Recent car buyers may be able to save money by refinancing their loans. Rates for auto loans have significantly decreased over the past year, and with auto loan refinancing, consumers may be able to lower their current rates throughout the remainder of their loan.
Unlike mortgages, auto loans are extremely simple to refinance. Appraisals are not necessary, and with online services, it is easy for borrowers to check on the status of their application within hours of applying. Borrowers will have to send some paperwork to their lender should they accept an offer, but once the lenders have the necessary information about the car and the loan, refinancing can occur within one or two days.
There may be some additional fees, like a re-reregistration and title transfer fee. Still, the lender may charge further fees, with lenders like Bank of America charging a $200 fee for processing.
If you have met the qualifications for a new car loan over the last year, it should be easy to refinance your auto loans. However, different lenders might have different requirements for the car itself, such as age or mileage. As well, the loan will often have to have at least one year of payments left before refinancing is possible.
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