An auto refinance loan means applying for a loan that will pay off the existing auto loan and taking out a new loan with better interest or terms. It is similar to mortgage refinance but is generally a quicker and less complicated process.
Taking advantage of low interest auto loans can result in saving a lot of money on interest payments.
When to Consider Vehicle Refinance
Anyone paying above 5% annual percentage rate (APR) on their vehicle should consider refinancing. Even paying 1% less interest will result in considerable savings over the term of the loan.
