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If you are looking to refinance your car loan, you may be wondering what the qualifications are. What do lenders look at–your car, your credit, your existing loan? Yes, yes, and yes. But let’s look at what specifically is important and what you can do to give yourself the best chance for a vehicle refinance.Here’s what lenders look at when you refinance your auto loan.What do they look at when you refinance a car?When you look to refinance a car loan, lenders look at three main factors: the vehicle you are refinancing, your credit score, and your existing loan. There are certain qualifications they look for in each category.Your VehicleTypically there are a few vehicle requirements when you want to refinance your car loan. They will vary from lender to lender, but generally your car should be:Less than ten years oldHave less than 100,000 miles on itBe worth more than the loan is for (your loan should not be “underwater”)If you are unsure if your vehicle qualifies for refinancing, our agents at Auto Approve can help you! You can also use our online quote form to get an answer quickly.Your FinancesYour credit score and financial history will have a huge effect on your ability to refinance your car loan. Lenders want to know that you are financially responsible and that you will be able to pay back your loan in full. Your Existing LoanLenders will also look at your existing loan when they are determining your eligibility for car loan refinance. Mainly they want to see if you are making full and consistent payments on your existing loan. They will also look to see how much time you have left on your loan. They will not want to refinance typically if you have less than a year on your loan.You should also take a close look yourself at your existing loan when determining if car loan refinance is right for you. Your existing loan may have prepayment penalties that can add up (and ultimately make refinancing less lucrative for you). Make sure that there is also enough time left on your loan to make refinancing worthwhile. The more time that is left on your loan, the more you can save with a car loan refinance. Do they check your credit when refinancing a car?As we mentioned before, your credit score is one of the most important things they check when deciding if you qualify for a car loan refinance. They want to make sure that you are able to repay the loan, and your credit score is the best indicator of that. Your credit score looks at five major factors in your financial history:Your payment historyYour amounts owedYour length of credit historyYour credit mixYour new creditAll of these factors indicate how likely you are to repay your loan. The higher your credit score is, the more likely you are to get a good car loan APR and get favorable terms. The best car loan APRs are reserved for those with good and excellent credit (with a score over 740). If your score is below 740, you can still qualify for car loan refinance, but your rate might not be as good.If you are interested in car loan refinance we recommend taking the following steps to get your credit score in top top shape before applying.Request a copy of your credit report and review it for any errorsCommit to making full and on time payments to all of your accountsPay down debts that have a high credit utilization ratioRequest higher limits on your accountsAsk to become an authorized user on a loved one’s accountHold off on opening any new accounts until after you refinanceHow do you refinance a car loan?Car loan refinance can help you in a lot of ways. It can save you money by lowering your car loan APR, it can give you breathing room by allowing you to stretch out your repayment plan over a longer period of time (thus making your payments smaller every month), and it can allow you to add or remove a cosigner. The biggest advantage of car loan refinancing is you can save a lot of money. Refinancing to a lower car loan APR can save you a lot of money over the life of the loan. Shortening your car loan repayment to a shorter timeframe can also save you a lot of money by reducing the overall amount of time you are paying interest.If car loan refinancing sounds like a good idea for you, it’s super easy to get started!Step 1: Gather all of your information.Get all the information you may need in one spot. This will include the following:Your information (your ID, social security number, and proof of residence)Your car’s information (the make, model, year, VIN, and mileage)Proof of income (such as recent pay stubs) Proof of insuranceLoan information (all of your existing loan information including the balance and the lender’s contact information)Step 2: Look for lenders and applyYou should aim to apply to 3-5 lenders for your car loan refinance. Look into traditional banks, credit unions, and online lenders. Do some research to find out how happy other customers are (using a company that specializes in car loan refinance can make this process very easy). Once you have narrowed your list down you should apply to all leaders at once so that it will only count as one hit on your credit score. Credit bureaus know that people need to shop around so they give people a two week window where all applications will count as one hard inquiry on your account.Step 3: Choose the best lenderWhen the offers roll in you will have to decide which loan is the best for you. Be sure to compare the following:The interest rate. The prepayment penalties. (There is no limit to the amount of times that you can refinance, so keep in mind that you might want to refinance again in the future)Your cash flow and the repayment terms. Customer satisfaction. Hidden fees. When you have compared all of the offers, you can simply sign and start saving. It’s just that easy!That’s what companies look for when deciding if they will refinance your car loan.Car loan refinancing can save you a lot of money. So don’t wait! The sooner you refinance, the more money you stand to save. Get in touch with Auto Approve today to find out just how much refinancing can save you!GET A QUOTE IN 60 SECONDS

If you have a leased car (or are thinking about leasing), you have probably seen the term residual value a few times. But what exactly is residual value, and what does it mean for you?Let’s talk about how car leases work and what residual value is.How do car leases work?Leasing a car is essentially renting a car. The dealership owns the car and holds the title, but they give you temporary ownership for a set period of time. While you have the car you are responsible for maintaining it and not overusing it (a mileage allowance will ensure this). Leases are usually 24-36 months, but they can be longer. While many people in the United States prefer buying cars, more than a few prefer leasing a car instead. In 2022, about one in four cars on the road in the US are leased. So why exactly would some people prefer leasing over buying?Your monthly payments will be lowerWhen you lease a car, your payments will be much lower than if you were to finance it. This is because you are really making payments on the depreciation that will occur while you are leasing the car, not on the total amount of the car.You need less money up frontNot only will your monthly payments be lower, but when you lease a car you will need less money up front. In many cases you can lease a car with no money down. Any fees that you are required to pay can usually be rolled into your monthly payments. You will not need to sell your car afterwardsWhen you lease a car, you can simply hand the keys back at the end of your lease period. You do not need to worry about selling the car when you are finished.You can get a new car every couple of yearsSome people love having the latest and the greatest, and leasing can allow you to get a new car every few years. This makes it easier to stay up to date with the latest technology (and who doesn’t love the smell of a new car?)You can maximize tax deductionsIf you are a business owner or are self employed, leasing a car will provide more tax advantages than buying a car. When you lease you can write off both the depreciation costs and the financing costs, which is usually more than you can write off when you purchase a car.What is Residual Value?There are a lot of terms that you should be familiar with when you decide to lease a car. Lease payments are calculated as follows: Capitalized Cost - Capitalized Cost Reductions - Residual Value + Interest + FeesLet’s take a look at what these terms mean. Capitalized CostThis is the actual price of the car which will serve as the basis for all of your lease payment calculations. This price can be negotiated, just as you would negotiate if you were buying the car outright.Capitalized Cost ReductionsCapitalized cost reductions are any discounts that the dealership may apply to your lease. This includes any rebates, incentives, and upfront capital that you may put into your leased vehicle.Residual ValueThe residual value of a leased car is the expected value at the end of the lease term. Money FactorThe money factor is the financing charge of the lease. This number is a small decimal that might feel foreign to most people, so multiplying it by 2400 can give you an equivalent APR.How is Residual Value Calculated?One of the most important factors in your lease is the residual value of the car. The residual value of your leased car is based on three factors:The capitalized costThe lease termThe residual lease value percentageThe capitalized cost of the car is simply the sale price of the car. Your lease term will depend on what you select, but it is typically 24-36 months. The residual lease value percentage is somewhat subjective. It is what the car is expected to depreciate over the life of the lease.If you have a leased car with a capitalized cost of $30,000, and the car is expected to decrease in value by 50% over your three year lease, then the residual value of your car is $15,000. The residual value of your lease is important for two main reasons:It will determine what the monthly payments on your leased car will beIt will determine what the buyout price of your car will be at the end of the lease termUnfortunately you are usually not able to negotiate the residual value of your car. It is typically a standard price based on what the dealer believes the resale will entail. But you can negotiate on the capitalized cost of your lease. Should I Buy My Leased Car?When your lease ends, you might be wondering what options you have. You ultimately have three choices when your lease ends. You can keep leasingIf you like leasing, you may simply want to continue leasing a car. You can simply return your current car and resign for a new lease with a new car. This is the simplest option for most people and iit is also the best option for most dealerships. When you keep leasing, you will restart (and negotiate) with a new car, and the dealer can sell your old lease as a certified pre-owned car. In order to return your car with no fees or issues, you will need to return your leased car in good condition and without going over your mileage allowance. If there is significant wear and tear, noticeable damages, or you have gone over your mileage allotment, this could mean you owe the dealership money. You can end your lease and walk awayIf you aren’t happy with leasing, you can also choose to turn in your lease and not lease again. Again, in order to return your car with no fees or issues, you will need to return your leased car in good condition and without going over your mileage allowance. If there is significant wear and tear, noticeable damages, or you have gone over your mileage allotment, this could mean you owe the dealership money. You can buy your lease outBut maybe you don’t want to say goodbye to your car. Or maybe you know that you have racked up a lot of miles (way over your allotment) and you are going to owe some serious fees. Or maybe you know that there is quite a bit of wear and tear and you will similarly face some big fees. Whatever your reason is, a lease buyout is often a great solution at the end of your lease. How to decide which is best for youIf you are trying to decide what is the best option for you at the end of lease, there are some questions you can ask yourself to help decide.  To decide if you want to keep leasing, ask yourself the following: Do I like leasing?Have I been able to stay under the mileage allowance?Have I been able to avoid major wear and tear?Do I like having a new car?Am I ok not being able to customize the car to make it my own? If you answer yes to most of the above questions, then leasing again might be a good move. To decide if giving up your lease and moving on is a good idea, ask yourself the following questions: Do I dislike leasing?Is it hard staying in the confines of the lease agreement?Am I indifferent when it comes to having a new car?Do I have another way of getting around (a different car or a public mode of transportation?) If you answer yes to most of these questions, then returning your lease and moving on might be a good idea for you. But for many people, a lease buyout will be their best option. This is because today’s used car market has a lot of demand. That means your car’s resale value is almost guaranteed to be much higher than your residual value. In other words, you will be able to buy your lease for much less than you will be able to sell it for. Ask yourself the following questions to decide if a lease buyout is right for you. Do I like my car and want to keep it?Do I want to sell my car privately and make a profit?Have I gone over my mileage allowance that will result in major fees?Do I have significant wear and tear that will result in major fees? If the answer is yes to any of the above questions, a lease buyout is probably the best option for you. And a lease buyout loan is an easy way to achieve this.That's how car leases work and how you can decide if buying out your car lease is a good idea. Auto Approve specializes in car lease buyout loans and can help you decide if a lease buyout is right for you. Contact Auto Approve today to chat with one of our agents today! GET A QUOTE IN 60 SECONDS

Car loan refinancing can help you save a lot of money. By refinancing your existing loan you can get a lower car loan APR and change your repayment period. But when you choose to refinance, will it affect your credit score? Here’s what happens to your credit score when you refinance a car.How are credit scores calculated?Credit scores are three digit numbers that are designed to tell lenders how likely you are to repay your debts. They indicate how financially stable you are. FICO credit scores are the most popularly cited scores, but FICO is merely a type of credit score model (FICO stands for Fair Isaac Corporation, the company that helped pioneer credit scoring). Most agencies use either a FICO model or a variation of it for credit score calculations.Credit scores take a look at five major categories in your finances. Each category is weighed differently, but each part is important to ensuring that your score is as healthy as possible. Credit scores are calculated by looking at monthly reports that are sent to the three major credit bureaus (Equifax, Experian and TransUnion). Many different organizations send reports to the bureaus, including:Mortgage lendersAuto loan lendersCredit card companiesPersonal loan lenders Medical billing collection agenciesUtility companies typically do not send reports, but missing utility payments can result in reports to a collections agency (which will be reported). The credit bureaus take all of these reports and break the information down into the following categories. Your Payment History (35%)Your payment history is the most important factor in your credit score, accounting for 35% of your total score. Do you pay your accounts on time and in full, or do you miss payments? If you have had a missed or late payment, its affect on your score will depend on:The amount you’ve missedHow recently you’ve missed a paymentHow frequently you’ve missed paymentsEnsuring that you make consistent, full, and on time payments will have the greatest positive effect on your credit score.Your Amounts Owed (30%)This is the second most important category for your credit score, accounting for 30% of your credit score. The amounts owed category looks at how much money you owe, how much money you have available to you, and the number and types of accounts you have. The most important factor in this is your credit utilization ratio, which is a ratio of how much money you owe compared to how much money you have available to you. This looks at individual accounts as well as your total debt and total line of credit. Your ratio should be less than 30% for each account as well as your overall amounts owed.Your Length of Credit History (15%)The length of your credit history makes up 15% of your credit score. This category looks at how long your accounts have been open and active. How long have you had your accounts open and how long has it been since you’ve used certain accounts? The longer you have a history of having open accounts, consistently using them, and consistently paying them, the higher your score will be.Your Credit Mix (10%)Your credit mix accounts for 10% of your credit score. Your credit mix looks at how diverse your credit accounts are. Lenders like to see that you can manage payments for a number of different accounts. Healthy mixes typically include installment loans, mortgages, car loans, credit cards and retail credit cards. The better the mix, the better your score will be.New Credit (10%)Your new credit counts for 10% of your credit score. This category looks at how many new accounts you have. If you have new accounts that you haven’t proven that you can consistently pay, it will count against you. New accounts are like unanswered questions to credit bureaus.Does refinancing a car hurt your credit?When you refinance a car it will affect two categories in your credit score: your length of credit history and your new credit. Because it will be a new loan, it will shorten your length of credit history, which can cause a minor dip in your score. It will also be a new credit on your account, so your score will lower because it's new. Refinancing your car means that you will also have hard inquiries on your account. Hard inquiries will also cause a dip in your score, typically between five and ten points. It is temporary however, and they usually wear off in about six months. So, does refinancing a car loan hurt your credit? The answer is yes and no. While it will affect these parts of your score, it can also help your credit score greatly by saving you money and making your payments more manageable.Refinancing saves you money so you can pay off more debtIf you are able to refinance your car loan to a lower car loan APR, you can save a lot of money over the course of your loan. And those savings can be used to pay down other debts you have. These payments can lower your credit utilization ratio, which can significantly improve your credit score.Refinancing can help you make more consistent paymentsIf you are having trouble keeping up on your monthly payments, refinancing can help you by lengthening your repayment plan. When you lengthen your repayment plan you have more time to pay off your loan, which significantly lowers your payments. If you can stay more consistent on your payments you will increase your score a good deal.What is a good credit score to refinance a car?Credit scores are broken down into five categories: Exceptional (Super Prime): 800-850Very good (Prime): 740-799Good (Near Prime): 670-739Fair (Subprime): 580-669Very poor (Deep Subprime): 300-579The better your credit score is, the better car loan APR you will be offered. The best car loan refinance rates are offered to those with very good and exceptional credit scores. But that doesn’t mean that you will be unable to refinance if your score isn’t quite that high.If your credit score is better than it was when you originally financed and/or the market rates are better than when you initially financed, there’s a good chance you will be able to qualify for a better car loan APR.That being said, it’s best to work on your score to get it in the best shape possible before you start the refinancing process. Work on making consistent, on time paymentsIf you have a habit of making late payments, try to fix this as soon as possible. Sign up for autopay on your bills if possible to ensure you don’t miss a bill and look for ways to keep up on full payments. Are there areas of your budget where you can make sacrifices to save a bit of money? Canceling unused or unnecessary subscriptions and switching to generic brands are just a few ways you can free up some extra money and ensure you are making full payments on all of your accounts.Request higher credit limitsContact your credit card companies and ask for higher credit limits. This will automatically give a boost to your credit score by reducing your credit utilization ratio.Avoid opening new lines of creditAny new accounts that you open at this time will adversely affect your credit score, so try to resist opening anything new until after you refinance your car loan.Ask to be an authorized user on a loved one’s accountIf you have a friend or family member with a great credit score, becoming an authorized user on one of their accounts can give your credit score a boost. Their on time payments and low credit utilization ratio can help to give yours a boost.Request a copy of your credit reportIt’s a good idea to request a copy of your credit report at least once per year to ensure that there aren’t any mistakes or errors. A missed payment marked in error can have a significant effect on your score, so it’s good to regularly review your report and make sure everything is accurate.When you decide to refinance your car, be sure to apply to all lenders in the same two week time frame. Credit bureaus know that people need to apply to different places in order to compare, so they give a two week window where all hard inquiries will count as one inquiry (and therefore only affect your credit score once.Refinancing a car loan can cause a slight dip in your credit score, but it can also help your score in the long run.Refinancing your car loan is super easy when you use a company that specializes in car loan refinance, like Auto Approve. So what are you waiting for? Get in touch with Auto Approve today to see how much money you could be saving!GET A QUOTE IN 60 SECONDS

When you refinance your car loan, you essentially restart your car loan with new terms and a new car loan APR. And this can translate to a lot of money in savings. But just how much can auto refinancing save you, and how do you decide the time is right?Here’s how much money you can save by refinancing your car loan.Does refinancing a car loan save you money?Refinancing to a lower car loan APR saves you moneyThe biggest way that you can save money is by refinancing your car loan to a lower car loan APR. You may qualify for a lower car loan APR if any of the following apply to you:The market rates have decreased since you initially financed your car.Your credit score has improved since you initially financed your car.Your debt to income ratio has improved since you initially financed your car.You are adding a cosigner to your car loan who has a good credit score.Your credit score is the biggest factor that lenders consider when they are determining what car loan APR to offer you. Credit scores are designed to tell lenders how much of a credit risk you are. The higher your credit score is, the more likely you are to repay your loan (at least in the eye of the lender). So while you do not have control over the market rates, you do have control over your personal finances and your credit score. Your credit score is determined by looking at the following categories of your finances:Payment history (35%)Amounts owed (30%)Length of credit history (15%)Credit mix (10%)New credit (10%)Your payment history and accounts owed are the two most influential sections of your credit score. Therefore paying attention to these categories will help you increase your score the most. If you are interested in refinancing, it is a good idea to ensure your credit score is in top shape before applying for refinance. Commit to making full, consistent, on time payments to all of your lenders, pay off accounts with a high credit utilization ratio, request higher limits on your accounts, avoid opening new lines of credit, and review your credit report for any errors. All of these steps can help improve your score, which will lead to a better car loan APR when refinancing a car.But just how much money can you save with an auto refinance? Let’s look at an example. You initially financed $25,000 with an 8% car loan APR to be repaid over 5 years. Your monthly payments are $506.91. Over the course of five years you will pay $5,414.59 in interest alone. But let’s say you improve your credit score and you are able to refinance your car loan to 5%. Now your monthly payments are $471.78 and you will pay a total of $3,306.85 over the life of your loan. That’s over $2,000 in savings. And who couldn’t use that kind of extra cash?Refinancing to a shorter repayment period saves you moneyWhen you refinance your car loan, you can change the repayment period. You can either lengthen the repayment period or shorten it, depending on your financial needs. If you want to save money in the long run, shortening your repayment period will mean that you will pay less in total interest over the life of the loan, but your monthly payments will ultimately be higher.Let’s look at the same example from above. You initially financed $25,000 with an 8% car loan APR to be repaid over 5 years. Your monthly payments are $506.91. Over the course of five years you will pay $5,414.59 in interest alone. But if you were to refinance to a loan period of 4 years instead of five years, your monthly payments would rise to $610.32. With one less year of interest payments, you would only pay $4,295.51 in interest. That’s a savings of over $1100, even if you don’t qualify for a lower car loan APR. If you qualify for a lower car loan APR on top of that, the savings add up even more.Refinancing to a longer repayment period saves you money on monthly paymentsIf you are having trouble making your car payments every month, lengthening your repayment period can significantly reduce your monthly payments and give you a lot more breathing room every month. Let’s consider the above example in reverse. If you initially had a $20,000 loan with 8% APR over 48 months and refinanced to 60 months, your monthly payments would reduce by over $100. While you would end up paying more in the long run, you would give yourself a lot of breathing room every month. By making your payments more manageable, you would give yourself more money to pay other bills and pay down other debts, which can ultimately improve your credit score.What do I need to refinance my car loan?Refinancing your car loan is easy and doesn’t require too much. The first step is to see if you qualify for a car loan refinancing. Requirements will vary from lender to lender, and eligibility typically depends on:How old your car isHow many miles your car has on itHow much money is left on your loan There may be other factors at play, but generally the older your car is and the less it is worth, the harder it will be to refinance your car loan. If your car is ten years or older or has over 100,000 miles you may not be able to refinance. Also if you do not have a lot of time left on your loan, lenders might not feel it is worthwhile for them to refinance your loan. Auto Approve can help you determine whether or not you are eligible for refinancing. If you are eligible, you want to shop around with different lenders and compare before applying. You won’t have specific terms and rates to compare, but you can look at customer satisfaction ratings and reviews to get a sense of what each company is like. You can refinance a car loan with a traditional bank, a credit union, or an online lender. You will want to apply to 3-5 lenders so that you can compare and get the best terms. (Be sure to apply to all of them in a fourteen day window so that they all count as one hit on your credit report.)The following documents are typically required when you refinance a vehicle.A Photo ID, such as a passport or driver’s license.Your vehicle’s information, which may include the bill of sale, VIN number, make, model, and year of your car.Proof of income and financial history, which may include pay stubs, banking information, and your credit report.  Proof of residence, such as a mortgage statement, lease agreement, or utility bill. Note that PO boxes are not acceptable as proof of residence.Proof of insurance.While you can apply for car loan refinancing on your own, it’s much easier to use a company that specializes in car loan refinance. They will have preexisting relationships with lenders that can result in the best deals. And since they specialize in refinance, they are more than ready to help answer any questions or issues you may have.When should you refinance a car loan?So how do you know if the time is right to refinance your car loan? While you can refinance your car loan at any time, it is more beneficial to do so at certain times. The time is right to refinance if:Your credit score has increasedMarket rates have decreasedYour debt to income ratio has improvedYou have had your existing loan for at least six monthsYou have more than two years left on your existing loanYou want to add or remove a cosignerIf some (or all) of these conditions apply to you, the time might be right to refinance. You can refinance before six months, but waiting six months to a year will give your credit score a chance to rebound from your last financing inquiry. It will also give you a chance to establish a good payment history, both of which will help you secure a better car loan APR. New lenders will appreciate seeing your on time payments to your existing car loan.The time might not be right to refinance a car if:Your credit score has decreasedMarket rates have increased significantlyYour debt to income ratio has gotten worseYour loan is brand newYour loan period is almost over.If you are wondering if the time is right, contact Auto Approve to speak with one of our agents.And that’s how much money you can save by refinancing your car loan.So if you are asking yourself “why do people refinance auto loans?” the answer is simple–it can save people a lot of money. Contact Auto Approve today to see just how much money you can save!GET A QUOTE IN 60 SECONDS

Leasing a car is a popular option for a number of reasons. Lease payments are generally cheaper than financing payments, you can get a new car every few years, and you don’t have to deal with a lot of the hassles of car ownership when you simply lease. But what if you don’t have your heart set on a new car? Is it possible to lease a used car and save yourself some money?Here’s everything you need to know about leasing a used car.Is it better to lease a new or used car?While some people love to buy new cars so that they have an asset at the end of their payment period, there are a lot of benefits to leasing a car instead. You will have lower monthly payments. Your monthly payments will be lower when leasing as opposed to buying. You don’t have to worry about selling your car when you want a new one. When your lease is over, you can just hand your keys back to the dealership and walk away.You can get a new car every few years.You can maximize tax deductions if you are a business owner.But how do you decide between leasing a new car and leasing a used car? Leasing a used car has one main advantage: it’s a lot cheaper. Not only will your lease payments be cheaper, but your insurance will most likely be cheaper. But it’s not without its downfalls. Leasing a used car has a few downsides:Your car may not be under warranty anymore, so you may be on the hook for all repairs.Used cars typically have higher interest rates (money factors) than new cars.You may have limited options due to today’s used car market.Your car will have wear and tear, as opposed to a new car.You will still have mileage usage restrictions.But all that being said, it is still cheaper to lease a used car. Although the interest rate may be a bit higher, the car will have a much lower residual value. Residual value is what the car is expected to be worth at the end of the lease period. Since a used car will have already gone through its biggest depreciation period, the car will be worth much less (therefore your monthly payments will be much less).How do you lease a used car?If leasing a used car sounds like a good option for you, it’s pretty easy to do. Here are our steps for leasing a used car.Determine your budget.Whether you are buying or leasing, determining a realistic budget is the most important step. Look at your monthly budget and see how much you can afford in car lease payments. Experts recommend spending no more than 20% of your total monthly income on transportation expenses. This includes car payments, gas, maintenance, parking, tolls, and any other expenses that may come with owning or leasing a car.Make sure your credit score is in tip top shape.Having a good credit score will help you to secure the best interest rate for your car lease. To make sure your credit score is in the best shape possible, be sure to do the following:Commit to making full, consistent, and on time payments to all of your lenders.Request higher credit limits on your accounts.Request a copy of your credit report and check for any errors or inconsistencies.Avoid opening any new lines of credit.Become an authorized user on a friend’s account.Pay down debts with high credit utilization ratios first.Shop around to different dealers.You will need to find dealers that lease certified pre-owned cars, but they are relatively easy to find. It’s good to be a little flexible in what you are looking for, as this will give you the most room to explore and find good deals. There is a lot of demand for used cars in today’s environment, so there will not be as many options for used car leases as you may be hoping. But being flexible and shopping around will help you to find what you are looking for.Negotiate your used car lease.There are a lot of terms that you will be able to negotiate in your car lease. The Capitalized Cost. This is the agreed upon value of the car (essentially the sale price). This is a great place to start negotiating, especially when it comes to how much a used car is worth. A lower cap cost will reduce your lease payments significantly. Sites like Kelley Blue Book and Edmunds are great places to start when determining a fair capitalized cost.The Money Factor. This is essentially the APR on the lease. They are expressed as decimals rather than percentage points, so you may not be as familiar with what a good money factor is. To make it easier to understand you can multiply the money factor by 2400 to give you an approximate APR. For example if the money factor is .00275, you can multiply it by 2400 to get an approximate APR of 6.6%. Some dealers say that this is non-negotiable, but it doesn’t hurt to ask. There may be wiggle room, and you should certainly be aware of what the prevailing rates are before they coerce you into accepting a money factor. The Lease Term. While not necessarily a negotiation, you will have to decide how long of a lease term you want. They typically range from 36-72 months. Keep in mind that if you are leasing a used car, the longer the lease term is, the more likely it is that something will go wrong on your car.Mileage Allowance. As with any lease, there will be a limit to how many miles you can drive per year on your lease. It will be cheaper for you to negotiate this term ahead of time rather than dealing with the overage fees. The Fees. Look to see what fees are listed in the contract. They may vary greatly from lease to lease, but try to negotiate any fees listed.What are the three options at the end of a lease?When your used car lease is over, you will have three options.Return your lease and walk away.Return your lease and get a new lease.Buy your leased car.Lease Turn InIf you are done with your lease and have other plans for your transportation needs, you can simply return your leased car and walk away. You will be responsible for any fees (wear and tear, mileage overages, etc) but once you pay them you will be done with your lease.Get a New LeaseYou can also decide to return your used car lease and get a new lease. This allows you to get another vehicle (new or used) and start over with new terms. This is what most dealerships prefer; they can then sell or lease your old car while getting you into a new lease that you will make payments on.Lease BuyoutIf you really like your car, you can choose to buy your leased car from the dealership. This may be an especially good idea now given how hard it can be to find a new car right now. A lease buyout may make sense if any of the following apply to you:You really like your car.You have excessive wear and tear that you will be responsible to pay.You have gone over your allotted mileage and will be responsible to pay additional fees.Your car is worth more than the buyout price (in which case you can make a profit by buying it and selling it privately). This may be especially true right now. In 2022 the average trade-in value for a leased 2019 car was 33% higher than the residual value of the car listed in the contract.If a car lease buyout sounds like a good idea, you may need to secure a car lease buyout loan. At Auto Approve, we can help ensure you get the best car lease buyout rates possible. We have relationships with lenders all across the country, so we can help you shop around and compare. Lease buyout loans are one of our specialties, so we know a thing or two about getting you the best deal.A used car lease is a great option for many people, and if you chose to buy out your used car lease at the end of your lease period, Auto Approve can help.If you love your leased car, whether it’s a new car or a used car, a car lease buyout may be a great option for you. And when you use Auto Approve, you know you are in good hands. With a 96% would-recommend rating on LendingTree and an A+ rating from the Better Business Bureau, we’ve helped tens of thousands of people finance the cars of their dreams. So don’t wait–contact Auto Approve today to get started!GET A QUOTE IN 60 SECONDS

When you initially finance your car you might not qualify for the best rate. But that doesn’t mean you have to live with a less-than-great car loan. Refinancing your car loan is a great way to get a better car loan APR and better car loan terms. So what’s the best way to refinance, and how can you get started?Refinancing your car loan is a great way to get a better car loan, and using a company that specializes in car loan refinance is the best way to do it.What does it mean to refinance a car loan?Refinancing a car loan is when you replace your existing loan with a new car loan. Your new loan may have a better car loan APR, better repayment terms, and even have a cosigner (or have a cosigner removed).If you are asking yourself “why should I refinance my car loan?”, you can decide if refinancing your car loan is good move by asking yourself the following:Is it possible I can find a lower car loan APR?Am I struggling to make my monthly car payment?A lower interest rateIf the answer is yes to either of those questions, refinancing your car loan may be a great option. You can find a lower car loan APR if any of the following apply to you:Your credit score has improved since your initial financing.The market rate has decreased since your initial financing.Your debt to income ratio has improved since your initial financing. Refinancing is very beneficial when you find a lower car loan APR. When you reduce your rate, you will reduce your monthly payments and save a lot of money over the life of your loan.A different repayment planIf you are having a hard time making your monthly car payments, refinancing can help you change your repayment plan, which can change your monthly payments greatly. Lengthening your repayment period allows you to repay your principal over a longer period of time, making each payment smaller. Note that you will pay more in interest (since you will be paying interest for a longer period of time), but it can be a worthwhile tradeoff if you are having trouble making ends meet every month.Where is it best to refinance your car?There are many places that will refinance your car loan. Traditional banks, credit unions, and online lenders are all great options. You can also refinance your car loan through a dealership, but this is typically the most expensive option. The best way to refinance your car loan is to use a company that specializes in car loan refinance, like Auto Approve. Auto Approve has relationships with banks, credit unions, and lenders across the country, which means they can help you shop around and compare your options quickly and easily. If you choose to refinance your loan on your own, you will need to do a lot of research to determine where you should apply. Then, you will need to apply and compare the different terms and rates that are offered to you. But when you use Auto Approve, this process couldn’t be easier. Auto Approve will handle all of that for you, so all you have to do is sign on the dotted line.When you find the vehicle refinance loan that is right for you, Auto Approve can make sure that your old loan gets paid off and that all of your paperwork is done correctly. Auto Approve will even handle the pesky DMV paperwork for you. How to Refinance a Car LoanIf car loan refinance sounds like a good option for you, it’s easy to get started.Make sure you qualify.There aren’t a lot of qualifications when it comes to refinancing, but eligibility may depend on:How old your car isHow many miles your car has on itHow much money is left on your existing loanIf you aren’t sure if you qualify for refinancing, Auto Approve can help! Our agents can help you determine if you are eligible for refinancing (and can help you figure out how much money you could be saving!)Prepare your finances.A little preparation can go a long way when it comes to refinancing. Car loan refinancing is most beneficial when your credit score and your finances are in tip top shape. Take the following steps to ensure that your score is at its best:Commit to making full, on time payments.Request a copy of your credit report and review it for any errors.Request higher credit limits.Avoid applying for any other lines of credit while you are in the process of refinancingIf you are having trouble with your monthly payments, go through your monthly budget to determine what you can afford to pay. Experts recommend that your monthly transportation expenses (this includes car payments, gas, parking, maintenance, and insurance) does not exceed 20% of your monthly income.Do Your ResearchIf you use Auto Approve, we can handle this step for you. But if you are refinancing on your own, you should try to do as much research as you can. Talk to friends and family to see if they can recommend a lender. Go online and read reviews to get a sense of how competitive the rates are and see how their customer service stacks up. You should aim to apply with 3-5 lenders.Apply. When you have narrowed your list down, it’s time to apply. Send out all of your applications in a two week timeframe (the credit bureaus give you two weeks where all hard inquiries will count as one hit on your credit score). But if you use Auto Approve, we can handle all of the tedious applications for you.Sign and start saving.When your offers come in, be sure to compare all terms. Be sure to compare the following:The car loan APRThe repayment periodThe assorted feesThe prepayment penaltiesThere is no limit to the amount of times you can refinance your loan, so keep prepayment penalties in mind. If they are extremely high it might deter you from refinancing again in the future.Once you determine the best car loan for you, all you have to do is sign and save. At Auto Approve, we can handle the paperwork for you and ensure that your previous loan gets paid off. And that’s it! Auto Approve makes refinancing your car loan as easy as possible.Refinancing your car loan with Auto Approve is the best (and easiest!) way to start saving money.The sooner you refinance your car loan, the sooner you can start saving. So don’t wait! Contact us today to get started!GET A QUOTE IN 60 SECONDS

Auto insurance can be quite expensive depending on who you are and where you live, but it’s an unavoidable cost of driving. Fortunately there are ways to reduce your insurance costs to free up money for other things (the holidays are right around the corner, after all!)Here’s the real cost of insurance and what steps you can take to lower your insurance payments.What things determine the cost of auto insurance?While insurance rates may seem mystifying at times, there are a number of metrics and calculations that go into determining an individual’s insurance premium. Insurance companies look at a number of factors when determining what insurance rates to offer. While some of these factors are within your control, others are not. Here are the top considerations for insurance rates.Your Age. Your age is a huge factor in what you will pay for insurance. Young drivers typically pay the most, while middle aged drivers tend to pay the least. In fact the average amount paid by a teen driver compared to a 50 year old driver is over $5,000. By the time you are 20 this will affect your rate less, and by the time you are 25 your age will not matter as much.Your Driving History. Your driving history plays a big role in your insurance rate. If you have accidents in your past or you have more than a few tickets, you can expect to pay more for car insurance. Insurance companies can see your driving history for the past seven years when they are determining your rate.Your Credit Score. This may not immediately come to mind when you think of insurance rates, but data shows that people with higher credit scores tend to get in less accidents. Therefore if you have a good credit score you will most likely be offered a better insurance rate.Where You Live. Your location affects your insurance rate in two ways: your state’s laws and your zip code. Each state requires different levels of coverage, with some requiring more coverage than others. Each zip code will also have different rate adjustments to account for a number of factors including: high traffic areas, flood zones, high theft areas, wildfires, and more. Insurance tends to be higher in cities than in rural areas.Your Gender. Insurance companies view female drivers as less risky than male drivers, therefore females tend to get lower rates. On average a teen boy will pay over $750 more per year than a teen girl. Your Insurance and Claims History. Lack of continuous insurance coverage is a bad sign for insurance companies and it can make you a riskier customer. Additionally, your claims history affects your insurance rates as well. This includes claims filed against you as well as claims you file yourself. A history of multiple insurance claims will raise your insurance rates. Your Vehicle. More expensive cars are more expensive to insure. If the insurance company needs to replace a more expensive car, they need to recoup the costs.The Amount You Drive. The less you drive, the less your insurance will cost.Your Coverage Level. The amount of coverage you select will have a huge effect on your insurance premium. Covering yourself with the state minimum will be much cheaper than a full comprehensive coverage.Why is car insurance so expensive lately?If your insurance seems particularly high lately, it most likely has to do with on of the following:Your location. Did you move from a rural area to a more populated one? A change of address can trigger an increase.Your credit score. If your credit score has taken a hit lately, it may have caused your insurance company to raise your rates.Your driving record. If you have gotten into an accident lately or have been issued a ticket or two, it may have resulted in an automatic increase. But while accidents stay on your record forever, insurance companies only have access to your last seven years of driving when determining rates.If none of these apply, it might be possible that you simply have an expensive insurance company. You can always call around and compare rates if you feel like you are overpaying.How can I reduce my insurance payments?When looking for car insurance, it’s very important to shop around. Compare rates and policies with multiple companies before committing to an insurance company (be sure to read customer reviews too–if companies have a reputation for trying to weasel out of paying out claims, run the other way).But on top of that, there may be additional discounts out there that may help you reduce your insurance payments if you feel like you are overpaying. Here are some of our top tips for reducing your cost of insurance.Determine if you are eligible for any driver-based discounts. Insurance companies offer discounts if you are a student, if you are in the military, if you are elderly, and they even offer discounts for certain professions. Take a close look at your policy to determine if you are eligible for any additional savings.Change your coverage.The higher your level of coverage is, the more you will pay for insurance. Try dropping your amount of coverage if your premium is too high for you to keep up with. State liability insurance is the minimum amount you can legally carry.Take a defensive driving course.Taking a class that is offered by an accredited driving school can help you lower your rates. This is an especially good idea if you have an accident on your record.Look into usage-based or mileage-based discountsMany insurance companies offer discounts for low mileage. Additionally, many companies have usage-based programs that monitor your driving habits (the speed you drive, how you brake, and what time of day you drive). Improve your credit score.Working to improve your credit score can help reduce your insurance rates. Request a copy of your credit report and check for any errors.Commit to making full, consistent, on time payments.Request higher credit limits to improve your credit utilization ratio.Get a debit card that can help build credit.Refinance your car loan (refinancing your car loan can help you get more manageable payments, which in turn can help your credit score)That’s everything you need to know about the real cost of auto insurance.Insurance is expensive, but shopping around and taking advantage of discounts when you can will help keep the costs under control. And if you are looking to save money in your car budget, think about refinancing your car loan. Refinancing your loan can save you a lot of money, so don’t wait! Get in touch with Auto Approve today!GET A QUOTE IN 60 SECONDS

When times are tough, we sometimes need a quick fix. And when those tough times include being short on cash, it can be hard to navigate. It’s easy to see why a personal loan may be the answer we are looking for. But is it a good idea?Here’s what you should think about when determining if you should take out a personal loan in a crisis.What alternatives are there to a personal loan?Before you decide that a personal loan is the only option, consider what alternatives you may have to come up with the money you need. Do you need a lump sum of money, or are you having a hard time consistently making monthly payments?If money is tight every month, the following might be good alternatives for you.Consolidate to a 0% credit card. If you have good credit, you may qualify for a 0% balance transfer. This will allow you to transfer high interest debt to this new card and save a lot in interest. You typically have 12-18 months before interest kicks in, so this might give you the breathing room to get your finances back on track (but be sure you repay everything in that time period).Refinance your car loan. If you need some extra money every month, you can try refinancing your car loan. Refinancing to a lower car loan APR can save you a lot of money in interest every month. But even if you don’t qualify for a lower car loan APR you can still get some breathing room. When you refinance you can change your repayment plan. Lengthening your repayment will reduce your monthly payments drastically, as you will have more time to pay off the balance.Try to negotiate your bills. If other bills such as student loan payments or mortgage payments are putting a lot of pressure on you, you can call and try to negotiate. They may be able to defer payments for a few months to give you some room. You may be able to set up large bills (such as medical bills) as payment plans.If you need a lump sum of money, the following might be good alternatives for you.Ask friends and family. We get it–it’s awkward to ask loved ones for a favor. But if you are desperate, it might be your best option. If you feel uncomfortable, offer to pay them a small amount of interest so that it doesn't feel awkward.Request a payday advance. Some companies may be able to pay you in advance if you have a good work record.Take a loan from your retirement account. Depending on your account you may be able to take out a loan. For example, if you have an IRA you can take out one loan per year as long as you repay in 60 days.Borrow against your life insurance. If your life insurance has a cash value (sometimes called permanent life insurance) you can borrow against it and you will have the rest of your life to repay. If you do not repay it, the money is simply detracted from your insurance payout when you die.Look into local resources. Local nonprofits and charities might be able to assist you depending on your situation. Is a personal loan a good idea?Whether or not it is a good idea to get a personal loan will depend a lot on your individual situation. In general, it is not a good idea to use a personal loan for your basic living expenses unless you are desperate and have exhausted all other options available to you. This is because personal loans tend to have high interest rates, and if you are having trouble month to month, you will more than likely have trouble repaying your loan in the near future.Under no circumstances should you take out a payday loan. These predatory loans have annual interest rates of well over 300% and can quickly cause a serious problem for you.But if you have nowhere else to turn, a personal loan may be your only option. Especially if you need a large sum quickly. Here are some questions you should ask yourself when determining if it’s a good idea to take out a personal loan.How much will this loan cost me? Think about the interest rate and how much you will be required to pay every month when repayment begins.How quickly do you need the money? Sometimes fast cash is more expensive to borrow, but if you need it immediately you may not have an option.How quickly do you want to repay? The sooner you repay, the less interest you will be responsible for. If you decide that a personal loan is your only option, it’s important to shop around and compare. If you have a good credit score, you will likely have many options open to you. Personal loans are unsecured, meaning there is no collateral to repossess if payment is not made. Because of this, unsecured loans tend to have a higher interest rate than secured loans. Be sure to consider all of the different lending options you have available to you.Credit Unions. Credit unions will consider your credit history, credit score, membership status, and income when determining if you are eligible for a loan. They do not only focus on your credit score, which may give you a better chance if your score isn’t stellar.Traditional Banks. Traditional banks tend to have high credit score and income requirements, but they often have the best rates around.Online Lenders. A good credit score can help you easily secure a personal loan from an online lender. Apply to a few different lenders so you can compare offers. Be sure that you can handle the repayment schedule before you sign. Defaulting on a personal loan can significantly and severely damage your credit score. And damage to your credit score can affect you for a long time.How much money should be in a personal emergency fund?The best way to avoid a personal loan in times of crisis is to have an emergency fund for yourself. No matter what your situation is in life, you should have some sort of emergency fund set up for yourself.You should have three months’ worth of expenses saved up if:You’re young and healthyYou have a stable jobYou do not have dependentsIf you have a partner, your partner is financially stableYou should have six months’ worth of expenses saved up if:You have a lot of expenses and/or a lot of debtYour job is not stableYou have dependentsYou are the sole providerYou should have one year worth of expenses saved up if:You are older or have health issuesYou are close to retiringYou are the sole provider for many dependentsIf you do not fit into one specific bracket, it’s always better to over-save than to under-save. To determine what one month of expenses looks like for you and family, take the following into consideration:Your mortgage/ rentYour utilities (electricity, gas, water, etc)Your car paymentsYour insurance paymentsYour loan payments (student loans, personal loans, etc)Your groceriesYour medical bills and prescriptions Any other monthly expenses (subscriptions, vet bills, etc)Once you know what your savings goal is, try to fit this into your monthly budget. Treating your emergency fund as if it is a bill that you must pay every month will help ensure that you continue to add to your fund consistently. Here are some of our top tips for growing your emergency fund:Add a savings account to your direct deposit. Opening a savings account that is linked up to your direct deposit. You can have a percentage of your paycheck deposited into it so that the savings build automatically.Use a bonus, tax refund, or cash back reward to start your fund. While it’s not an exciting way to use these types of income, it is an easy way to get an emergency fund started with little hit to your monthly budget.Work to trim your monthly budget, and allocate savings to your emergency fund. By cutting unnecessary costs (such as switching to generic groceries, cutting subscription services, and refinancing your car loan) you can create a lot of wiggle room in your budget. Allocating that money to your emergency fund can help you build it up quickly.A personal loan may help you out of a crisis if it’s necessary, but working to build an emergency fund ahead of time can ease your financial burden much more effectively.You can’t plan for emergencies, so sometimes you need to get creative when problems arise. A personal loan can help you out of a jam, but it should only be used when there are no other good alternatives.Working to build an emergency fund can help you prepare for the unexpected. Looking for ways to save money in your budget can help you build that financial safety net. Refinancing your car loan is a great way you can free up money and get your finances on track. To find out just how much money you can save, contact Auto Approve today!GET A QUOTE IN 60 SECONDS

There are a lot of costs associated with driving. Not only do you have car payments, maintenance, gas, and parking, but you also have the added expense of insurance. Your insurance rate is based on many factors, but one big factor in this number is your driving history.Getting into an accident can drastically affect the insurance rate you will have to pay. And if you are struggling with all of your car costs, this can really throw your finances for a loop.Here’s how long an accident stays on your record and how you can ensure an accident doesn’t derail your financial wellbeing.How long does an accident stay on your record?If you get into a car accident, it will stay on your driving record forever. But that doesn’t mean that it will affect your insurance rate forever. While the DMV will keep this information on file, insurance companies are only allowed to see the past seven years when determining what insurance rates they will offer. In general, an accident will affect your insurance rate for three to five years.Accidents and tickets will cause your rates to increase because insurance companies will see you as an increased risk. The more accidents and tickets you have, the more likely you are to file a claim (and the more likely they are to have to pay for you). In fact, insurance companies raise premium rates an average of 42% following an at-fault accident. If the accident is severe enough or involves drunk driving, your insurance company might choose to deny your renewal altogether. What about accidents where you're not at fault? This depends a lot from state to state, and your rate might increase even if the accident was no fault of your own. Some states, like California, make it illegal for insurers to raise your rates after a no fault accident, but this is not always the case.Some insurance policies will have accident forgiveness. This coverage means that if you get in an at-fault accident, your insurance will not increase (the first time, anyway). There are different eligibility requirements for each insurer, and some may not even offer accident forgiveness. But if they do, it’s worth looking into. Be aware however that if your current policy has accident forgiveness and you switch insurers, your accident may affect the rates you are offered by new insurers. In other words, your accident forgiveness doesn’t transfer.How can I lower car insurance after an accident?A car accident can cause a sharp raise in your insurance rates. But there are certain measures you can take to help lower your car insurance. Car insurance discounts can be broken down into five categories: Driver Status DiscountsDriver Safety DiscountsPolicy DiscountsVehicle DiscountsUsage DiscountsDriver Status DiscountsMany insurers offer discounts to drivers based on their age or profession. Some of the most common driver based discounts are:Young driver discounts: Discounted rates for drivers between the ages of 16 and 25 (discount rate varies)Military discounts: Discounted rates for active and retired military members–and sometimes their family members (8-15% discount)Student discounts: Discounted rates for high school and college students (5-25% discount)Professional discounts: Discounted rates for certain professional groups, such as teachers or healthcare workers (2-10% discount)Organizational discounts: Discounted rates for members of certain organizations or alumni groups (2-10% discount)Senior discounts: Discounted rates for drivers over the age of 55 (5-10% discount)Driver Safety DiscountsGood driving habits and practices can save consumers a lot of money. Being accident free is one of the most effective driver safety discounts, but if you have been in an accident there are other available safety discounts. These discounts will vary from insurer to insurer but some of the most popular ones include:Defensive driving discount: Taking a defensive driving course from a registered driving school can help reduce insurance costs (10-15% discount). If you are in an accident, participating in a defensive driving class can help minimize the price increase on your insurance policy.Low mileage and low usage discount: If you do not drive a lot and do not put a lot of miles on your car, you may be eligible for additional insurance savings. Driving less than 7500 miles per year can save you up to 20% on your insurance.Policy DiscountsThere may be specific discounts built into your policy that can help save you even more money.Bundling discount: If you bundle your car insurance with other insurance you have, such as renter’s insurance or homeowner’s insurance, you may be offered a discount (5-25% discount).Early signer discount: If you renew your policy before it expires you may be eligible for a small savings discount (typically around 3%).Pay in full discount: If you pay your yearly premium up front rather than in installments you may be offered an additional discount (5-10% discount).Loyalty discount: If you have been a repeat customer for several years your insurer may reward you with additional savings.Autopay discount: If you enroll in autopay you may be eligible for an additional discount.Vehicle DiscountSome features on your vehicle may make you eligible for additional car insurance savings. Having any of the following features can save you anywhere from 3% to 30% on your insurance.Anti-theft devicesAnti-lock brakesDaytime running lightsAdditionally you may be offered a discount if your car is new.Usage DiscountsMany insurers these days are using tech to track your driving habits, and this can lead to big savings. Allstate Drivewise, Progressive Snapshot, and Travelers IntelliDrive are just three of these programs. These companies give you a device that plugs into your diagnostic system and tracks different usage metrics such as speed, braking, mileage, time of day, and time spent driving. These companies boast savings of up to 30% on your insurance, but research indicates that the average savings is between 6-8%.How can I keep my car payments low?If your insurance increases after an accident, there are a number of things you can try to reduce your insurance payments. But you can also try to reduce your vehicle costs in other ways which can help ease the burden of an insurance increase. And one big way to do that is to lower your monthly car payments. There are two main ways you can do this. You can try talking to your lender and seeing if you can work something out, or you can refinance your car loan.Talk to Your Lender If you are in a tight spot, you may have luck simply calling your lender and explaining your situation. While they will not be able to amend your existing loan, they may help you defer a payment (or a few months of payments). They also may be able to lower your payments temporarily. This may give you the breathing room you need. But it’s important to note that you will almost certainly have to pay for interest on this in the long run, so it may not be very beneficial.Refinance your Car LoanA more effective way to lower your car payments and save money in the long run is to refinance your car loan. Car loan refinance is when you get a new car loan that will replace your existing loan. By finding a loan with a lower car loan APR and a different repayment plan, you can reduce your monthly car payments drastically. You may be eligible for a lower car loan APR if any of the following apply to you:Your credit score has improved since your initial financingThe market rates have decreased since your initial financingYour debt to income ratio has improved since your initial financingEven if you are not eligible for a lower APR, adjusting your repayment plan may help you cut your monthly payments. And if you have been in an accident and your insurance rates have increased, this might be exactly what you need. Let’s say your car payments were originally supposed to be paid off in 24 months. Your loan was for $20,000 with an 8% APR and your monthly payments are around $900. If you were to refinance to a 36 month repayment plan, your monthly payments would reduce to about $625, even with the same car loan APR. That is a huge savings every month that can really help you out of a tight spot. You will end up spending a bit more over the life of the loan since you will be paying interest over a longer period of time, but it might be worth it to have that extra breathing room.Having an accident can affect your insurance, but researching and participating in other insurance discounts can help minimize the damage.An accident can certainly create a kink in your finances, but refinancing your car loan is one way that you can free up some money. Contact Auto Approve today to see just how much money you could be saving every month!GET A QUOTE IN 60 SECONDS

With the holidays fast approaching, many of us are planning our family trips. There are flights to be booked, hotels to be vetted, and rental cars to be reserved. But with so many extra costs around the holidays, you may be wondering if you need to pay extra for insurance when you are renting a car. What’s the deal with renting a car, and do I need to pay for insurance?What is rental car insurance?Rental car insurance is insurance that is offered by the rental company to cover any incidents that may occur while you are renting the car. This coverage may include some or all of the following:Liability ProtectionLiability protection covers you for damages or injuries that are caused by you while you are driving the rental car.Loss/ Collision Damage WaiverA loss damage waiver releases you from responsibility if damage occurs to the rental car (this damage includes thefts and vandalism)Personal Accident InsurancePersonal accident insurance protects you against injuries to you and your passengers that occur while driving the rental car.Personal Effects CoveragePersonal effects coverage protects your personal items from theft that occurs from the rental car.There are a number of different protections that may be offered to you, and some may be worth it to you. But some of these protections may already be covered by your auto insurance or homeowners insurance. Check to see if your personal auto insurance policy includes liability, comprehensive, collision, and personal injury protection, and if that coverage extends to rentals. Check your homeowner's or renter’s insurance to see if personal effects are covered in rental vehicles (they often are).Additionally, your credit card may offer further protection. Credit cards sometimes cover damage or theft expenses that are left over after your insurance pays out. There may be rules and restrictions on this though. It is a waste of money to pay for these protections if you are already covered, so check your policy thoroughly, and call to ask if you are uncertain. Do I need insurance when renting a car?If you do not have auto insurance, you will be required to get rental car insurance. The rental company wants to ensure you have insurance of some kind. If you are already protected through your car insurance and/or homeowner’s insurance, it might not be required–or even necessary–to get rental car insurance. But there are some instances when it might be worthwhile to get additional protection.You want to avoid claims.The more claims you have on your auto insurance, the higher your monthly payments will be. This is especially true if the accident is your fault. If you are worried that an additional claim will cause an increase in your rate that you can’t really afford, it might be worth it to simply pay for the renter’s insurance. You have a high deductible.If your auto insurance has a high deductible, it can still cost you a lot of money if you were to get into an accident. It might be cheaper to pay for renter’s insurance rather than risk an expensive accident.You don't carry comprehensive coverage or collision coverage.Supplementing with loss/ collision damage waiver can help protect you if you only carry liability. Similarly if you have a very low liability coverage limit (such as the state minimum), additional coverage can provide further protection. You are outside of the United States.If you travel out of the United States your auto insurance most likely will not apply, so you will need to get separate rental car insurance.How much is it to rent a car for a week?On average it costs about $20 a day to rent a car in the United States. But this depends a lot on the following:Location where you are rentingMake and model of car you are rentingWhen you bookWhere you pick your rental car upWhere you drop your rental car offHow long you book the car forHow old the driver isAll of these factors will affect the price per day that you will pay when you rent a car. But in addition to that, there are other costs to consider when renting a car. Here are some additional fees (and how you may be able to avoid them.)Damage ChargesIf there are any damages to the rental car when you drop it, you will absolutely be required to pay for them. These damages might be as small as a stain on the upholstery or a dent on the car’s exterior. These are not typically covered by insurance and will instead be charged to you when you check out. To minimize these fees, be sure to do a thorough check of the car before you drive off in it. Point out any marks or dings to the rental company employee and make sure they are marked down. You don’t want to be charged for something that wasn’t your fault.Administrative FeesAs with everything, the rental company will charge you a handling fee. There is little you can do to dispute this, but be aware of what the fees are before you sign any paperwork. Fuel ChargesThe rental agreement will clearly state what your responsibility is when it comes to returning the rental car fueled up. Sometimes they will ask that the car be returned with a full tank, while other times they will ask that it be returned at whatever level the fuel was when you left. Either way, failure to abide by these rules may result in some steep fuel charges. Not only will they charge you a steep rate (rental companies usually charge 133% to 142% of the state gas average) but they will also charge a fee for their trouble.That’s what you need to know about renting a car and rental car insurance.Renting a car can be expensive, but it doesn’t have to break the bank. Be smart and shop around with different rental companies and try to be flexible when it comes to the make and model of your car. Reading through the fine print and ensuring that you aren’t double paying for rental car insurance is also helpful when it comes to saving money.Saving money has never been more important. If you are currently making payments on a financed car, then we have good news! Refinancing your car loan can save you A LOT of money (and it couldn’t be easier!) Contact Auto Approve today to get a free quote and start saving your hard earned money–after all, the holidays are expensive and we need all the help we can get!GET A QUOTE IN 60 SECONDS