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Are you thinking about refinancing your auto loan, but unsure of what will happen to your credit score? Does refinancing hurt your credit? While credit scores can seem confusing and complicated, it is important to predict how certain financial moves will affect your credit history. Here we will discuss how credit scores are calculated and go over the impact of refinancing. Auto Refinancing will cause a slight dip in your credit score, but it can still be worthwhile and might actually help your credit in the long run.What is Auto Refinancing?Auto refinancing is when you pay off your existing car loan with a new car loan. Your new loan will ideally have more favorable terms that will ultimately save you money (and who doesn’t want that?). To understand how vehicle refinancing will affect your credit, we will need to look at how credit scores are calculated.How are Credit Scores Calculated?Credit scores are used to help lenders assess how likely you are to pay back your debts. Credit agencies typically look at five factors to determine your credit score:Payment History. This is the most important factor in calculating your credit score, accounting for 35% of your FICO score. Do you have a history of on time payments? Lenders want to be sure you will pay back your debt on time.Amounts Owed. The amount of money you owe, your debts, are used to calculate your credit utilization score. This is the second most important factor in your credit score. This is calculated by dividing your total debt by your total credit limit. For example:Let's say, between all of your outstanding accounts, you currently owe $5,000. Your combined credit limit for all of these accounts is $50,000. 5,000/ 50,000 = .1 = 10% Credit UtilizationA credit utilization score below 30% is considered desirable for lenders. This score accounts for 30% of your FICO score.Credit History Length. The age of your credit accounts make up 15% of your FICO score. They look at the age of your oldest account, the age of your newest account, and the average age of all accounts. Having older accounts and a longer credit history is more favorable to lenders.Credit Mix. Having a diverse assortment of accounts is beneficial to a high credit score. A healthy mix might include a mortgage, auto loan, student loan, and credit cards. This indicates to lenders that you can manage your money across multiple accounts. A healthy credit mix accounts for 10% of your credit score.New Credit. The number of new accounts you have opened plus the amount of hard inquiries you have had on your credit account for 10% of your credit score. People often ask, “how long do hard inquiries stay on your credit?”. The answer is about one year. If you have had a significant amount of inquiries in this time period, it might be a red flag for lenders.What is Considered a Good Credit Score?Using the above factors, credit bureaus calculate a credit score for every person with a credit history. Credit scores typically range from 350 to 850. 800 to 850: Excellent credit740 to 799: Very good credit670 to 739: Good credit580 to 669: Fair credit300 to 579: Poor creditPeople with the highest credit scores will more easily be approved for loans and credit applications, and will typically get the best interest rates and APRs.How Will Vehicle Refinancing Affect Your Credit ScoreRefinancing will affect two of the categories used to calculate your credit score: credit history length and new credit. Having a new account will negatively affect your credit history length, and the hard inquiries and new account will also affect the new credit category. BUT it is important to note that hard inquiries only last a year on your credit score, so that will only be a temporary ding. Credit bureaus know that people contact multiple lenders when looking to open an account, so they allow a two week timeframe where all inquiries will count as one hard inquiry. In other words, don’t let fear of lowering your credit score hold you back from shopping around for the best rates.How to Prepare and Reduce Impact on Your Credit ScoreTo reduce the impact that vehicle refinancing will have on your credit, be sure to do your research and understand how credit scores are calculated. Complete all of your applications in a short period of time (under two weeks) so that all hard inquiries will count as one inquiry in the allotted window. Is Refinancing Worth It?This depends entirely on your situation, but it is often worthwhile to take a temporary hit on your credit score to improve your overall financial health. If you refinance and take a ding on your credit, the hard inquiry will only remain on your score for one year. The age of your accounts will also lengthen over time, so your credit history length will not be affected permanently. If refinancing makes it easier for you to keep up on your monthly payments, it may help your credit score in the long run. Should any of the following apply to you, it might be worth looking into refinancing:Interest Rates are Going DownIf interest rates are trending downwards, it might be beneficial to refinance your car loan. Your overall savings will negate the temporary hit on your credit.Your Credit Score has IncreasedIf your credit score has increased, you have a better chance of qualifying for a lower interest rate. Check your credit score at one or all of the three major credit agencies (Equifax, Experian, and TransUnion) and see how your current credit score compares to your score when you originally took out your auto loan.You Need Extra Cash Every MonthIf money is tight, refinancing might alleviate your monthly payments. If you are in danger of making late payments or defaulting on your loan, this will severely damage your credit score. It is far better to refinance and take a small hit than risk defaulting.You Need to Add or Remove Someone as a Co-BorrowerIf you need to either remove or add a co-borrower to your loan, refinancing will allow you to do so.Your Car is Retaining ValueIt is important that your car is retaining its value if you want to refinance. Owing more than the car is worth is called being “upside-down” in your loan. You will have a hard time finding a lender if this is your situation.Whether or not it is worth it to refinance your car loan will depend on your situation, but the benefits of refinancing will often outweigh the dip that you might see on your credit score. If you are wondering how to get approved for auto refinance, Auto Approve can help you compare quotes so you can start saving money today. Contact us today to get the ball rolling!GET A QUOTE IN 60 SECONDS

The word refinancing is thrown around all the time these days. From mortgage refinancing to student loan refinancing, everyone is buzzing with talks of low interest rates. But what exactly is refinancing, and how does car refinancing work? In this article we discuss what refinancing is, how car refinancing works, and discuss how it may be beneficial for you to do right now.What is a Car Loan?A car loan is a secured loan that can help you finance a new or used car. A car loan works in a similar way to other types of loans. A financial institution will pay for your car and you will repay them in monthly installments with an additional fee (interest). Your car acts as collateral and, if for any reason you cannot repay the lender, your car will be taken away. It's because these loans have this collateral that they're considered "secured."What is Refinancing?Simply put, refinancing is paying off an existing loan with a new loan, ideally a loan that has better terms. Refinancing a car to better terms often results in saving money, either in the long run by reducing the payment period or interest rate, or in the short term by reducing monthly payments.What are the Benefits of Refinancing?Save Money with a Lower Interest Rate You may be able to secure a lower interest rate, either because of the current economic climate, or because your own personal financial situation has improved. This is the primary motivator for people to refinance. By lowering your interest rate, you are lowering your monthly payments and will end up saving money over the course of the loan.Save Money with a Shorter Payment Period When you refinance, you may be able to change the terms of your payment period and shorten the period. This can save you money overall, as the sooner you pay back the loan, the less interest you will ultimately pay.Reduce Your Monthly Payments with a Longer Payment Period If money is a bit tight for one reason or another, car refinancing may allow you to lengthen your payment period. This will allow you to pay off the loan over a longer amount of time, reducing your monthly payments significantly. You will end up paying a bit more over the length of the loan because you will be paying interest for a longer period of time, but it can give you breathing room if you need it.When Should You Refinance?When Interest Rates Are LowRefinancing is all about striking when the iron is hot. And by that we mean when the interest rates are hot. Interest rates are adjusted based on how the economy is performing. If the economy is not performing well, or is anticipated to not perform well, banks will lower their interest rates to encourage spending. If interest rates are lower than when you first took out your auto loan, it may be a good time to consider refinancing. Rates are currently very low, so there is a good chance you can get a lower APR now than you could previously.When Your Credit Score Has ImprovedInterest rates are largely dependent on the finances of the applicant. Your credit score is one of the most important factors in securing an auto loan with good terms. Credit scores are generally categorized by the below parameters:800 to 850: Excellent credit740 to 799: Very good credit670 to 739: Good credit580 to 669: Fair credit300 to 579: Poor creditIf your score has increased from good to very good (670 to 740), or from very good to excellent (740 to 800), it could be a great time to consider refinancing. The most favorable rates and terms are given to those with very good and excellent credit. Even if your score has increased within your bracket, but you haven’t crossed into a better category, it still might be worth getting a few quotes to see if you can get a better rate. When Your Income Has Decreased or Your Expenses Have IncreasedIf money is tight due to a loss of income or an increase in other monthly expenses, refinancing might be a good option to give your wallet some breathing room. If you can lengthen your payment period, you can pay off the loan over a longer amount of time, reducing your monthly payments significantly. When Should You Hold Off On Refinancing?When Your Existing Loan Has Prepayment PenaltiesSome loans build in prepayment penalties to offset the lost interest that comes with paying a loan off early. These penalties can be quite high, so it is important to read the terms of your loan and decide if the savings from refinancing will outweigh the fees from prepayment. If you are unsure, call your lender directly to find out how much it will cost.When You Need a High Credit Score for Another ApplicationWhenever you apply for a loan or credit card there is a credit check, and hard credit checks (as opposed to soft checks) and new lines of credit can negatively affect your credit score for about a year.This is because how new your credit is affects your score – but, as long as you maintain a good history of paying on time, this new credit will actually help your score in the long run. And, fortunately, there's a fourteen day window allowed by the big three credit bureaus that allows for all credit inquiries in that span to count as one credit hit.All that said, if you're applying for a mortgage or starting a new lease, it might be wise to wait until after that is settled to refinance your vehicle.When The Timing of Your Loan Isn’t RightWhile you can technically refinance at any time during the life of your loan, there are certain times where it will not make sense or be beneficial to refinance. You’ve had your existing loan for less than six months. It takes some time for your credit score to bounce back after taking out a loan, so waiting at least six months will be helpful if you hope to get a better interest rate than before. If this is your first loan, it is recommended to wait at least a year to prove that you have a history of on time payments.You have less than two years left on your loan. Car loans accrue interest over time. Because of amortization, your earlier payments pay off more interest than your later payments. As you near the end of your loan, you are paying less and less on interest and more and more on principle. The longer you wait to refinance, the less beneficial it will be to do so.How Do You Refinance a Car?If it seems like car refinancing might be a good idea for you, let’s go over how to start the process of refinancing. It's a hassle-free process (especially when you use Auto Approve!) and can save you money in the short and long term.Do Your ResearchMake sure you are as prepared as possible. Request a credit report, which you can do once per year for free, and make sure your credit score is good. Check that everything is accurate on your report. You can petition the credit bureau if there are any inconsistencies or errors. Look at your current loan contract and make sure you are aware of any penalties for which you may be responsible. Call your lender directly if you have any questions or want to review any of the fine print.Apply to a Few Different LendersThe application process is similar to your original car loan application. You will need the following to get started: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. Compare Rates After all of your applications are submitted, you should start hearing back with different car loan APRs and terms. Compare all of your offers and choose the one that gives you the best rate and makes the most sense for your personal situation. When you use Auto Approve for this process, one of our agents will talk you through the best options and help make sure you understand your new contract completely. (Oh, and when you refinance with Auto Approve, there are no mark-ups, so you're actually getting the best rate available every time!)Sign and Start Saving MoneyOnce you have picked the best car refinancing option, sign on the dotted line and start seeing the benefits of refinancing immediately.Refinancing your car loan is a simple process that can save you a boatload of money.Auto Approve can make this process even easier and simpler for you! Just fill out some basic information and we can help you start comparing rates today. We never mark up your rates, because we're passionate about passing the savings right on to you. So if you're thinking, “Boy howdy, I better get to refinancing now!,” contact us today, Cowboy! (Seriously, what are you waiting for?)GET A QUOTE IN 60 SECONDS

Always dreamed of owning a motorcycle, but never been able to pull together the cash to make that dream a reality? Recently bought a hog and wondering if the rate you got was reasonable? Whatever you're looking for, we're here to give you all the answers to your questions about financing and getting a good rate on your motorcycle loan! (Also, does calling it a hog make us sound cool? Please don't ruin this for us.)While buying a motorcycle can be less of an investment than buying a new car, it can still be a significant purchase. New Harley Davidsons start at $10,000, but easily climb into the $20,000 range. So if you really want to get on the open road, but don’t quite have the money, a motorcycle loan might be your answer.Here's everything you need to know about motorcycle loans and financing ratesThe Three Ways to Finance Your MotorcycleIf you don’t have the money in your bank account to buy the motorcycle you’ve been eyeing at the local dealership, there are three different options for financing:Manufacturer FinancingSome motorcycle companies, such as Harley Davidson and BMW, offer financing. And there are some pros to manufacturer financing:You can get financing on both new and used inventory.You can add necessary gear and accessories to the loan amount, such as helmets and protective gear.It's convenient – you can get your motorcycle and financing set up in one day with little hassle.Dealers sometimes run specials to encourage sales, so if you have good timing you may be able to get a nice rebate or decent APR on your new chopper.While there are some good benefits to manufacturer financing, there are also some negatives. Here are the cons to this type of financing:Dealerships have notoriously high APRs. It is important to shop around beforehand to know if you are getting a good deal or not.There are sometimes limitations on what you can finance. Not all models are eligible for financing, and oftentimes the advertised low APRs only apply to certain motorcycles.Manufacturer loans are secured. This means if you fall behind on payments, they can take your motorcycle as collateral. Personal LoanIt is possible to secure financing through a personal loan. A personal loan is an unsecured loan that you can take out through a bank, credit union, or an online lender. Here are the pros of using a personal loan to finance a motorcycle:These loans are unsecured, meaning that should you default, your motorcycle will not be taken as collateral.There are often no origination or application fees.There is often no prepayment penalty if you pay back early.Securing a personal loan can often be a bit more difficult because it is unsecured. Here are some of the cons:You need to be a member if you're financing through a credit union (credit unions often have the best rates for personal loans).You must have excellent credit to be eligible.Rates can be high, as they are unsecured.You may be required to apply in person.A personal loan may be a good option for some, but it does require a great credit score and strong credit history. Motorcycle LoanThe third option for financing a motorcycle is to get a motorcycle loan. Motorcycle loans are offered through banks, credit unions, and some online lenders. While similar to auto loans, they are not interchangeable and you may find that the lender financing your car does not offer motorcycle loans. Motorcycle loans are your best bet to find a lower rate, but this is dictated largely by your credit score and financial history. Additionally, there are often limitations on these loans (for instance, you may not be allowed to buy a used motorcycle, only a new bike). Since motorcycle loans are usually the best bet for getting a good rate, let’s explore them a bit more.Are Motorcycle Loans Different than Car Loans?With both motorcycle and car loans, you are making payments on a vehicle that will act as collateral in case you default on the loan. They both have a similar application process, and the rate for both types of loans are largely dependent on your credit score and financial history. The main difference between these types of loans are the rates and availability.Why Do Motorcycle Loans Have a Higher APR than Traditional Auto Loans?Motorcycle loans tend to have a higher APR for a number of reasons. First off, they are considered recreational vehicles, while cars are considered to be more of a necessity. Motorcycles require more repairs and the motorcycle depreciation rate is higher than a car depreciation rate. Motorcycle crash rates are also higher. All of these factors add up and make for a higher risk loan, therefore lenders charge a higher APR.What are the Requirements for a Motorcycle LoanRequirements for a motorcycle loan are similar to requirements for an auto loan. The lender will look at the following information when choosing whether or not to provide financing:Credit ScoreDo you have a good credit score? Your credit score is especially important when it comes to financing a motorcycle. Because it is a riskier loan, there is a higher threshold of financial stability. According to Equifax, the following credit tier characterize credit scores:800 to 850: Excellent credit740 to 799: Very good credit670 to 739: Good credit580 to 669: Fair credit300 to 579: Poor creditTo secure a motorcycle loan, you will need a good credit score (670 or above), but the best rates will be reserved for those with very good to excellent credit (740 or above).Credit HistoryHave you had other loans, such as an auto loan or a mortgage? Do you make on time payments? Do you have a history of repossession or bankruptcy? Lenders will ask all of these questions when reviewing your credit history to determine whether or not you are a high risk candidate for a motorcycle loan.Debt-to-Income RatioDo you have a high debt-to-income ratio? Mortgages, rents, auto loans, and other personal loans are all considered debts. If the ratio of your debts to your income is high, you are a less desirable candidate for a motorcycle loan. If your debt-to-income ratio is low, this means you are more likely to make full, on-time payments and are therefore a more desirable loan candidate.Down PaymentHow much of your own money are you able to put down on your motorcycle? If you are able to put down a higher payment up front, it shows the lender that you are a serious applicant and more financially stable than someone who does not have any money for a down payment. Condition of the MotorcycleIs the motorcycle new or is it used? If it is new, it is more reliable with less risk of it breaking down. That being said, new motorcycles tend to be much more expensive. The lenders will look at all of this information when determining a rate.Price and Value of the MotorcycleHow much are you paying for the motorcycle, and how much is it worth? The price you are paying compared to the value found on Kelley Blue Book will tell the lender whether or not you are getting a good deal on your motorcycle. This will also factor into the rate of your motorcycle loan.What is a Good Rate for a Motorcycle LoanRates for motorcycle loans vary greatly based on your personal situation. If you have excellent credit, a strong financial history, and can put down an up front payment, you can find rates as low as 3.5% APR. It is important to remember that what is a “good” rate for you might be different than what is considered a “good” rate for someone else. The high risk associated with motorcycles compounded with less than perfect credit can drive your APR up pretty fast. And if you're not happy with your rate, we can help. At Auto Approve, we're committed to finding you the best rate possible for your motorcycle loan. We work as your advocate to track down and compare all available rates and terms to ensure that you are getting the most bang for your buck. Can I Refinance a Motorcycle Loan?Yes! If your credit score has improved since your initial loan, interest rates have gone down, or you just got a bad rate on a manufacturer loan, you can refinance to more favorable terms. If you are wondering how to refinance a motorcycle, Auto Approve can help make it happen. What Not to DoIf you cannot get approved for a motorcycle loan, personal loan, or manufacturer financing, you should wait to purchase your new motorcycle. Avoid the temptation to buy the bike with your credit card. If your credit limit is high enough, you might think this is an easy option, but the high interest rates and penalties can have disastrous results if you fall behind. It’s best to work on building your credit and reapplying when your situation has improved.Financing a motorcycle has stricter requirements than financing a car, but at Auto Approve we can help you find the best motorcycle loan rates available. If you're interested in refinancing your motorcycle loan, contact us today to find your best rate!GET A QUOTE IN 60 SECONDS

Gap insurance (Guaranteed Asset Protection) is optional insurance that kicks in if your car is totaled or stolen. It essentially covers the “gap” between what you still owe on the car and the depreciated value of the car. Let’s look a little closer at how this type of insurance works, and when you should consider getting it.Here’s everything you need to know about gap insurance and when it is worthwhile to have.If you have a car loan, it is possible that the car may be valued at less than you owe on it. This is less than ideal, but it happens often enough with vehicle loans. This becomes a major problem if something drastic happens to your car. If your car is stolen or totaled and the insurance company only pays out what the car is valued at, it might not cover the amount that you have left on your loan. How Does Gap Insurance Work?Gap insurance kicks in when there is a gap between what insurance will pay and what you still owe on the car. Say you take out a loan for $20,000 on your new car, and a few months later your car is totaled while it is parked outside your house. You file a claim with your insurance company, and they agree to pay $17,000. The $3,000 difference is ultimately your responsibility, even though the situation was completely out of your control. Gap insurance ultimately works in conjunction with comprehensive and collision insurance to minimize or eliminate your out of pocket expenses.Do I Need Gap Insurance?Gap insurance is not technically required, but that doesn’t mean you shouldn’t consider it. Let’s look at a few different types of insurance and when they are required:Liability Insurance. This insurance is required by almost every state in the United States (excluding New Hampshire). It is composed of three parts: bodily injury coverage per person, bodily injury coverage per accident, and property damage coverage per accident. This covers any damage you may cause to another driver, their passengers, or their property, including their car.Comprehensive Insurance. This covers the cost of damages to your vehicle if there is a non-crash accident, such as weather damage or theft. Comprehensive insurance also covers damage that occurs if you hit an animal. Collision Insurance. This covers damages to your vehicle if you hit or are hit by another vehicle.If your car is financed, you may be required to get all three types of insurance. Even so, it is possible that this may not cover all of the damages, and you could still owe money on your car even if it is totaled.How Do I Decide If I Need Gap Insurance?If your car is not financed, you do not need gap insurance whatsoever. If your car is financed, it depends largely on the expected depreciation of your car. It is important to remember that cars depreciate rather quickly, losing about 20% of their value in the first year alone. It is always worth checking Edmunds or Kelley Blue Book to see what your car is worth. Here are some factors that might help you decide if gap insurance is necessary: You put less than 20% as down payment on your car. This makes you more likely to end up with negative equity as soon as you leave the dealership. Your car depreciates the minute you leave the dealership, so if you only put down a low down payment, you might immediately owe more than the car is worthYour car is a lease. Some leases require gap insurance in addition to collision, comprehensive, and liability.You drive a lot compared to the average person in your area. This will cause your particular car to depreciate faster. Your car model has a tendency to depreciate fast. Some cars simply lose value faster than other cars, while some cars hold their value extremely well. Gap coverage might be worthwhile if your car model doesn’t hold its value particularly well.Your car loan payment period is long. If your loan is 5 years or longer, there is a higher chance that your loan balance will exceed your car’s market value. Gap insurance can protect you from this depreciation.How Much Does Gap Insurance Cost?Like everything, the cost of gap insurance can vary greatly between insurance companies. If you go through your current provider, you can expect to pay a yearly flat fee of $500 to $700 for the coverage. If you finance through a credit union, you can expect a monthly add on of $20-$40. The following variables will affect the cost of gap insurance:Where you live.Your age.Previous claims history.Actual value of your car and total amount you owe.If your insurance company does not offer gap insurance, you can purchase it as a stand alone policy from another provider. At AutoApprove, we work with lenders to get the best rates on gap insurance possible, usually around $14 per month. As far as insurance coverage goes, it offers a great return of investment should you ever need it to kick in.Is Gap Insurance Really Worth It?You will need to do the math to determine if gap insurance is worth the investment.  First, go online to determine how much your car is worth. Use sites such as Kelley Blue Book and Edmunds to get a value for your make and model. It is best to find an end of year value for each year of your loan.Take a look at your loan terms. See how much you will owe each year, and compare this to what your car will be worth at the end of each corresponding year.Calculate how much gap insurance will cost for each year.Look at the difference in your car’s value and what you owe at the end of each year. Based on this, determine how much gap insurance will save you in the event of a disaster. If there’s a good chance your car will depreciate faster than you will pay it off, you should strongly consider gap insurance. Gap insurance ultimately covers what collision and comprehensive insurance do not cover, and can protect you from depreciation.At AutoApprove, we know that gap insurance can make good sense based on how quickly cars tend to lose their value. We work closely with lenders and help you shop around for the rates and coverage that fit your needs most. So if gap insurance makes sense to you, contact us today to see how we can help.GET A QUOTE IN 60 SECONDS

There are a number of reasons why you might want to get out of your car lease early. Maybe you just lost your job, and the payments are too much to keep up on. Maybe the car isn’t as great as you hoped it would be, and it’s just not fitting your needs anymore. Or maybe, you want to be done with leasing and simply own the car outright. Whatever the reason, you have decided that you need to make a move and get out of your lease as soon as possible. So how do you do it?If you are wondering how to get out of a car lease early, these are the three main options: transfer the lease, return the car, or buy the car.Transfer the LeaseA very popular option to get out of a lease early is to transfer your lease to another person. Websites such as leasetrader.com and swapalease.com can help match you with someone looking to take over a lease. It is important to look at your lease agreement however, as not all leases permit a third party transfer. Furthermore, you must ensure that it is legal to do so in your state. The new lessee must also meet the lender’s requirements. If you are able to transfer the lease, you will most likely be held responsible if the third party stops making payments. You will also be required to pay any transfer fees, which can range from $500 to several thousands of dollars. It is common to offer incentives for people to take over your lease as well. An extra $500 to anyone willing to take over your lease might convince someone who is on the fence that taking over your lease is a good move. All of these costs add up for you however, so be sure to compare the costs between a lease transfer, early termination, and lease buyout.Return the CarThe simplest way to get out of a lease early is to terminate the lease agreement and return the car. This can also be the most costly option. When you terminate a lease early, you may be responsible for all or some of the following:Early Lease Termination FeeEarly lease termination fees vary widely from lease to lease. They are often based on a sliding scale, making it more burdensome to pay off the earlier you are in your lease. For example if you terminate your lease in the first year, you may be required to make three additional monthly payments, whereas if you terminate your lease in the second year you may only be required to make two additional payments. Review your lease agreement thoroughly to determine your responsibility.Remaining Payments on your VehicleYou may be required to pay all or some of the remaining payments on your vehicle. This is potentially the most expensive part of exiting your lease early. If you decide to terminate your lease with 18 months left on your contract and your monthly payments are $300, you may be on the hook for $5,400 in addition to the other fees associated with termination. Any Costs Related to ResaleThe lease agreement will often require you to pay a disposition fee, which covers any costs associated with reselling the car. This could include getting the car thoroughly washed and detailed, fixing any cosmetic dings, and performing any necessary maintenance. This can range from a few hundred to a few thousand dollars depending on the condition of your car. Taxes Associated with LeasingIf there are any additional taxes associated with the lease, you will be required to pay those. This will vary greatly state to state.Negative Equity Between Your Lease and the Current Market ValueNegative equity is when you owe more than something is worth. This is also referred to as being “upside-down” or “underwater”. When it comes to a lease, it means that your monthly payments are not paying down the balance of the lease faster than the car is depreciating. Your lease agreement might require you to pay some or all of this difference in the car’s value.Storage and Transportation of Your VehicleAny costs related to the physical removal and storage of your vehicle will be your responsibility to pay.As you can see, all of the lease termination fees often make this the most expensive and least practical way to get out of a lease early, but it is definitely the most straightforward. Buy the CarSometimes the most financially beneficial way to end a lease early is to buy the car from the lender. If you have the capital to do this outright, you can simply buy the car and pay for any associated fees. If you do not have that amount of cash on hand, you can opt for a car lease buyout loan. Here is how to buy your car from your lease agreement.Determining Your Car’s ValueEvery car lease has a residual value that is listed in the loan agreement. The residual value of a car is based on your car’s expected depreciation over the life of your loan and is predetermined by the leasing company. It is usually non-negotiable. This is the number that you are bound to should you choose to buy your car.It is important to also look at your car’s market value. This is based on the demand for your car, and will give you an idea of how much you can get if you resell the car. It is important to know what the market value is of your car to determine if it makes sense to purchase it. If the residual value of your car is $13,000, but the market value is $11,000, it would mean that you are paying $2,000 more than what your car is worth. Consider these values and determine if a car lease buyout makes sense for you. Maybe you want to keep the car for yourself and you are comfortable with paying for the residual value. Or maybe you want to resell the car, and you will still make money on the transaction based on the market value of the car. Other Considerations for Buying Out Your LeaseBuying your car from your lender can release you from fees that you might otherwise have to pay. Leases often include charges or penalties for the following:Excessive Mileage. Most leases have yearly mileage limits, and if you exceed that mileage amount, you can be paying huge penalties. These penalties can range from $.10 a mile to $.30 a mile, which can add up to several thousands of dollars if you drive a lot. Wear and Tear. When your car is turned in after your lease is over, it is subject to inspection. Dealers will charge you for any external dents, stains to the interior, and anything else they think will hurt resale value. These fees can vary greatly depending on the condition of your car.Disposition Fees. Dealers will usually charge you a disposition fee, which covers all costs associated with reselling your car. Think of all of these fees as money that can be put towards buying your car from your lease. If the fees add up to $3,000, it might make sense to take that $3,000 and use it to invest in the purchase. It is always a good idea to call your lender directly and find out exactly how much it will cost you to buy your car from your lease. Obtaining a Lease Buyout LoanIf you’ve done the math and determined that buying out your lease is the best way to terminate your lease early, you may need to obtain a lease buyout loan. Not all lenders offer this type of loan, but at AutoApprove we work closely with lenders that provide these loans and will work tirelessly to find you the best rate possible. To get a lease buyout loan, you will need to take the following steps:Call your existing lease company. First, find out how much it will cost to buy your car. Tell them you are looking to buy out your lease and see if they provide that service.Shop around for rates. At AutoApprove we can jump start this process for you and help you start comparing rates.Call your existing lease company, again. Give them a chance to beat any competing rates that you may have found.Sign the papers and notify your insurance company. Make sure all of the necessary papers are signed, and tell your insurance company about the new lender. Since you will no longer have a lease, you may be able to reduce your coverage and your monthly payments, as you will no longer be required to have high liability coverage.Keep it or sell it. Now that it’s yours, you can decide if it’s worth keeping it, or selling it and keeping the profit.It is not always easy to get out of a lease early, but there are options available to do so.The best option will depend largely on your financial situation, but it rarely makes sense to terminate the lease outright. Finding a third party lessee or securing a buyout loan will often be the most beneficial options. If you are interested in obtaining a car lease buyout loan, be sure to contact AutoApprove today to get more information.GET A QUOTE IN 60 SECONDS

Leasing a car is a very popular option for many these days. But what happens when you love your car, and you just can’t bear to say goodbye?When your car lease comes to an end, you typically have three options to choose from: lease trade in, lease turn in, and lease buyout. Here, we'll discuss your three options and help you decide if a car lease buyout is the right move for you.What is a car lease buyout and does it make sense for you?In short, a car lease buyout lets you buy your existing car from your lender.When your lease term comes to an end, you have three main options to consider. About three months before your lease end date, your lender should contact you to review your courses of action.Understanding Your OptionsLease Trade InA lease trade in is when you trade your old car in for a new car lease. In this case, you should determine your car’s value and compare it with the lease-end residual value that is listed in your lease contract. If the trade in value is higher (which is rare), you can use the difference to put a down payment on a new vehicle.In most cases, the residual value will be higher and it will make more sense to return the car and start a new lease.Lease Turn InA lease turn in is exactly that; you return your car to the dealer as is. You will have to look at your contract carefully and determine if you are responsible for any fees. An inspection will be performed when you trade in your car and you will be responsible for excessive wear and tear, any dents and dings on the exterior of the car, and any stains or tears on the car’s interior. Excessive mileage fees may also apply, which can add up fast.Lease BuyoutA lease buyout lets you buy your car directly from your lender. If the first two options are less than ideal, a lease buyout might be the right option for you. In most cases, you can buy your car lease at any point during your lease period. If you want to buy out your loan early, you will need to discuss this with your lender as it will affect the residual value of the car. It is often not financially beneficial to buy a lease out early. It is much more common to wait until the end of the lease period to broach the subject of a lease buyout.  How a Buyout WorksA car lease buyout is different than buying a new car. You already have knowledge of your car’s condition so you should have fewer concerns over the investment. The buyout loan amount will also be significantly less than buying a new car. Let’s look at what you should consider when deciding if a lease buyout is right for you.Valuing Your CarFirst and foremost, you should determine the value of your car. There are two main factors that you should consider:Residual Value. Your car’s residual value is listed in your existing loan contract. The residual value of a car is based on your car’s expected depreciation over the life of your loan and is predetermined by the leasing company. This number is usually non-negotiable.Market Value. The demand for your car will greatly affect the market value of your car. If it is a popular make and model, it will have a higher market value. Use websites such as Cars.com, Edmunds.com. Or Kelly Blue Book to determine the market value of your car.When you are buying out your lease, you are bound to the residual value of the car. It is important to know what the market value is of your car to determine if it makes sense to purchase it. If the residual value of your car is $16,000, but the market value is $13,000, it would mean that you are paying $3,000 more than what your car is actually worth. There is no rule on when exactly it is worthwhile to purchase your car, but if the residual value is within a few hundred dollars of the market value, it is probably a fair deal.Additional Buyout ConsiderationsIf you are happy with the residual value of your car, there are a few more factors to take into consideration.Excessive mileage. Have you exceeded the mileage amount allotted in your lease agreement? If so, you will be subject to per-mile penalty fees that can vary from $.10 to $.30 per mile. If you were consistently driving several thousand miles per year over your limit, that can add up to several thousand dollars. If you choose to buy your vehicle, you will not have to pay these fees, so this money can instead be put towards your buyout. Your car’s condition. Your car is subject to inspection when your lease period is up. You will be charged a fee if there is excessive damage, such as exterior dents and dings, interior tears and stains, or mechanical issues that the dealership considers beyond normal wear and tear. Disposition Fee. The disposition fee covers all costs associated with reselling your car, and can be a few hundred dollars. This pays for the dealership to clean and detail the car, and make any necessary repairs before reselling.Cost of maintenance. If you want to keep your car, it is important to do additional research to determine what your cost of maintenance will be in the next several years. If there are several expensive maintenance costs that will pop up, you will need to compare this cost with the savings from the other fees.How to Buyout Your LeaseYou’ve run the numbers and you think that buying out your lease makes the most sense and is your best option. What next?Call your existing leasing company. Get a comprehensive list of all costs associated with the buyout. Make sure this number includes sales tax, which can be a significant amount.Shop around for rates. Go online and look around at different rates. Not all lenders offer buyout loans, so you will have less options than when you originally financed your loan. It is also important to note that lease buyout loans are used car loans, which tend to have higher interest rates than new car loans. At Auto Approve, we work with lenders that do offer lease buyout loans, and can help you get the best rate available.Your rates will be based on prevailing interest rates in the industry as well as on your personal finances, just as your initial loan. Make sure you have all necessary documents for your loan application: Photo IDYour Vehicle’s InformationProof of Income and Financial HistoryProof of ResidenceProof of InsuranceHaving all necessary documents ready to go will help to streamline this process. Be sure to apply to all lenders within a fourteen day period. The credit bureaus allow all credit inquiries in a fourteen day period to count as one credit hit, so it will not adversely affect your credit score more than necessary.When the lenders respond with their offers, compare the rates and terms. At AutoApprove, we can help you shop around to compare rates and terms to find the best option for your buyout loan. Call Your Insurance CompanyYou will need to notify your insurance company of your new lender. This is also a good chance for you to review your insurance needs. On a leased vehicle, you are typically required to have high levels of liability coverage. You may decide that you do not need such a high level of coverage based on where you live or how much you drive, and you can opt for lower payments by reducing this coverage. Make Sure All of Your Paperwork Is In OrderTalk to your lender and be sure to visit your state’s motor vehicle department to transfer the title and make sure all of your paperwork is in order. Your lender should be able to guide you specifically through what steps you need to take. And when you work with Auto Approve, we handle the DMV paperwork for you!Ready to buy out your lease? Auto Approve can helpIf you have considered all of your end of lease options and determined a lease buyout is the right option for you, we're here to help you with the next steps so you can keep your car, hassle-free.At Auto Approve, we never mark up rates on car buyout loans or vehicle refinancing, so you know you're always getting your best possible rate. We pass all of the savings right on to you. We know car financing can be complicated and stressful, but we're here to streamline the process and save you as much money as possible.Check out our auto lease purchase options and get started today!GET A QUOTE IN 60 SECONDS

So, you have a car, you love it, but the interest rate... isn't so hot. You're probably wondering whether refinancing could help and, if so, when you can refinance.First, let's talk about vehicle refinancing.When you refinance a car, you are paying off your existing loan with a new loan that ideally has better terms. Just as you are able to obtain a vehicle loan whenever you would like, you are also able to refinance a vehicle loan whenever you would like. But there are many factors to consider when trying to determine the best time to refinance a car and whether or not it makes sense for you right now.Let's take a look.When can you refinance a car, and when is the best time to refinance?There are many factors to consider when it comes to refinancing. Here are some things to think about when determining if refinancing is a good idea for you right now.Your Existing LoanFirst and foremost, it's important to look at the terms of your existing auto loan.Sometimes, lenders will have prepayment penalties attached to the loan, so it is important to know what the penalties will be if you choose to refinance. If there are prepayment penalties, be sure to do the math to determine if the savings of refinancing will outweigh the downside.When determining the best time to refinance a car, it depends heavily on how long you have had your original loan and how many payments are remaining. Let's take a closer look at that.It’s the beginning of your auto loanWhile you can technically refinance immediately after you get your initial loan, it is generally better to wait a bit before refinancing your car.60-90 Days: This is the amount of time it typically takes for the title on your car to transfer. You need to wait until all the paperwork is finalized to refinance, so it's actually unlikely you'd even be able to refinance in this first period of time.Up to six months: It takes some time for your credit score to bounce back after the hard inquiry from your first loan. If you have fantastic credit, this might not be an issue. But, typically, waiting at least six months will yield more beneficial refinancing options. If you are a first time car loan borrower, it is recommended that you wait a year before refinancing your car. This will prove an on-time payment history and make you a more desirable candidate and qualify you for better loan terms and rates.It’s towards the end of your auto loanTo talk about why this matters, we need to get into the nitty-gritty of loans for a moment.First, how does interest on a loan work? Through amortization, the amount of interest you pay gradually decreases over the life of the loan. This means in the beginning of the loan, you are paying off more interest than towards the end of the loan. Let’s look at how car loans are constructed and how car payment amortization works.Car loans accrue simple interest. This means that if you take out a car loan for $20,000 at 5% interest with a 48 month payment, you will pay back $2,108.12 in interest, with monthly payments of $460.59 for the next four years. However, car loans are amortized and “front-loaded”, meaning that, in the beginning, your payments aren’t split evenly between your interest and your principal. The amortization schedule below shows how your monthly payments are split up for the first six months of your loan.Let's look, for example, at a $20,000 loan at 5% interest over 48 months.Month: 1Principal Amount: $20,000.00Monthly Interest Payment: $83.33Monthly Principal Payment: $377.25Ending Balance: $19,622.75Month: 2Principal Amount: $19,622.75Monthly Interest Payment: $81.76Monthly Principal Payment: $378.82Ending Balance: $19,243.92Month: 3Principal Amount: $19,243.92Monthly Interest Payment: $80.18Monthly Principal Payment: $380.40Ending Balance: $18,863.52Month: 4Principal Amount: $18,863.52Monthly Interest Payment: $78.60Monthly Principal Payment: $381.99Ending Balance: $18,481.53Month: 5Principal Amount: $18,481.53Monthly Interest Payment: $77.01Monthly Principal Payment: $383.58Ending Balance: $18,097.95Month: 6Principal Amount: $18,097.95Monthly Interest Payment: $75.41Monthly Principal Payment: $385.18Ending Balance: $17,712.78As you can see, in the earlier months you are paying more in interest than you are later on. Based on this amortization, you can see the total yearly amount paid in interest.Interest Paid:Year 1 - $894.80Year 2 - $657.79Year 3 - $408.68Year 4 - $146.83The majority of your interest is paid in the first two to three years that you have your loan. That means that the longer you wait to refinance, the less beneficial it will be to do so. This is because one of the major benefits of refinancing is less paid in interest over time, but if your interest is mostly paid off, you won't get to see that benefit.Current Interest RatesWhen deciding whether now is a good time to refinance a car loan, look at the current interest rates being offered. Are they better than your original interest rate? Depending on the size of your loan, even a .5 % difference can make a huge difference in the total amount you will be paying.Your Current Credit ScoreCheck your credit score using one (or all of the) of the three major bureaus: Equifax, Experian, and TransUnion. Is your credit score better than it was when you initially applied for a car loan? If so, now might be a good time to refinance.On word to the wise: Refinancing will result in another hard inquiry on your credit report, which will negatively affect your score for about a year. It may also lower the average age of your accounts, which can negatively affect your credit score. So, if you need a high credit score for another reason, like applying for a new mortgage or taking out a new lease on an apartment, consider this in your decision to refinance your car. However, there's no hard inquiry involved in getting a quote, so if you're not sure whether the savings will be enough to make a difference, you can always get a quick and easy quote to help make your decision.Your Current Financial SituationIf you need a little more breathing room every month in your budget, now might be a good time to refinance. By reducing your interest rate or lengthening the payment period, you can reduce your monthly payments. And, for those who need a break from their car loan, refinancing can also give you a few months off from payments.On the flip side, if you would like to pay off your loan earlier, refinancing to a lower rate and shortening your payment period will save you money in the long run. Depending on your current loan, you may even be able to pay less monthly and less in interest over time!When It Doesn’t Make Sense to RefinanceThere are times when refinancing will not be beneficial to you. If any of the following apply to you, it might not be the best time to refinance your car:Your credit score has decreased. You will most likely not find a lender to give you a better rate, unless your current loan is at a really bad rate.Your vehicle has a lot of miles on it. Most lenders have a minimum loan amount and if the car has depreciated in value significantly, it may not be worth your while.Your loan is “upside-down”. If you owe more on your vehicle than it’s worth, you may struggle find a lender that will be willing to refinance at a good rate.All that said, if you're on the fence, it can't hurt to try — getting a quote doesn't require a credit check and can give you an idea of whether or not you should refinance in just a few clicks.And that's everything you need to know about when you can refinanceWhile there are few limitations on when you can refinance, you can use this tips to time your refinance correctly to get the best possible deal. In order to find the best time to refinance your car, take a look at your current loan’s terms and payment period as well as your personal finances.Depending where you are in your repayment schedule, refinancing could save you a bundle. At Auto Approve, we help you find the best refinancing options for your situation. If you’re interested in refinancing, use our quote tool and we can help you find you your best possible savings to put more money back in your pocket.GET A QUOTE IN 60 SECONDS

If you're like most people these days, you may wondering how you can stretch your paycheck a little more this month. With the cost of everything rising left and right, whether you're trying to make ends meet, looking to save for a big purchase, or simply looking for more disposable income, many of us are looking for ways to save a few dollars.Here's the good news. Refinancing your truck may be a quick and easy way to reduce your monthly payments and give your wallet some much needed breathing room. So what does it mean to refinance a loan exactly? To put it simply, refinancing is paying off your existing loan with a new loan that ideally has better terms. Most people are overpaying every month for their truck loan, and refinancing is a straightforward way to fix that.So when exactly is the best time to refinance your truck? Consider the following factors to determine the best time for refinancing.Your personal finances, including your credit score, income, and future cash flowYour current loan’s terms, including prepayment penalties and time remainingCurrent interest ratesLet’s take a closer look.Here are the major factors to consider when deciding when to refinance a truck.Your personal financesTrying to determine when is a good time to refinance a car loan or truck loan is going to vary from individual to individual. Your personal finances will be a huge factor as to when you should consider refinancing. It is important to think about your credit score, your income, and your cash flow when making this decision.Your credit scoreYou might be wondering, “what credit score do I need to refinance my car or truck?” The truth is there is no one magic number that will make refinancing make sense. It is important instead to look at how your credit score has changed since you last financed your truck. To put it plainly, has your credit score increased or decreased? If it has increased, even only slightly, you may qualify for a lower interest rate. This leads to more savings every month and more money in your pocket. If your credit score has gone down, this might not be the best time to consider a vehicle refinance.A good credit score is one of the most important factors in securing a good interest rate, so keep a close eye on your score to determine the best time to refinance.Your incomeHas your income decreased since your original financing? So many people have experienced decreased earnings in the past few years and are in need of extra cash to meet their monthly obligations. If your income has decreased recently, refinancing is a great way to reduce your monthly payments and help bridge the gap between earnings and expenses.Your cash flowWhat are your plans for the future, and do you have the cash flow to help you get there? Maybe your family is expanding and you could use the extra cash, or you finally want to pull the trigger on that bathroom remodel you’ve been talking about for years. Refinancing your truck might be the answer to your cash flow question. You may be eligible to refinance and borrow additional money based on your truck’s value. You can also use this money to cover other expenses, such as paying off credit card bills or catching up on medical bills. It is important to be careful here, however; a truck is a constantly depreciating asset, so you do not want to risk owing more money on your truck than it is worth. Your current loan’s termsIn addition to your personal finances, it is important to look at the current terms of your auto loan to determine whether or not it is the right time to refinance your vehicle. The amount of time you have left in your repayment period will affect whether or not refinancing is worthwhile. In addition, some lenders charge fees should you choose to pay back your loan early. It is important to check these terms and weigh your options.Time remainingHow much time is left on your current loan’s pay period? If refinancing to a lower interest rate results in a similar or shorter payment period with a lower rate, you will certainly reduce your payments and save money overall. But what if refinancing your truck lengthens your payment period? This may lead to lower monthly payments, but the additional payment period means you may be paying more money overall. This decrease in monthly payments may still make sense though, depending on your financial situation. It is important to look at all of your options and do the math to decide whether or not it is a good time to refinance your truck. The experts at Auto Approve can help you compare different options from different lenders to optimize your vehicle refinance.Prepayment penaltiesDoes your current lender have prepayment penalties? Some lenders charge a penalty for paying off early, making it more of a burden to refinance. Prepayment penalties help these companies to offset the lost profits that come as a result of paying off loans early. To find out if your loan has a prepayment penalty, you can look through your contract or contact the lender directly to find out. If you find out there is a penalty associated with paying off your loan early, be sure to sit down and do the math. If the penalties of refinancing your truck are outweighed by the savings, it still might make sense to refinance.While there can be exit and transfer fees associated with refinancing, rest assured that, at Auto Approve, we never markup the price that you pay.Today’s interest ratesInterest rates in 2021 have only increased slightly since 2020’s historically low interest rates. It is hard to predict what 2022 will bring economically, but many experts think that over the next two years the interest rates will likely rise. This means that it will make more sense to refinance your truck sooner rather than later. It is important to take advantage of the historically low interest rates while it is possible to do so. It is important to consider all of these factors when deciding the best time to refinance your truck.Should you refinance your car or truck? Is refinancing a vehicle worth it? As you can see there are many factors that must be taken into account. Ultimately, you want to get the shortest loan term combined with the lowest interest rate to guarantee you are getting the best truck loan possible. At Auto Approve, we advocate to get you the best rates and best deals from leading lenders. Because, at the end of the day, we all just want to keep a little more of our hard earned cash in our pockets.If you're ready to refinance your truck, we can help.GET A QUOTE IN 60 SECONDS

The refinancing process can lower your monthly payments and help you get out of debt faster. The answer to the question "should I refinance my car now?" depends on your situation, but if you're thinking about it, here are some things to consider:Is your auto loan term nearing its end?Are you struggling with high monthly payments?Have interest rates gone down?Has your credit score gone up?Do you want a lower interest rate?If the answer to any of these questions is yes, now may be the time to refinance your car. Let’s take a look at all of the factors that you’ll want to consider when deciding when to refinance your car loan.Your Credit ScoreYour credit history is one of the biggest factors in being able to refinance with most lenders. If you have good enough credit, then refinancing your car could save you money.Refinancing can be a great option if you have improved your credit and want lower monthly payments or to get a longer term on your loan. Better credit can also qualify you for a lower rate than you initially received so that you can pay less overall, regardless of whether or not you want a lower monthly payment.The only thing worth noting when it comes to your credit score is that you’ll want to avoid refinancing multiple times, as doing so could hurt your score, and rates usually go up with each refinance. Your Cash FlowIf your income has gone down or you want more money in your pocket for added expenses, refinancing your auto loan could make sense for you. Doing so can lower your monthly payments and help save some cash.Refinancing offers tons of potential savings and can be helpful for people who have limited cash flow. For example, if you’re unemployed and need money in your pocket right away, refinancing can lower your monthly payments and even give you the option to take a few months off from making a payment.Before refinancing your car loan, make sure you refinance for the best possible price. Shop around and compare offers before signing any paperwork to make sure you’re saving as much as possible. Unlike the competition, at Auto Approve, we never mark up the rate the bank offers you, so we pass maximum savings on to you. Your Existing LoanWhen thinking about whether or not to refinance your car loan, it is important to know the current interest rate and term of your loan. You should consider the amount of time left on your loan and any prepayment penalties.Prepayment penaltiesPrepayment penalties are fees your lender charges you for paying off the loan before it is due. Watch out! Some lenders will not refinance loans that have prepayment penalties attached. That said, even if your current loan has a penalty attached, it may still be worth it for you to refinance. In some cases, you may be able to save more by refinancing than the cost of the penalty. This is especially true if you got a particularly bad rate on your existing loan (which frequently happens when you buy a new car directly from the dealer). Time remainingIf you have several years left on your current auto loan at an unfavorable rate or your existing loan has high fees, refinancing may be the right decision. After all, refinancing your car loan can be a great way to save money on interest and get lower monthly payments.If you refinance your loan to a longer term, you’ll likely be able to lower your monthly payments – but you could end up paying more in interest. On the flip side, if you can refinance at a lower interest rate and at a similar or even shorter loan term, you’ll be able to save money in the long run. (That’s one of the things that makes refinancing so great!)Eligibility For A New LoanHere’s a good question: What makes you eligible to refinance your car? Well, it varies based on the lender, but eligibility can depend on: how old your car ishow many miles you have on ithow much money is left on your loanand other factors If you’re not sure whether you’re eligible to refinance, don’t worry – we can help! Talk to one of our knowledgeable and friendly Auto Approve agents or use our handy online quote form to find out if your vehicle loan qualifies and how much you might be able to save in a jiffy.Interest RatesWith all that out of the way, one of the most important factors you should consider when deciding when you should refinance your car is the broader picture of interest rates.When it comes to interest rates, there’s no time like the present to refinance your car loan. There are a lot of reasons why refinance rates may be lower now. Interest rates have been historically low for years but hit an exceptional low during the COVID-19 pandemic. As of today, they’ve only increased slightly since 2020. However, it’s possible that interest rates may go up in 2022. If that happens, then refinancing may become less helpful for those looking to put a little money back in their pocket with a lower payment, better rate, or both. With that in mind, if you’re eligible, it’s a great time to refinance your automobile right now.And that’s everything you need to know about choosing when to refinance your car loan.Many things go into the decision to refinance your loan, but these tips should help you know what to look for. After reading these tips, it should be clear whether refinancing may be the right decision for you right now – and if now's the time, give Auto Approve a try.GET A QUOTE IN 60 SECONDS

Thinking about refinancing your SUV? You're in the right place.Refinancing is the process of taking out a new loan to pay off the balance of your existing loan, and there are a number of good reasons you might want to refinance a vehicle. Perhaps your financial situation has changed and you need a little more money every month, a little more breathing room in your wallet. Vehicle refinancing can help lower your monthly payments, either by lowering your interest rate, extending your payment timeline, or both. Maybe you have a bit of extra money and you want to pay off your SUV at a faster rate and be done with the loan entirely. Refinancing can lower your interest rate and decrease your payment timeline, allowing you to pay off your loan faster and, ultimately, saving you money.Here are some factors to consider when deciding if now is the best time to refinance a car or SUV.How to know if the time is right for your to refinance an SUVThere are many things to consider when it comes to refinancing a car. If any of the following apply to you, it might be a good time to refinance your vehicle.You didn’t get the best deal on your SUV in the first place due to your income or credit scoreMaybe your credit score had just taken a hit from some inquiries or missed payments. Maybe you had a tough couple months at work and your income wasn’t as high as the bank would have liked. Regardless, the bank didn’t view you as a very desirable candidate, and you were stuck with a rather high interest rate.Since then, your credit has improved. You have checked your credit reports on the three credit bureaus (which you can do for free once a year), and everything looks better. Your job is steadier, and your paychecks are a bit bigger. You know that if you went for that loan now, you would get a much better rate. While there is no magic credit score to refinance, you know that you are a much more desirable candidate this time around.If you originally bought your SUV when times were a bit tougher and your situation has since improved, this could be a great time to consider refinancing.You didn’t get the best deal in the first place due to a smooth talking salesmanYou went in to browse and get an idea of what kind of SUV you might be interested in, and before you knew it you were signing on the dotted line. Somehow you agreed to a 7% interest rate when other lenders were offering 5%, and you didn’t even see it coming. Car dealerships notoriously offer higher rates to make more money, and it is common to get caught up in the excitement and agree on the spot.In this case, simply refinancing with an accredited lender can reduce your interest rate, even if your credit score and income have remained the same.Interest rates in general have dropped since you first took out the loan on your vehicleDid you take out your SUV loan years ago when interest rates were high? Big banks tend to adjust interest rates based on how the economy is performing.If the economy is dragging, as we are seeing now, banks will often lower interest rates to encourage more spending. It is important to take advantage of these rates before the economy speeds up and the banks increase rates again. Timing is key when it comes to interest rates and refinancing your vehicle.If you're ready to start the refinancing process today, it's quick and easy to get a quote from Auto Approve. We never mark up rates from our lenders so, with Auto Approve, you know you're getting your best possible rate.Get a quoteYou want to add or remove a borrower to your policyAdding or removing a co-borrower to your loan is a very common reason to refinance, whether the reason is personal or financial.Adding a BorrowerMaybe times are tough right now. Your hours at work got cut and you are struggling to make ends meet. The monthly payments are simply too much to keep up on. Your friend or partner, however, could use a set of wheels, and they have some extra money to help bridge the gap in your payments. Best of all? They have fantastic credit. That's a great reason to consider refinancing your SUV! You can also refinance with a partner who has better credit simply to reduce household bills or help a partner who has worse credit than you by co-signing on their refinanced loan.Whatever your reason, adding your friend or partner to the loan can secure you a better interest rate and reduce your overall payments, since you will be splitting the monthly cost. The lender will consider your joint income and both of your credit scores when determining an interest rate.Removing a BorrowerWhat about removing a co-borrower? Maybe you had a co-borrower on the original loan because your credit wasn’t the best, but you don't really need the help anymore. Or maybe you were in a relationship that has now gone south and you need to separate from that person financially. Either way, refinancing your vehicle is a great way to sever that financial tie.You need the extra breathing room each monthYour finances have changed a bit for whatever reason, and you are having trouble making your monthly payments on everything. You want to take a big trip or are saving up for a big purchase. You simply want more spending money to pamper your family. No matter why you want a little extra wiggle room, refinancing could be the solution.Refinancing can allow you to lengthen your repayment period, which will lower your car loan payments every month. Keep in mind that this often means you will be paying back more money overall for the duration of the loan, unless you are able to drastically reduce your interest rate as well.It’s been at least six months since you originally took out your SUV loanYou need to wait at least 60 to 90 days to be able to apply for refinancing, as it typically takes this long for the title transfer to complete. But waiting six months will allow your credit score to bounce back from any dips that your credit score may have taken when initially securing your loan. First time borrower? Experts suggest waiting a year to refinance to optimize your refinancing options.You have at least two years remaining on your current SUV loanSince most of the interest for a loan is paid in the beginning, the more that is paid off on the loan, the less beneficial refinancing can be. Having at least two years remaining on your loan will help ensure that you will benefit from refinancing your vehicle.How you know the time is not rightWhile it might sound tempting to refinance with the current low interest rates, there are several reasons that it might not be the best time to refinance your SUV. If any of the following apply to you, consider waiting on refinancing your vehicle.Your credit score has decreasedYour credit score is the single most important factor in determining your interest rate. If your score has not increased since your original loan, you will likely not qualify for refinancing. Credit scores can decrease for a number of reasons, such as:Late or missed payments.High credit balances.One of your credit limits decreased.A lot of new credit inquiries.Your credit utilization score has dropped. This ratio is determined by adding up all of your credit card balances and dividing it by your available credit. This number should ideally be 30%Any of these factors can cause your credit score to drop. Request a copy of your credit report and, if you see any inconsistencies, you can report it to the credit bureaus. You need a high credit score for another reasonWhen you apply for refinancing, your credit score will take a hit. There is a fourteen day window allowed by the big three credit bureaus that allows for all credit inquiries in that span to count as one credit hit. But if you need your credit to be in good standing for another reason, say a mortgage application, it is best to hold off. These credit inquiries will affect your credit score for a year, so plan accordingly.The fees outweigh the savingsSome lenders build in prepayment penalties to their contracts. To offset the cost of losing your remaining interest, they build in penalty payments. Read your contract closely to see if you will incur any penalties, and call your lender directly if you are still unsure. Sit down and do the math to determine how much you will save by refinancing a vehicle, and see if that outweighs any penalty fees you might incur.You have an old vehicle or a vehicle with high mileageIf your SUV has very high mileage or is an older model, it will be difficult to refinance. It might make more sense to consider trading in or buying a new SUV if this is the case. You owe more on your SUV than it is worthWhen you owe more on your SUV than it is worth, it is referred to as being “upside down” or “underwater”. If this is the case, lenders may not see the value in refinancing your SUV loan.And now you can decide the best time to refinance an SUVIf the time seems right, Auto Approve is standing by to help you apply, compare offers, and determine the best refinancing option for you. Auto Approve never marks up the rate you pay, so you know you're getting the best rate available.With an A+ rating from the Better Business Bureau and a 96% would-recommend rating from Lending Tree, you can be confident that we will work hard to save you money.GET A QUOTE IN 60 SECONDS