After a year that has prevented many from having little or no need to drive, 2022 looks like a good year to get back on the road. Whether you’re looking for a new car or to cut down on monthly payments on your current vehicle, understanding the art of refinancing can save you a lot of money.
If you are thinking of buying a new vehicle, have you decided to buy or rent it? Buying a used car and keeping it after it has been paid for can be the most affordable option. But what if you’re looking to have the features of a brand new car?
Maybe you are looking to cut down on your monthly payments to save some money. Is there a way to refinance your current vehicle? There are many factors to consider when deciding whether refinancing is the right choice for you. We have compiled a list of helpful articles to help you answer all your questions.
Which is better: buy or rent?
Purchase vs. leasing is an ongoing debate without a certain answer. Decide if purchase or lease best for you will depend on your financial preferences and driving needs.
There are pros and cons to both choices. Buying a vehicle means that you will be the owner of the car at the end of the payment plan. But that also means you’ll likely have to commit to higher monthly payments. Although leasing is considered cheaper, you may be limited to mileage limits. At the end of the lease you may also be charged for usury.
Our advice is to consider the primary use of the car, how much you can afford each month, the amount of driving you need to do and whether you might want a newer model in the coming years. Interest rates were significantly lower in 2021, which made automotive financing popular. Check with various banks and loan partners to find the best deal for you.
Why was automatic financing popular in 2021?
There are many reasons why car financing it was so popular in 2021. One of which includes automakers’ desperation to recover from a drop in sales in 2021. The shortage of semiconductor chips for 2021 models it also meant less inventory for some dealers. Now that the market is returning to normal, you may find great deals on 2020 models.
These factors have led to low interest rates, making it the perfect time for customers to take out a loan. While it’s not known whether this trend will continue into 2022, jumping on it now is a great way to ensure your monthly payments are manageable.
Tips on refinancing
If you’ve taken out a loan to pay for your car, there are ways you can reevaluate it to see if you can save some money. Refinancing makes sense if your credit rate has improved or you need to reduce your financial commitments.
Refinancing a car loan means taking out a new loan to pay off the existing loan balance. The new car loan can potentially provide better interest rates and lower monthly payments. Refinancing is an easy process, provided you have all the required information. These can include your current loan details, your vehicle’s VIN and accident history, and documentation of your ability to pay, such as a tax return.
You can also consider refinancing your car loan with the same lender. While you are free to shop around, some lenders may charge a penalty for paying off a loan too soon. If this happens, you can always ask to refinance with your current lender and compare the penalty price with the amount you will save from a new car loan.
How quickly can you refinance your car loan?
Most car loans last up to nine years for new vehicles and up to six years for used vehicles. If you are considering refinancing your car loan, you may be wondering if there is a waiting time after the loan is approved.
Even if there is no set time how long can you refinance a car loan, it is advisable to wait until the title is correctly transferred to the vehicle, which can take from 60 to 90 days.
During this time, you can tidy up your credit score and collect your personal and financial information. Start looking for the best loan terms with the lowest interest rates. If your credit history or debt-to-income ratio was the reason your initial loan was declined or delayed, you may want to consider getting a cosigner for the new loan.
Where to find the best auto refinance rates?
In search of the best auto refinance rates it is not difficult. Most, if not all, financial institutions offer auto loan refinancing services. These include credit unions, banks, market lenders and direct lenders. Refinancing your loan could save you thousands of dollars, so it’s helpful to do your research and carefully consider each lender to find the best auto refinance rates.
You can start by reaching out to your bank to see if they can offer you a better deal for being a customer. Get quotes from different lenders and consider the APR and loan term. Search the Internet for reviews and lenders who may not be physically in your area but serve customers nationwide.
Tips for buying a lease
If you like the current vehicle you are renting, you may be wondering if you can keep it buy a lease. This is an easy process if your lease allows it at the end of the term, which is the most common time to arrange a purchase.
Some contracts have an early purchase option before expiration. This option may include some additional clauses and costs, so it’s best to read the contract or speak with the leasing company before deciding.
Before applying for a lease loan, consider factors such as the vehicle’s current market value, the interest rate you may be approved for, and whether it will save you money in the long run. If you put more miles and wear on the vehicle than allowed in the lease, then a purchase would make sense.
However, if you are unwilling to increase your monthly rate or the vehicle’s current market value is less than the residual value, you may be paying more than the car’s value. In this case, a buyout would not be the best choice. A quick online search to determine market value can help you determine if this is the case.
How Vantage Finance can help you finance your next car
If you have decided that refinancing is the best option for you, Vantage Finance is ready to help you take the next step. We are a virtual finance company with experience in auto loan refinancing. We have helped many customers seek insurance premiums and lower interest rates on their existing vehicles, resulting in significant savings each month.
We have also helped clients connect with reputable lenders to redeem their current lease. You can start your journey by using our online loan payment tool to calculate potential loan payments or contact us for a quote.
Want to see if Vantage Finance can help you reduce your monthly car loan payment? Get in touch with us today and we’ll put you in touch with reputable lenders who can help you.
This article was published by: Trent Welch by title: Everything you need to know about refinancing your car
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