So, the economy seems to be getting back on track. Auto sales are rising, more auto loans are being written, and more buyers seem to be more willing to take on a bit more debt.
What does this mean for you? Well, if you are buying a new car, lower interest rates could mean you could get a really great deal on car finance. However, if you already have a car and have no plans to trade it in for a new one, a new deal on car finance could still be on the table.
How much you are paying on car finance will depend on a number of factors – when you got your auto loan, where you got your auto loan, and from whom you got your auto loan. Your credit rating at the time you applied will have probably affected how much you are now paying in interest as well.
However, just because you have a not-so-great auto loan now, does not mean you can’t do anything about it.
The first thing you need to do is check how much other people are paying on car finance at the moment. You can do this by jumping online and using a comparison site to scan the market. Bear in mind that advertized rates may not be the rates you get.
If the average interest on new loans is substantially lower than what you are paying now, it could be worth looking into refinancing options. Not all lenders provide refinancing as a service, but those that do make it as easy as possible to switch your loan to them.
Next, it’s time to check the terms and conditions of your current auto loan to find out if you will get charged a fee for refinancing. If there is a fee, you will need to work out whether it is cheaper to refinance, or to stick with what you’ve got.
One easy way to work out your best loan option is with an auto loans calculator. This can help you work out how much you are paying now, how much you would pay on a new loan, and how much you could save by switching.
Once you have checked all your options, and compared interest and features, it’s time to read the small print. While it can be tedious, it can save you from making a big mistake, and switching to a loan or a lender that is not suitable.
Then, all that’s left is to make the switch. Your new lender will pay off your old lender, to allow you to make scheduled repayments and pay off your new auto loan – and hopefully save a bucket load of money in the process!
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