Pay off your current car loan with an auto refinance.

While most people know the benefits of refinancing their homes, few have stopped to consider refinancing their auto loans. Auto refinance is similar to refinancing your home. You’ll pay off your current loan with a new loan from a different lender at a lower interest rate. As a result, your loan payments will be less and you’ll be able to pay off your loan quicker. Many people choose an auto refinance to lower their monthly expenses or use the savings to help pay off high interest credit card debt.

While you’ll need an appraisal to refinance your home, there is no appraisal necessary for an auto refinance. This is because auto refinancing isn’t based on the value of your car. Auto refinance loans are based on how much you’ll need to pay off your current car loan.

Surprisingly, even people with less than perfect credit histories can refinance their vehicles. Most bad credit borrowers have auto loans with up to 25% APR, but an auto refinance can lower that rate to as little as 6% APR if they’ve made all their current loan payments on time.

Unless you got a 0-3% APR loan, you’ll still be able to benefit from auto loan refinancing. Lowering your interest rate by just one percent can save you hundreds of dollars over the life of your loan. It doesn’t make sense to give your bank any more money than necessary.

Bring your credit score with you when you’re discussing your refinancing options. Many lenders will mislead consumers about their credit scores to trick them into higher interest rate loans.

If you’re in a hurry, auto refinance can be done over the Internet. Online lenders can often offer you an approval in just a few hours if you apply during regular business hours. They’ll even mail out your check the next day.

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