The Right Way To Refinance a car Loan | Refinance Auto Loan

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The Right Way To Refinance a car Loan | Refinance Auto Loan

You know all about how to refinance a car loan step by step read this.

Refinance a car Loan

refinancing a car is a really good way
to save money but you’ve got to

understand how to do it properly in
order to not get screwed so in this

post I’m gonna teach you how to
refinance a car loan and I’m gonna tell

you why you’d want to do it now if you
just found this channel I’m Naksh with

honest finance and I make a lot of
post on different financial topics

that’ll give your life and your finances
more value so feel free to subscribe if

you’re interested or at least give this
post a like and now let’s talk about

car loan refinancing okay so refinancing
a car is not that complicated to do but

I’ve got to break it up into two
different parts which are the why and

the how so that all of this stuff makes
sense so let’s start with why you should

refinance your car loan well the main
reason why you probably want to

refinance your car loan is because you
just want to get a better interest rate

than the current loan that you have
already this is especially true if

you’ve already got a bad rate on your
loan because as long as you’ve made your

payments on time and you have better
credit then you’re probably gonna get a

much better rate and that’s gonna save
you a lot of money because let’s just

say that you currently owe $20,000 on
your loan at 11 percent Interest and you

still have three years left to pay off
the loan well with those numbers you’re

gonna be paying about a hundred and
eighty bucks a month in interest which

is a total ripoff but if you refinance
that loan to let’s say five percent

Interest then you’d only be paying about
$80 a month of interest which is so much

better and that’s still on a three-year
term and on top of all of that stuff


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your monthly payments are also going to
go down and in this case if you really

wanted to pay off the car loan faster
than I would just pretend that your

payment’s were the same as your old ones
that way you’re paying extra on the car

loan and you can pay it off faster now
the other reason why you might want to

refinance your car loan is because you
just can’t afford the payments but pay

attention here because I want you to
understand what you’re doing if this is

the route you’re gonna take simply by
refinancing your car loan and extending

its length your payment’s are gonna go
down even if the interest rate goes up

just a little bit and this is all
because of the length of the loan

because if you’ve got a car loan that
has three years on it and then you turn

it into a six year then you’re gonna
save a lot of money in your monthly

payments even if that interest rate did
go up just a little bit but I would

HIGHLY advise that you don’t take this
route and you just try to make your

monthly payments or just sell your car
because you probably

afford it and the main reason I say this
is because cars are depreciating assets

so the longer you have a loan with a car
the more likely you are that you’re

gonna end up upside down in the loan and
being upside down in your car loan means

that you owe more than it’s worth
which is not a good thing and you’ve got

to understand here that when your car
loan is way too long you’re gonna be

paying too much in interest and your
car’s gonna depreciate a lot faster than

you’re actually paying it off don’t be
deceived by a lower monthly payment

because it’s all a lie if all you’re
doing is stretching out the loan just

try to refinance your car loan to a
length that’s either the same or shorter

than the one that you already have
because that’s going to give you the

best value you’re gonna end up paying
off the car a lot faster you’re gonna

pay a ton less in interest and the risk
of going upside down in your car is

going to go down significantly because
of the shorter loan now I did make a

post on how car loan interest works so
if you want help in that area then

I’ll just put it right here and you can
read that post too now I also want to

mention cash out refinancing which means
that you actually cash out on some of

the equity from your car so let’s just
pretend that you owe $10,000 on your car

but it’s actually worth $15,000 well you
could get a cash out refinance for about

$12,000 that way you get to keep $2,000
for yourself and then you just use the

other ten for the financing that was
already required you can spend the cash

out money however you’d like but I still
want to warn you that cars are

depreciating assets and I want you to
keep that loan as low as you can

you’ve still got to pay interest on the
money that you’re cashing out so just

keep that in mind as well I mean in
theory you could use the cash out money

to pay off loans that have higher
interest rates but I mean seriously

who’s gonna do that just be smart about
the reasons why you want to refinance
your car loan and do the math before you
sign any paperwork so if it were me

personally the only reason why I’d
refinance a car loan is just to save

money on interest and that’s about it
if you have made this far into the

post could you please just comment down
below and say I’m still here so that I

know how many people are still reading
this post thanks so now that you’ve

decided that you want to refinance your
car loan I’m gonna teach you how to do

it so pay attention here now if you want
to get a better rate on your car loan

you’re gonna have to have good credit or
you’re gonna have to find a cosigner

that has good credit there’s no way
around this but as long as you’ve made

your payments on time then your credit
should have gone up naturally you can

get loans with bad credit but trust me
they’re just a total ripoff and you’re

better off just establishing good credit
before you start to borrow money now

if you want to get
the best rates when you’re borrowing

money then you have to have good credit
like I’ve said over and over again and

now let’s move on to finding a lender
which is really easy to do if it were me

personally I just checked my local
credit unions because they tend to have

the best rates or I’d check online which
I’ll talk about in a minute please just

make sure to pay close attention to the
lenders contracts because I don’t want

you paying any prepayment penalties and
I don’t want you to have an origination

fee either trust me you don’t want to
have to pay a fee just for paying off

your loan early and origination fees can
range anywhere from 1 to 6 percent of

the total of the loans value so let’s
say that you borrow $10,000 with an

origination fee of 5% well that’s an
instant 500 bucks that you’re just

wasting because of that fee and please
if you do refinance your car and it

happens to be around the same time that
your current payment is due just make

sure that everything is paid off
correctly because I don’t want you to

accidentally have a late payment just
pay attention to that kind of stuff

because accidents do happen especially
when the timing is not perfect now as

far as online lenders go I would highly
recommend checking out light stream

loans because they’ve got the best rates
that I’ve found and they’ll beat any

competitors rate as well light stream
doesn’t charge any dirty origination

fees and they don’t have prepayment
penalties on their loans as well I

currently have a personal loan with them
and they’ve been really easy to work

with and I did get the money the same
day that I applied which was freakin

sweet
now I’m not sponsored by a light stream

I just want you guys to know that
there’s a ton of crap loans out there

and these guys really do a good job with
being honest with their customers now

I’ve got an affiliate link down in the
description below if you want to check

them out or just go with whomever you’d
prefer just be responsible with how you

borrow money and I promise you you’re
gonna end up in a much better situation

but at least now you know how to
refinance a car the right way now once

again I’m Jason with honest finance and
I make a lot of post on different

topics that’ll give your life and your
finances more value so feel free to

subscribe if you want to or you can
check out some of my other car related

Post over here that’s all

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