a weight too long you are going to be paying too much interest and your car is going to depreciate faster.

Don't be decisive by lower monthly payment it's all a liar

HOW

If you want to get a better rate on your car loan you have to have a better credit as long as you make your payment on time your credit should go up naturally, if you want to get the best rate when you are borrowing money then you have to have good credit.

Let move on to find a lender which is easy to do you can check your local Credit Union because they tend to have the best rate or check online. As far as online lender goes I would highly recommend you check out Lightstream loan because they got the best rate.

Am not sponsor by Lightstream I just want you to know that there is tons of crap loan out there and Lightstream really does a good job for being honest with their customers.

Be responsible with how you borrow money and I promise you are going to end up much better situations

Author:

Hi, i am Micheal, the guy behind Roadtosuccesse. I share tips and tricks to help take a business to the next level, show which systems I personally endorse and use, share what I learn as a student of the game, and help people with personal development so that they can reach their full potential. You just have to have the right strategies and the right mindset. You don’t have to wait for anyone to hire you—you’re going to start your own business from home.

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