Who, what, when, where, why and how to refinance my auto loan are rather common refinance questions I’m asked by both my dealership customers as well as visitors to this site.
Below you’ll some of the most common refinance questions and of course, you can ask your own if you don’t find the answer you’re looking below.
Common Refinance Questions
They will provide with up to 4 competing quotes by filling out just one simple application. They work with lenders advertising refinance rates as low as 2.79% (as of this writing). See for yourself and apply if you like what you see. Take a look at today’s rates here -> “Auto Refinance”
They look have lenders that work with a wide range of credit, but really bad credit may not get approved. They offer some excellent refinance rates if you meet their criteria.
In addition, I’d recommend your local credit union. They’ll be more apt to work with you if there are some credit issues and/or if you are refinancing an older vehicle or it has higher miles.
Check out Money Aisle’s Reverse Rate Auction. You’ll not only find local credit unions, but other banks as well. The fun part is watching rates drop as the auction moves forward.
It’s really easy to start an auction and it only takes a matter seconds. The only thing you need to know to start one is your credit score (at least a rough idea of what it is). You can get your score here – Free Credit Score!
I’ve found that local banks are oftentimes not a very good source for refinancing, because they tend to mark up their refinance rates and are not very competitive when it comes to used cars.
Question – I’m a first time buyer and had a cosigner to help me buy, how long do I have to wait to refinance my auto loan?
Answer – Assuming you had no credit or very limited credit at the time of purchase it will typically take a bare minimum of 6 months, with 12 months, or more, being more likely.
Most refinance lenders will still consider you a first time buyer until you’ve had a 12 month payment history on the car.
If you have the 12 months, Money Aisle will definitely be a good source for you under these circumstances. Credit unions are way more likely to give someone with limited credit a good loan with a good rate.
If you had bad credit and needed a cosigner, then it may take a bit longer (maybe 18-24 months) or you may need some money down to help strengthen the deal in the eyes of the lender.
Question – I have good credit, but the dealer told me I’d need to wait 6 months before I could refinance my auto loan in order to avoid penalties. Is this true?
Answer – Excuse me while I chuckle sarcastically. not at the question, but at the dealer that told you this. Definitely read your contract closely before following the rest of this answer to ensure that there is not some very unusual circumstances that I’m unaware of.
Refinance My Auto Loan
More than likely this is simply the finance manager using a ploy to get you to make 6 payments so they will not be charged back the commission they are making from arranging your financing.
Don’t fall for this. You can typically refinance your auto loan at any time. There should be a pre payment penalty clause in the Federal Truth and Lending section of your contract. Most states will not allow a penalty for early payoff.
