The 8 Best Auto Loan Refinance Banks of 2019

auto loan

Refinancing an auto loan means to find a new loan at a lower rate of interest. The main purpose of refinancing is always to save money and get another loan at an interest rate you can afford. Maybe you got a bad deal the first time you bought your vehicle and you had to stick with it for a few months or even years. You have made an excellent decision to refinance your auto loan and I will share a few auto loan refinance banks specializing in dealing with situations like yours.

Here are the best auto loan refinance banks of 2019. Refinance your vehicle to make a truckload of savings in the upcoming years.

1.USAA

USAA offers you a lower interest rate or increases the length of the loan. Besides, there is no rush. Once your refinancing gets approved, you get 60 days to get things in order. And you don’t have to pay a penny in these 60 days. You also get to take your car overseas. There won’t be any change in your interest rate in doing so.

2. CarFinance

CarFinance has been helping auto owners get a better deal since the last decade. On applying online, your loan will get approved or disapproved within a mere 30 minutes. On disapproval, you get a free consultation on how to get your auto loan sanctioned.

During the approval process, experts at CarFinance check your credit history and our loan paying capacity. The maximum amount of your loan approval is based on these two factors. Moreover, CarFinance is also a good auto loan refinance company for entrepreneurs and self-employed people.

3. AutoPay

Last year, AutoPay claims to have helped auto owners by lowering the interest rates by 50 percent and saving $95 per month. These figures are astonishing. The yearly savings come to $1,144/yr. Moreover, the entire auto refinances application process is streamlined. That means, once you begin filling up the application form you will end up in receiving an email from AutoPay either approving or disapproving your request.

4. LendingClub

LendingClub is another loan refinance bank that saves your time and money in paying off the auto debt. With LendingClub there is no approval process. They have pre-made offers that you get to check online. Select whichever offer suitable for you can you are good to go. 

5. Bank of America

With Bank of America, it takes just 60 seconds to get approved and know your new lowered interest rate. Moreover, there is no origination fee. They will approve your application even if the payoff balance on your current loan is more than your vehicles current value. All you have to do is pay the difference to get the auto loan approved.

Conclusion

Before applying for an auto loan refinance, make sure you have good credit. You are simply not going to get a better interest rate with a bad credit history. In that case, you should take some time to look for ways to better your credit score.

Everything You Need to Know About an Auto Loan

Auto financingAn auto loan is the one which is taken for the purchase for a car, be it new or an old one. Every person needs to lend money to buy a car unless the person has enough money to pay the whole amount at once. The moneylenders, in this case, are either banks or auto dealers. Every aspect of the person is taken care of while lending the money for the purchase. The loan is then paid through monthly payments. There are a number of factors on which an auto loan depends, some of them are discussed below.

Auto loans and its various aspects

An auto loan is termed on a number of factors which also includes the person’s credit history and income. Let us look upon some of these factors:

  1. Length of the loan

A loan granted for a four-wheeler is paid from three to seven years. Quite obvious is the fact that the loan which is granted for a longer period will have less monthly installments and vice-versa. However, the amount of money paid in a longer duration longer is more in finance charges.

  1. Eligibility criteria

A loan can never be granted in a haste, in fact there is a whole procedure on which the money lending agencies and the banks work. There are certain a person must fulfill while applying for an auto loan such as the minimum age, minimum salary, employment and the area of residence.

  1. Record of a credit history

It is always good to make sure that the credit report is well-maintained while considering leasing a car or before the purchase of any major product. One can get the reports through various agencies every year.

  1. The need of a co-signer of the loan

When the applicant of the loan does not have any credit history or if the person has a weak credit record the in such a case the money lender always considers it safe that the applicant has a co-signer. It means that the co-signer also has an equal responsibility towards the loan. Whenever there is a delay in the payment of instalment it would cost both the applicant and the co-signer. If in any case, the applicant is not able to pay the loan, then the co-signer is liable to pay the loan. The co-signer must be aware of all these terms and conditions.

  1. Documents demanded by the agencies

A certain number of documents are required without which the file of application is bound to get rejected by the bank or the agency. These documents are:

  • An identity proof such as Permanent Account Number card (PAN), passport or a driving license.
  • Address proof of the applicant which includes, voter ID card or the passport.
  • Photographs of the applicant
  • Documents of the car
  • Income proof of the applicant which is given by the salary slip of the income of three months or six months.

All the above points conclude that the agencies do not require much formalities for a car loan as compared to a mortgage loan. Therefore, a person should prefer an auto loan instead of paying the whole amount of money.