Posts Tagged car refinancing

Who Qualifies for Auto Refinancing?

Who qualifies for auto refinancing?In today’s economic climate, experts are constantly pushing for people to save money. Recent estimates are that to be financially viable a person should have at least three months’ worth of bills saved up. This can be problematic for those living paycheck-to-paycheck. In order to get more financially stable, many are turning towards refinancing their home and auto loans to try and save money. The question is who qualifies for auto refinancing?

Simple and Clear

The process of refinancing a car is much easier than that of refinancing a mortgage. The qualification criteria are more straightforward and there is less paperwork, time and cost throughout the process. The catch is that credit becomes an important factor.

Interest Rates

Pay attention to current interest rates. If the rate you are currently paying is much higher than the current standard rate, you may want to look at refinancing. For example, between 2008 and 2013 interest rates dropped by nearly 2.5%, a significant decrease. If you are paying 7% or higher on your current auto loan, now might be a good time to consider trying to lower those monthly payments.

Credit Score

Credit is all-important when it comes to auto loans. Still, the criteria for applying are far less than those for home loans. If your financial situation has improved over the past few years, and you are maintaining a strong payment history, you might be surprised at just how qualified you are for a new and lower interest rate on your loan.

How Long Is Your Loan?

The length of your loan is another factor you should take into account. If your loan is very long—up to eight years—it may be time to look into re-investing. A shorter loan at a lower rate may involve equivalent or slightly higher payments, but you will pay off your vehicle faster. If you can afford to do so, you might be able to save more money faster after all is said and done.

With a long loan you will pay much more in interest because of the long term. They key factor here is that it is not always about your monthly payment. Sometimes, removing the debt faster is a more ideal situation.

Things to Avoid

As attractive as refinancing may be, there are certain situations in which you should avoid doing so. If the existing finance deal includes a penalty for early payment, or there are fees that offset any savings you would gain, refinancing may be a bad idea.

Likewise, understand that refinancing can extend the life of your loan. If you are trying to reduce your repayment term, a refinance can sometimes be a bad deal. You are essentially taking out a new loan to pay off the old. Make sure that your new loan term will reduce the money you spend overall, not increase it.

If you think that refinancing your auto loan would be a good step for you, we are happy to discuss the possibility. Give us a call today 800-258-3759; we are here to help!

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When to Refinance Your Car.

In this economy, which is enduring a slow recovery, interest rates hit historic lows, but are once again beginning to slowly climb again. As this goes on, the word “refinance” is on many people’s lips. On down from mortgages to car loans, people are looking to grab up on the lower interest rates while they can. But what situations are the best for you to refinance your car? Let’s look at the top few.

Lower Interest Ratesrefinance your car

With interest rates down, you might find that the prime rate for your vehicle could be lower than the one you currently have. If you’re paying 6% interest, and you can get a 5% rate, you should go for it—you may be able to save a lot of money over the life of your loan. In fact, if your rate is currently 6%, you should absolutely investigate refinancing, as lower rates are available.

Improved Credit Score

If your credit score was not ideal when you first took out your loan, and you have taken steps to improve it, refinancing might be a great way to take advantage of your newly-risen score. If you purchased a car with credit problems, your interest rate was almost certainly sub-prime; refinancing can get you a lower rate, which can save you money in the short and long run.

Financial Hardship

If you’ve encountered a period of financial hardship and need to reduce your bills, but your credit rating hasn’t yet taken a major hit, go for a refinance. Again, grabbing a lower interest rate through refinancing your car loan can mean lower monthly payments, which could enable you to manage one or two more bills per month.

Expiring Car Lease

If you’ve been leasing a car, generally you have three options:

• Turn in the vehicle and walk away
• Turn in the vehicle and lease a new one
• Finance the vehicle’s remaining cost and buy it outright

If your car is in good shape, has been reliable, and you like it, you can find a lender that refinances the vehicle and get a good interest rate on buying the vehicle. The only risk in this case is that you still may be paying on the car loan after the vehicle’s warranty expires. But if you drive the car lightly and feel it to be reliable, refinancing your car can be a great approach to owning your formerly-leased vehicle.

Remember, refinancing your vehicle can save you hundreds or even thousands of dollars over the life of your loan. If the circumstances are right for you, investigate this as a strong option to lower your monthly payments and save money.

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Are There Other Upside Down Car Loan Options Besides Refinancing?

Upside Down Car LoanWhen you have bad credit and you try to trade in your car on a new one, you may find that your current car financing situation has left you in an upside down car loan. This means that you still owe more on your car than the vehicle is currently worth. This can be a nightmare for the prospective buyer; many people refinance their debt to keep payments manageable, but that doesn’t solve the problem of needing a new car, and the shorter term of a new refinance can result in much higher monthly payments that can lead you into more trouble.

The question is, are there other options available besides refinancing? There are several, in fact, and each carries its own risks and benefits.


Seek Incentives to Cover the Loan

Sometimes, you can find a good deal on new car financing which will carry enough incentives to cover the amount you still owe on your old car. This is an ideal trick. The incentives cover everything you owe, leaving you clear to begin payments on the new car. The problem with this is that your new car may lose value faster than one that isn’t “incentivized,” which could see you end up in another upside down situation later.


Wait before Trading

If you can manage it, hold on to that old car for awhile and continue to pay down the loan. Eventually, the debt and value will normalize and you can then get back on top of your financial situation. The down side comes if your current vehicle has high mileage, or needs a lot of repairs. That means you might not get much value out of the vehicle. However, if you are thinking of refinancing, just use those bigger payments to pay down your principal faster instead.


Roll Over Debt

This is similar to refinancing, but in this case you let the dealer selling you a new car roll over the extra debt you owe into your new car loan. This allows you to get your new car and drive it home, but carries the disadvantage of a higher principal and probably a much longer-term loan. You’ll pay more interest over time, which may not be ideal.



Some folks may consider letting the dealer or bank repossess their car. You will be out from under the responsibility for your old car, but put bluntly, this will destroy your credit rating and should not be considered in any but the most extreme of cases. This newly-harmed credit rating will affect your ability to get new car financing; at the very least you’ll end up with a sub-prime interest rate. At worst, you may not be able to get financing at all.

While none may be 100% ideal, there are other options besides refinancing if you are in an upside-down loan. With patience and research, you may even get back on top of your financial game.

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Keep More of Your Money in Your Pocket with Car Refinancing


Do you find yourself in a situation where you are struggling to make the monthly payments on your auto loan? Are you looking for a way to save cash every month? If so, there is a simple solution that can end all of your financial woes. Car refinancing allows you to keep more of your money in your pocket every month just by renegotiating your loan terms. Since interest rates can change from one day to the next, just like your credit score, you want to make sure you take advantage of any changes that occurred and maximize your savings. Consider some of the following ways refinancing your loan can help you save.

Flexible Payment Terms

Many people have found that refinancing their auto loan provides them with more flexible payment terms. As an example, let’s say you purchased a new car under a short-term loan of maybe two to three years. You might find that the payments can be somewhat expensive and difficult to make. In this situation, refinancing your loan will allow you to reduce your monthly payments and keep more of your money in your pocket.

Save Money on Interest

For some individuals, they purchased their vehicle when there credit wasn’t at its best. As a result, the interest rate and payment terms weren’t exactly ideal. By making timely payments and building your credit, you are eligible to refinance the loan and get new payment terms that are more in line with your situation. Reducing the interest rate on your loan can save you more than what you might realize when it comes to your auto loan.

Renegotiating Your Lease

If you found yourself in a lease that is less than what you expected, refinancing might be the best way for you to get out of it. You can use refinancing to actually buy the lease out. In turn, you are going to make all of your payments to the actual lender instead of the leasing company. In addition, when the payment cycle ends, you are actually going to own your vehicle. Not only are you saving money by renegotiating your terms, but you are actually working towards a final goal of owning something.

If you are worried about getting approved for car refinancing, don’t be. The process is extremely simple and quick. All you have to do is submit the application through RefiPayment and you can be approved in a matter of just a few minutes. At RefiPayment, the process is simple, convenient and quick. We work hard to get you the auto refinancing you need so you can keep more of your money.

Our team of specialists will walk you through the process from start to finish, so you don’t ever have to feel confused or unsure of what you should be doing. The process is straightforward. We don’t complicate things for our customers. Knowing what you are going to get ahead of time is important, which is why we have an auto refinance calculator that allows you to see what you are going to get when you refinance your loan with us. In a matter of seconds, you can see just how much money you are going to save on your auto loan. It doesn’t get any easier than that.

You have nothing to lose and everything to gain. Apply now, or give our team of experts a call today and let us go to work for you.

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