Specifically, you could save an average of $1,412 every year by refinancing your current auto loan. However, only 1 in 20 people are actually aware of the option to refinance their vehicle loan or the potential savings involved. In reality, it’s enough to pay off your insurance premiums, go on a shopping spree or even take a vacation! It’s a much simpler process than refinancing your mortgage, with comparable savings.
Think about it: What would you do with an extra $1,412 per year in your pocket?
How Auto Refinancing Saves So Much Money
APRs across varying financial institutions can range between 6-8 percent and there’s typically an additional dealer markup of at least 2-4 percent. This mark-up can be even higher for those whose credit score is near-prime or lower.
When you combine that with the variance in rates among the financial institutions out there, the difference in the rate you are offered can be as high as 10 percent. When you refinance your car loan, you take your existing rate and go directly to a bank or credit union to re-evaluate, take away the dealer mark up and subsequently lower your rate.
How to Refinance an Auto Loan
There are many challenges when hunting for the best rates, the main being a blind search for rates through various online search engines such as Google, Yahoo! or Bing. The advertised rates typically stagger in variance, most of which are actually provided solely to customers with the best possible credit rating of 740 and above. The low-term financing you see in these advertisements do not apply to the average auto buyer looking for financing.
Online tools such as MoneyAisle.com can help the rest of us looking for deals similar to those advertised for refinancing a car loan. They have a network of banks and credit unions who bid live to provide you the best rates on an auto loan, which are usually much lower than the rate you currently have. All you need to do is fill out 7 simple fields–no personal information, credit pull or SSN required.
The MoneyAisle service is free and it’s entirely your choice to proceed. You’ll be offered a number of loan quotes with varying rates and lengths and associated monthly payments, and after you accept a bid, the financial institution will reach out to follow up.
Their product has saved borrowers like Geralinde and Anton, who refinanced both of their vehicles: “These were the fastest $2,000 we have ever made! With the help of MoneyAisle and their incredible service, we got both of our cars refinanced in no time!” Like Geralinde and Anton, there are likely a lot of things that you can do with the extra cash in your pocket. So if you’re one of the many trying to stretch a dollar, try this little known way to put money back in your pocket.
MoneyAisle is an online resource where consumers find great rates on auto refinancing and loans. They run live, reverse auctions (like a reverse e-Bay) for consumers shopping for financial products. Consumers get exclusive rates and instant one stop shopping in a fun, dynamic auction format, and banks and Credit Unions get inexpensive access to new customers, accounts, and loans.
