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Getting your license and buying your first car is one of the most exciting moments in a teenager’s life. After all, a car means freedom, independence, and adulthood. And for parents, it marks the end of playing chauffeur for your kids. But buying a car can be overwhelming for kids and parents alike. From choosing the right car to managing how you will pay for it, there’s a lot that needs to be taken into consideration. Here’s your ultimate guide to buying your first car.What should I think about when choosing a car? SafetyStatistically speaking teenagers are three times more likely to crash than drivers that are over the age of 20. And with over 2500 teen fatalities and 200,000 teen injuries that result from car accidents, safety should be a top priority when selecting the right car. While many teenagers will want a fun, small, fast car as their first set of wheels, this is not the most pragmatic choice for a new driver. You want a car that can protect the driver and passengers in case there is an accident. Newer cars tend to have the best safety features and tech that can help reduce the risk of an accident. Newer cars come with higher price tags, so try to find a balance of safety and affordability. Safety rankings from the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) can help you determine which cars might be the best for a young driver.  BudgetThe budget you select is important for a few reasons. Not only do you need to make sure that you can afford the car you are buying, but you also need to make sure you can afford the additional financial factors. Insurance, gas, and maintenance are other things you will need to consider. If the car you are considering has terrible gas mileage, you will have to keep that in mind for your monthly budget. If you are purchasing an older car that does not have a warranty, you should budget for repairs and emergencies. Consider all of the factors that go into car ownership when determining what your car buying budget is.New or UsedIt can be hard to decide whether buying a new car is better than buying a used car. As we said before, new cars have much better safety features and will be more dependable than a used car. But they come with high price tags that might not make sense for young drivers (especially given the higher likelihood of getting into an accident). For most people it will make more sense to get a used car that is still in good shape and only a few years old. It will likely still be under warranty and will have many of the safety features that you want, but it will come with a much lower price tag. A used car will also come with a lower cost of insurance, which can help your budget a great deal.How much should a high schooler pay for a car?Of all of the factors that will affect your decision, your budget is likely the factor that has the least amount of wiggle room. So how can you determine the right amount of money you should spend on a car? A lot of this will depend on who is footing the bill for the car. If you are a high schooler that has saved their money and is looking to buy a car without any help, you will need to carefully examine your budget. Are you looking to buy a used car with cash you have saved and no financing? You will need to make sure not only that you have enough money saved to buy the car, but that you can afford the registration and tax that will be required. You will also need to make sure you can afford the gas, insurance, and maintenance that you will have to pay for every month.If a family member or loved one is helping you out, be sure to have an honest conversation about the budget. If you are buying a new car and they are cosigning, make sure you are both on the same page as to who is making the down payment and how much you can afford in monthly payments.There is no hard and fast rule on how much a high schooler should spend on their first car, but you will most likely want to find something in the middle. Finding a used car in the $10,000 to $20,000 range should give you some safe options while still being affordable for many families.How to buy your first car.Set your budget.Setting your budget is the first step in car ownership. If you plan on financing you will need to find a consignor so that you can get a good rate for your car loan. Talk to a loved one to find out if they are willing to cosign. If you are planning on making the payments, be absolutely sure you can make the payments, otherwise your loved one will be on the hook. List your wants and needs.Determine what is most important to you when it comes to getting your first car. Safety should absolutely be on the list, but additionally you should think about the following:The type of vehicle. Do you want a car, truck, or SUV? The make and model: Do you have preference on the make or are you flexible? It’s good to have a few different options in mind as you start looking around.The gas mileage. Do you drive a lot and require good gas mileage, or is that not as much of a concern?The add on features. Is an entertainment system important? Sunroof? All weather mats? The resale value. It’s always good to take the resale value of a car into consideration. Certain brands retain their value so that when it’s time to sell it you still have some cash in your pocket.The color and appearance. Is there a certain look you want your car to have?  Decide on new or used.There are pros and cons to each, so you will need to decide what makes sense to you. Look at dealerships and private sellers.Start to look around at your different options. If you need to finance, a dealership will make the most sense for you. But if you are buying used you can look more broadly. Look on sites like Kelley Blue Book and Edmunds to find out what a fair price is for the cars you are interested in and don’t just take the dealer’s word for it. The more prepared you are the better you will fare when it comes to negotiating.  Look at the car’s history.When you find a car that you love, be sure to do a background check on it. CARFAX and AutoCheck can alert you if the car has ever been involved in an accident. You should also check to see if there are any recalls on the car and whether or not they have been fixed. Having the car checked over by a mechanic is also a great idea if you aren’t especially car savvy yourself. Take a test drive.It’s incredibly important to take the car for a test drive. You want to make sure that you are comfortable and aware of any issues that the car may have. As a new driver, a lot will feel new and foreign to you, but if you are comfortable with how the car drives and how you are positioned it will make you a safer driver. Negotiate. Whether or not you are buying a new car or a used car you should definitely try to negotiate. Private sellers and dealerships alike are usually open to negotiating, so prepare ahead of time. Bringing a parent or loved one is best when you are a first time car buyer. Dealers may try to take advantage of a new driver’s naivete, but an older authority figure can help ensure you don’t get swept up in a bad deal. At the very least try to get them to waive any dealer fees.  Make sure your paperwork is in order.When you buy a new car you will need to make sure that it is registered and insured before you drive it. Be sure to have proof of registration and proof of insurance on you when you head out for your first drive.That’s everything you need to know about buying your first car.A little research and preparation can help ensure that you get a car that you love that doesn’t blow your budget out of the water. And if your car payments are too high, contact Auto Approve! Car loan refinancing can help you save a lot of money every month, and who couldn't use some extra cash in their pockets? So what are you waiting for?GET A QUOTE IN 60 SECONDS

Summer is nearing its end with many parts of the country already heading back to the classroom. But while the weather is warm and the days are long there are still ways we can enjoy the summer and make every minute of sunshine count.Here’s our last minute guide to enjoying the rest of summer.Go swimming.If you have a pool, chances are you have been enjoying it all summer. But if you don’t have a pool there are still plenty of ways to get some splashing in! Lakes and swimming holes can be found in many states, and if you aren’t lucky enough to live within driving distance, your community pool (or a neighboring community pool) can give you some reprieve from the heat. Go out for ice cream.What says summer more than an ice cream cone? Hitting your local ice cream shop for a cone is one of the best ways to keep summer going. If you have a bit more time on your hands, check out a new spot you haven’t been to before. This Thrillist article ranks the best 40 in the country, but if you don’t happen to live near one of those there are most likely dozens of options within driving distance. More of a do-it-yourselfer? Try making some ice cream at home! It’s really easy and doesn’t require many tools, contrary to what many people think. Try a device-free day.This is great for kids and adults alike. After all, who couldn’t use a break from emails and social media? Block out a day where there’s no TV, no computers, and no phones, and try to enjoy a tech-free day. Have a dance party in the living room, cook a meal with your family, go for a walk, break out the crafts–whatever you want! Just be sure to hide the remotes and screens. This will only work if adults participate whole-heartedly and keep the family engaged (this means no sneaking off to check messages while the kids are playing!)Go on a field trip.Field trips in school are always a blast, but taking your family on their own field trip can be even better. Decide on a fun and educational destination, such as an aquarium, planetarium, or even a farm that allows visitors. You can learn a thing or two while enjoying some quality family time. Going out for a fun lunch or dinner (or just ice cream) can put the cherry on top of a great family day. Want to get really into it? Have your kids design matching t-shirts that you can wear and have them draw maps and itineraries for everyone in the family. Planning for your field trip can provide a full day of activities in and of itself! Have a family game day.Game days at home can provide the perfect relaxed summer activity. Have everyone pick their favorite game and be sure to play them all. Make some lemonade, sit out in the backyard (or just set your living room up picnic-style) and enjoy a laid back day free of running around and screen time.Go to a waterpark.If you haven’t had the chance to go to a waterpark yet, now is the perfect time. You may need to turn it into an overnight trip if it’s not within an easy driving range, but it’s a perfect getaway for kids of all ages (and adults!) If a waterpark isn’t in your budget, set up your own waterpark at home and recreate the fun in your backyard. A sprinkler, splash pad, and slip and slide are more than enough to bring smiles to your family’s faces. Make some fun drinks, set up an obstacle course, have some friends over to join in on the fun. The options are endless and you don’t have to break the bank to have some fun. Take a trip to the movies.In the age of streaming, going to the movies is a foreign concept for many. But catching an afternoon matinee is a fun way to spend the day and get out of the house. Matinees are also cheaper than evening shows, so it's the perfect time to see that movie you’ve been talking about all summer. Try a craft together.Crafts are fun for kids and adults alike. There are endless options and they can be as simple or as complicated as you would like! Let your kids pick their favorite ideas from Pinterest and see what you can create together. It’s a great way to introduce your kids–and yourself–to a new skill while spending time together. The summer is the best time to craft with kids because you can do it outside and avoid a messy cleanup afterwards. Activities like painting and coloring can be far more enjoyable if you aren’t worried about ruining your carpet and your furniture.Go camping in your backyard.Setting up a tent and sleeping under the stars with your family is another fun way to enjoy the beautiful weather. Act as if you are far from home–that means be sure to pack everything you will need and bring it outside so that you can avoid running inside as much as possible. Start a fire, toast some marshmallows, and tell some scary stories. Wake up to the sound of birds chirping and bask in the beauty of a summer morning. No backyard to stake out in? No problem! Set up a tent in your living room and recreate the experience indoors. Get some glow in the dark star stickers, open up the windows, and tell stories by flashlight (avoid the open flames while indoors, please). It will be a night to remember for your whole family.Take a road trip.It’s not too late to take a road trip and make some memories. Whether it’s a one-day excursion or you want to stretch it a few days, a road trip is a wonderful way to connect with your family while seeing some sights. Pick some good music or agree on a podcast or audiobook, open the windows (or crank the AC if it’s a bit too warm) and enjoy the scenery as you drive to your destination. The destination is up to you, whether it’s just a park you’ve wanted to visit or an event you’ve been scoping out. But enjoy the trip and not just the destination. That’s how you can enjoy the final days of summer.The summer is always gone before we know it, but we can still squeeze a little more fun out in our remaining few weeks. And if you’re trying to squeeze a little more out of your budget each month, get in touch with Auto Approve today! Refinancing your car loan can save you a lot of money, and who couldn’t use that? GET A QUOTE IN 60 SECONDS

For most of the United States this summer has been brutally hot. Dealing with the heat can be uncomfortable and even dangerous for many, including our cars. The heat can bring a lot of unwelcome issues, so it’s important to try to head off any problems before there is a larger issue. Here are our top five tips for driving in the summer heat.Tip #1: Check your fluids. There are a number of fluids that are vitally important to keeping your car running smoothly. While replacing and topping off these fluids is always important, it’s even more important to do so in the heat when your car is under even more stress than usual. These fluids will also evaporate in the heat, making them disappear even faster. Be sure to keep an eye on the following fluids and top them off as needed:Motor oilCoolant (antifreeze)Power steering fluidBrake fluidTransmission fluidWindshield washer fluid If you tend to be forgetful with this type of stuff, set a reminder in your phone to check every few weeks or stop by your trusted mechanic to have them monitor everything. It may be a good idea to keep coolant in your trunk if your car’s engine has overheated in the past. Tip #2: Maintain the cooling system.Your engine’s cooling system keeps your engine running smoothly. Coolant is circulated through the engine block where it absorbs heat and then moves the heat out of the engine, cooling everything down. While keeping the coolant topped off is an important part of maintaining the cooling system, there are other steps that you should take to ensure the cooling system is running optimally. Be sure you are using the right type of coolant. Coolant is specific to your make and model, and using the wrong one can cause serious problems for your engine. You should also be sure to never mix different types of coolant as this can cause complications as well.Inspect the hoses and connections regularly to check for leaks. If the coolant is leaking out and unable to circulate properly, your engine can overheat. Change old coolant as recommended in your owner’s manual. As coolant ages it can turn acidic and corrosive, which means it can eat away the aluminum in your radiator.Read your owner’s manual to see when you should have your system serviced professionally.Tip #3: Maintain your car’s air conditioning system. Your car’s air conditioning system not only keeps you comfortable, but it keeps you and your passengers safe and healthy. High temps in the cabin can cause a dangerous health episode for anyone inside, especially the elderly. Heat stroke and dehydration can happen even when you aren’t doing physical activity. But your air conditioning can help avoid danger even in the sweltering heat. Here's how you can keep your car’s air conditioning in top shape:Change your cabin’s air filter regularly. The air filter keeps dust and debris out of your cabin, and which can help keep your air conditioning running more smoothly. Additionally clean air can increase your fuel efficiency and keep your cabin smelling fresh.Have it serviced when you notice an issue. Air conditioning units are complex, so it's recommended that you get it serviced professionally. In general you can expect to recharge your air conditioner every two years or so.Listen for any noises coming from the air conditioner. Noises can signify an issue with your car’s air compressor. Recognizing the warning signs could help you fix the compressor or replace it before you are left with no AC in the extreme heat.Take care of your air conditioner throughout the year. Running it for at least ten minutes every week, even in the winter, can help ensure that it will start up when you need it.Tip #4: Check your tire pressure.  Temperature has a huge impact on your tire pressure. Air is affected greatly by temperature, and as air heats up it expands and changes your tire pressure. A change of 10º Fahrenheit can cause your tires to gain or lose one PSI (pound per square inch). While your tires can withstand changes throughout the day, a drastic increase of 20º or 30º could mean that your tires are overinflated by the end of the day.It’s recommended to keep a tire pressure gauge in your car (you can pick a cheap one up and leave it in your glove compartment) and check it when there’s a big temperature swing. You can check the recommended PSI for your car in the user manual or in your car’s door jam. When tires are underinflated, more of the tire’s surface comes into contact with the road. Underinflated tires can cause the following problems:Causes your car to feel sluggish.Lowers gas mileage (about 0.2% for every PSI drop).Decreases the lifespan of tires.When tires are overinflated, less of the tire’s surface comes into contact with the road. Overinflated tires can cause the following problems:Makes them more vulnerable to damage.Distorts the tire and causes them to bulge and wear more in the center.Can lead to a tire blowout, which is a major safety concern.You should monitor your tires year round, paying attention not only to the inflation, but also to how the treads are wearing. Replacing your tires or getting your alignment fixed can help you stay safe on the road in any temperature. Tip #5: Be prepared.Unfortunately, bad things happen even if we try to avoid them. But being prepared for an emergency can save your sanity. In the summer be sure to have the following essentials in your car in case you break down or find yourself stranded somewhere:Bottled WaterNon-perishable snacksJumper cablesFirst aid kitRoad flaresFlashlight (and batteries)Cell phone charger If an emergency arises, you want to be sure you have what you need either to fix the problem yourself or get safely somewhere to have the problem solved. Having a charged cell phone and a list of emergency contacts is also important, especially if you are driving with children in the car.What should I do if my car overheats? In the severe heat, engine overheating is a very real concern. There are a few telltale signs that your engine is overheating: You notice a strange, almost sweet smell (the smell of antifreeze)The engine temperature gauge starts spikingThe check engine light or temperature light comes on Steam and/or smoke starts coming from underneath the hoodIf you notice any of these signs, it is important to follow the steps below to stay safe and avoid further damaging your car.Turn off the air conditioning and turn on the heat. Turning off the air conditioning will reduce the strain that the engine is experiencing. And while it may sound weird, turning the heat on will help divert heat away from the engine and help it cool down. Pull over and wait.You need to give your car a break as quickly as possible. Pull over at the first safe spot you see and turn your engine off for at least 15 minutes. This will give the engine a break and allow it to cool down naturally. Do not ignore the signs that your engine is overheating. Even though your car still may be running, continuing to drive can cause major damage to your engine.  Add coolant if possible, but only after waiting.If you have coolant on hand, topping it off may help cool the engine down and prepare further damage. But do not pull over and add the coolant immediately. The engine is extremely hot and opening the hood can result in a severe burn. Instead, wait 15 minutes and cautiously open the hood when things have cooled down.  Assess the situation.If you are able to start the engine and feel that it is no longer actively overheating, you can drive your car slowly and cautiously to a mechanic. Keep an eye on the gauges and engine temperature and pull over again if the heat starts creeping up. If the car is not starting easily or it seems to be smoking more, call a tow truck and have a mechanic look at it immediately. Your mechanic can help assess the damage and determine what next steps you should take. That’s everything you need to know about driving in the extreme heat. The summer can–and should–be full of fun. But car trouble can turn a fun day at the beach into a nightmare in a matter of seconds. Being prepared and keeping your car well maintained can help reduce the chance of a problem. If your car troubles involve your car payments, Auto Approve can help! Refinancing your car loan can help you save money every month, and who couldn’t use that? Our experts can get you a free quote in a matter of minutes and help you decide if refinancing is right for you. So don’t wait!GET A QUOTE IN 60 SECONDS

When buying a car there are a number of additional expenses that we will be required to pay on top of the vehicle price, and one of those expenses is sales tax. Whether it is new or used, sales tax is required by most states and should be factored into your car buying decision. Here’s how sales tax works when buying a used car.What is sales tax?Sales tax is a percentage-based tax that is imposed on goods and services. In the United States sales tax is charged and collected by the states. What goods and services are taxed depends on the state where the purchase is made. There are some exceptions to sales tax that broadly include:GroceriesPrescription medicines and certain medical devicesSales of items paid for with food stampsSales to the US government In general most retail items that you purchase, including buying a new or used car, requires that you pay sales tax.How much is used car sales tax?Sales tax varies widely from state to state. If you are lucky enough to live in one of the five states where there is no sales tax–Alaska, Delaware, Montana, New Hampshire, or Oregon–then you will not be required to pay sales tax when buying a used car. For the remaining 45 states the sales tax ranges from 2.9% (in Colorado) to 7.25% (in California).  Some jurisdictions have local sales tax requirements as well. For example, while Alaska has no state sales tax, certain areas have a local sales tax. It is important to note that sales tax is paid in the state where the car is registered, not necessarily the state where the car is purchased. There are eight states that allow nonresidents to register cars: Delaware, Indiana, Kentucky, Maine, Massachusetts, New York, North Dakota, and Pennsylvania. But this can create issues down the line when you insure your car, as you need to register and insure in the same state. It’s much simpler to register where you live and avoid the hassle.How can I calculate used car sales tax? Sales tax on a used car is based on the price of the car. A dealership will calculate this for you, but if you are buying from a private seller you may need to do the math yourself. To calculate the sales tax you can take the following steps.Convert your state’s sales tax to a decimal by dividing it by 100. For example, if your state’s sales tax is 6%, 6 divided by 100 is .06.Multiply the sale price by the decimal. If you are trading in a car at the dealership, you may be allowed to deduct the amount of the trade-in from the sale price in certain states. This means that you would only have to pay sales tax on the difference between the price of the new car you are getting and the car you are trading in. This is not the case if you sell your old car privately or do a trade-in at a different dealership. Do I have to pay interest on sales tax?Sales tax is a separate fee from the sales price. When lenders decide how much credit they will extend to you they evaluate the LTV (loan to value ratio). The value is based on the sales price of the car excluding taxes and fees. LTVs typically hover around 90%, meaning that if the sales price of the car was $30,000 they would loan you around $27,000. You would need to pay at least $3,000 out of pocket as a down payment, plus any taxes and fees. It is possible to get a higher LTV if you have great credit, and you could then roll your interest and fees into your car loan. If you roll over your sales tax into your loan then you will be responsible for paying interest on it. It is more common however to make a down payment that comprises 10% of the car’s value, the sales tax, and the fees. This will also help your loan from becoming underwater, meaning you owe more on your car than the car is worth.  Who pays sales tax when buying a used car from a private party?Buying from a private party can be beneficial for many reasons:You can usually find a better price.You don’t have to worry about upsells. It’s usually less of a time commitment.You may have more bargaining power.But buying a used car from a private party does not mean that you can avoid paying sales tax. It is still the responsibility of the buyer to pay sales tax in the state where the car is registered.Can I avoid paying sales tax on a used car?Unfortunately you cannot avoid paying sales tax unless you live in a state where there is no sales tax. Registering your car in a nearby state where there is no sales tax may seem like a way to avoid this, but your insurance and license need to match your registration. So in short, it’s not a good idea to attempt registering in another state. Sales tax is merely an unavoidable cost that you will need to account for when buying a car.How can I get the best car loan? Whether you are financing a new or used car, there are a few steps you can take to ensure that you get the best car loan deal possible. Research the car you want.Be sure to look around at a few different dealerships and compare prices. Looking at Kelley Blue Book or Edmunds can also give you an idea of a fair sale price. Prepare your finances.You will get the best car loan possible by ensuring that your finances are in order. Request a copy of your credit report to review for any errors before applying. Research lenders. You should apply with a few different lenders (we recommend 3-5) to give yourself the best chance to compare and get a good loan. You should get preapproved before ever setting foot in a dealership, as this will give you a leg up on negotiating and help ensure you don’t get talked into an unfair loan. Negotiate at the dealership.A good sale price will help you get the best car loan rate and deal possible. Try to negotiate on the sale price as well as on the extra fees that are tacked on. That’s everything you need to know about paying taxes on used cars.Sales tax is unavoidable when it comes to purchasing a car, so be sure you factor it into your car buying decision and include it in your budget.If you are overpaying on your car loan, contact Auto Approve today to see how much money you could save!GET A QUOTE IN 60 SECONDS

If you are planning on buying a new car, there’s a good chance that you will need to finance at least part of the purchase. Financing allows you to borrow some (or all) of the money for a large purchase and pay it back to the lender over a set period of time. Lenders will charge you interest, which is essentially the fee for borrowing money. So how do interest rates work on car loans? Let’s talk about how interest rates work on car loans.How do car loans work?Car loans are very simple in principle. If you want a car that you cannot afford, a bank will loan you the money to purchase the car. You will get to take the car home and drive it as if it’s your own, but it is technically an asset of the bank. When you pay back the money that you owe your lender, plus the interest that accrues over the life of the loan, the bank will sign the title over to you and you will officially own the car.What is an interest rate?Interest is the cost of borrowing money from a lender. There are three different types of interest rates which are all calculated in different ways. Simple interest (also known as regular interest) is based on the outstanding principal. Example: You borrow $1,000 with a 5% annual interest rate, you would pay $50 per year in interest.Accrued interest accumulates and is unpaid until the end of the payment period.Example: Every month you are required to pay $60 in interest. Every day you accrue an additional $2 in interest and when you hit the $60 interest total the payment is due.  Compound interest is paid on the total of the principal and the already accrued interest. Example: You borrow $10,000 with 5% interest and have $200 in accrued interest. Your annual interest would be $510: ($10,000 + $200) *.05How do car loan interest rates work?Car loan interest rates are almost always simple interest rates. A borrower is offered one fixed rate for the duration of their car loan. As the borrower pays down the principal, the amount of interest that they pay decreases until they have paid the loan back entirely. In some cases lenders may use precomputed interest. This means that at the start of your loan they determine how much you will pay in interest and your payments will be divided evenly. If you pay off your loan early, you will still be required to pay the predetermined interest, so you will be unable to save money as you would with a simple interest rate.Is APR the same as interest rate?When it comes to car financing, the terms “APR” and “interest rate” are often used interchangeably. But this is not correct and they are not actually the same. The interest rate is the cost of borrowing the money, while the APR (or Annual Rate Percentage) is the interest rate plus any additional loan fees for which you are responsible. These fees, also referred to as “prepaid finance charges” can vary widely from lender to lender. They typically cover costs associated with underwriting their loans and doing the necessary paperwork. What factors affect the interest rate you will be offered?The car loan interest rate that is offered will be based on a number of different factors, including the market rates and the credit worthiness of the applicant. Here are some of the factors that affect the interest rate offered:Your credit scoreYour credit score is the biggest factor that is within your control when it comes to what interest rate you will be offered. Your credit score is an indicator of how likely you are to make on-time, full payments every month. The better your score is, the better candidate you are for a car loan. The best interest rates will be offered to applicants with strong credit scores.Your debt-to-income ratioYour debt-to-income ratio is another huge indicator of how likely you are to repay your loan. If you have a lot of debt compared to how much money you make, you are considered less likely to repay your loan. The market conditionsThe credit score you are offered will also be based in part on the prevailing rates at the time. If interest rates are high in general you can expect to be offered a higher rate than at other times.The vehicle you are buyingThe vehicle you are buying will also impact the interest rate you are offered. The most important factor is the age of the car. The older the car is, the higher the interest rate will be.Your down paymentThe size of your down payment will also have a large impact on your interest rate. The larger your down payment is, the less likely your loan is to become underwater (meaning you owe more money to your lender than the car is worth).The loan termA longer loan term will generally mean a higher interest rate. It will also mean that you will pay more interest over the life of the loan because you will be paying interest for a longer time. Your monthly payments will be lower because they will be stretched out over a longer period of time, but you will (quite literally) pay for this in the long run.How can I get the best car loan interest rate?Securing a low car loan interest rate will mean big savings in the long run, so it’s important to do your research and prepare as much as possible when buying a car. To get the best car loan interest rate possible, prepare by doing the following:Work on improving your credit score.Request a copy of your credit report and review for any errors. Pay down debts where you can, focusing especially on loans with high credit utilization ratios.Save additional money so that you can make a more sizable down payment.Get preapproved before heading to the dealership.Apply with several lenders (3-5) so that you can compare the offers.Avoid selecting a long repayment period if you can. Be sure that the car you are purchasing will fit into your budget.That’s everything you need to know about car loan interest rates.If you are planning to buy a new car it is important to understand how car loan interest rates work and how you can get the best rate possible. If you already have a car loan and are unhappy with your current interest rate, contact Auto Approve today to find out how much car loan refinancing can save you!GET A QUOTE IN 60 SECONDS

Cars today rely heavily on computers, and while the idea of hacking a car may seem like a plotline out of a heist movie, it’s quickly becoming a reality. Modern cars are susceptible to cyber attacks in the same way that our phones and computers are, and that’s because modern cars are essentially computers on wheels. But how can cars be hacked and what can we do to protect ourselves?Here’s how your car can be hacked and how you can protect yourself.What parts of our cars are controlled by computers?Cars today are controlled largely by ECUS–electronic control units–that all have different functions. Each ECU has a specific job, whether it’s to monitor the temperature of the engine or unlock the doors. Here are just some of the computer systems that keep our cars functioning according to GlobalSpec: Airbag Control Modules: Passive safety device that inflates the airbags when there is a collision. Body Control Modules: Regulates body electricity including wipers, horns, and lights. It may also help the car’s entertainment system.Engine Control Modules: Regulates the performance of a car engine. Includes igniting the spark plug, injecting fuel, and cooling the engine.Electronic Brake Control Modules: Adjusts braking on ABS braking systems and helps prevent the wheels from slipping or locking.HVAC Control Modules: Allows for automatic cabin circulation for auto AC units.Infotainment Control Modules: Controls the dashboard computer system including navigation.Power Steering Modules: Receives information on vehicle speed, steering position and torque and produces steering feedback to the driver.Powertrain Control Modules: Regulates the powertrain system ensuring the power flows from the engine to the wheels. Suspension Control Modules: Controls the suspension and adjusts the tension for the wheels to create the smoothest ride under current road conditions.Transmission Control Modules: Adjusts the displacement and transmission based on the engine’s RPM. Each ECU varies greatly from unit to unit. They use different communication components, have different numbers of inputs and outputs, and have different amounts of microprocessor memory depending on their function. More complex modules will need more complex communication systems, more inputs and outputs, and a higher amount of memory. How can your car be hacked?ECUs are essentially the brain of your car. They connect to each other via the CAN bus, where information is sent and received. And because this information can be sent and received, it can also be intercepted.  Car hacking isn’t the most common type of cyber attack but these types of hacks are increasing in frequency. According to Upstream, a cybersecurity and data management platform for cars, the amount of hacks on car systems increased 225% between 2018 and 2021. Upstream analyzed 900 incidents of car cyber security breach and noted: In 2021 nearly 85% of attacks were done remotely. Keyless entry and key fob attacks were the number one breach in security accounting for 50% of all vehicle thefts.Data and privacy breaches accounted for 38% of incidents studied while car theft and break-ins accounted for 27% and control system hacks accounted for 20%. As cars become more and more connected, these types of attacks are expected to increase in the future. Upstream anticipates losing $505 billion to cyberattacks by the end of 2024. So how exactly are hackers getting into your car? Hackers use attack vectors to get access to your car’s computer system. Attack vectors are weak points in a system that can be used to access your car’s network. Attack vectors used to be limited to key fobs and physical access to the controller area network. But nowadays there are a lot more attack vectors, mainly because there is a lot more that is controlled by the computer. Here are a few ways they can get into your system:Physically hacking into the system through the headlights, ABS, OBD port, or other susceptible areas.Counterfeit parts and components of your car that are embedded with malware.Through MP3 malware–a music download may be embedded with malware codes that can get into your car’s system.Through data downloads–an update or app download to your car could be embedded with codes. Intercepting a key fob signal.Through an EV charging station. If a hacker does manage to get access to your car’s computing system, what does this mean for you?  Here are some of the threats that hacking poses.They can remotely follow you through your tire pressure monitoring system. They can find vulnerabilities in sensitive information access in some vehicles.They can disable your brakes while you are driving.They can change your destination on your navigation system.They can cause your vehicle to accelerate.They can hack into your phone if it is connected to your car and access your personal information.They can get access to your car’s key fob and open your car without your knowledge.They can send malicious messages or data to your phone or computer. They can control your windshield wipers and air conditioning. While there are seemingly endless possibilities when it comes to what hackers can do, there are certain threats that are more severe and more realistic. Hacking into your car to get your personal information or to steal your car are the most probable threats, as there is significant motivation to carry out these attacks. There will always be hackers who are motivated merely by malicious intent or simply to prove that they can do it, but the majority of hacking is done to get personal information or personal property.What can you do to protect yourself from a cyber attack?So what can you do to protect your car from a cyber attack? There are a few steps that you can take to help keep your car–and your information–safe.Choose a secure pin and password for any apps that interact with your car.Simply cracking a password may allow hackers to get access to your car’s computing system. Taking the time to select a secure password will help minimize this threat.Use a signal blocking bag to carry your key fob.A Faraday bag will block your car's key fob signal and prevent hackers from getting access remotely. Use certified parts on your car.Counterfeit parts pose a huge risk not only for hacking but for your safety in general. Making sure you are getting certified parts will help ensure your safety. Use a trusted mechanic. Mechanics have access to your car’s computing system, so selecting a mechanic you can trust is important. Don’t leave anything connected to the OBD-II port.These ports allow you to plug in a device and pull information from your car’s computing system, so they are a major attack vector when it comes to hacking. Leaving a device connected, such as an insurance carrier’s tracking device, can open you up and leave you more vulnerable.Don’t leave your password in your vehicle. If someone breaks into your car and finds your password written down they can steal your car and even disable tracking for stolen vehicles.Don’t download directly to your car’s browser unless it’s from a trusted source.Downloading music or data can open your car’s entertainment system up to a host of cybersecurity threats. Pay attention to recalls.Car manufacturers are monitoring cyberattacks and looking for weak parts in the car’s computing system. Jeep Grand Cherokee had a recall in 2015 when it was determined that hackers could break into the wifi connected multimedia system and gain control of the car. Car owners were sent a USB update that contained rewritten code to fix where the security breach occurred. Staying on top of these recalls can help you stay safe.Cover your VIN.A recent experiment from Sam Curry found that it’s possible to hack a car simply by knowing its VIN. Covering your VIN (located on the bottom of your windshield) with a piece tape or paper will hide it from a lurking hacker in a parking lot.Use Android Auto or Apple CarPlayThese systems have more advanced security settings than any other infotainment systems out there. Avoid programming your home address and work address into your GPS.Hackers can learn a lot about you by accessing your GPS, from where you live to where you work to where your kids go to school. It may be easier to save these places in your navigation system, but you will be much safer if you can avoid doing so. That’s what you need to know about car hacking and how you can protect yourself. With new technology comes new risks. While so much of these advancements have made our lives easier and more seamless, they have also opened us up to a whole new world of threats. We may assume that it will never happen to us, but in today’s world the threat is always there. Using our tips above can help protect you from car hacking and keep you and your family safe. If your car loan has you feeling vulnerable, contact Auto Approve today! We can help get you a new loan with better terms and lower payments. So what are you waiting for?GET A QUOTE IN 60 SECONDS

We spend a lot of time in our cars these days. This means we often need things in our cars to make our time there easier and safer. Our glove boxes are the perfect place for all of these essential items. While everyone has different specific needs for their car depending on where they live, how often they drive, and whether or not they have kids (IYKYK), there are certain things that everyone should keep in their glove boxes.Here are the top 12 things you should keep in your glove box (in no particular order).#1. Your registration and insurance.You shouldn’t drive anywhere without a copy of your registration and insurance. Getting caught without these pieces of paper can cost you a lot of money depending on where you live. You can even have your car impounded and in some cases get arrested. So obviously it’s important to make sure that you have both your registration and insurance safely tucked away in your glove box. Check to be sure it is current and whenever new cards arrive be sure to replace them so they are always up to date. #2. Your vehicle owner’s manual.Your owner’s manual is full of useful information, so it’s a good idea to keep it handy. It can be especially valuable if you see a dashboard light that is unfamiliar. But can’t we just look everything up on our phones? Yes, but your manual will be a faster option than trying to find your exact make and model specs online. #3. A cell phone charger.Being out without a phone today is a horrible thought. We depend on it to keep in constant contact with friends and family, sure, but we also depend on it for directions and to keep us entertained while driving. Without streaming music or podcasts, what are we to do? Many parking meters and lots these days require (or at least strongly encourage) paying by cell phone, adding another layer of necessity when it comes to our phones. Keeping an extra charger will help ensure that we are never without our phones, especially when we are out and about in our cars.  #4. An emergency escape tool.An emergency escape tool is something we all need but all hope we never have to use. These handy tools will help you to break a window and cut your seat belt in the event that you are in an accident and need to get out of your car. These tools have a spring-loaded pointer made of metal that, when released, will shatter a car window completely. They can be used if your car gets submerged in water, rolls over during a crash, or gets stuck in a weather emergency. Again, you never want to use it but you will be eternally grateful if you have it when you do need it.  #5. Emergency flares.Emergency flares are another necessity for survival. Flares can help you get attention if your car breaks down or you are involved in an accident. At the very least they help make you visible so that passing cars do not hit you by accident. #6. First aid kit.A first aid kit is another survival essential. Whether you get a paper cut while flipping through papers in your front seat or you are involved in an accident, a first aid kit will certainly prove itself useful on more than one occasion. Your ideal first aid kit will have the following:A first aid manual with basic first aid tasks such as how to perform CPR.GlovesGauze and assorted bandagesAntibacterial sprayDisinfecting wipesPain relieversAnti-bacterial creamsEye washLip balmTweezersAny additional medications you use #7. A bottle of water and snacks.It’s a good idea to always have a fresh bottle of water and snacks of some sort in the case of an emergency. If this won’t fit in your glove box, consider keeping a small box or bag in your trunk. IF you ever get stranded somewhere these items will be crucial. #8. An ice scraper.While this may not apply to you depending on where you live, for many who live in the US an ice scraper is an absolute necessity. You never know when the weather might turn in the winter and you don’t want to get stuck at work or out running errands without an ice scraper. A sudden storm could mean iced over windows with little to visibility, which could easily result in being stranded.  #9. Pepper spray or a pocket knife.It’s a good idea to have some sort of protection on you. Whether you are in an unfamiliar part of town or are driving through the country, both of these items can help keep you safe. Whether it’s the threat of another person or even an animal, they will both give you a bit more peace of mind.  #10. Matches or a lighter.It’s always a good idea to have either matches or a lighter on hand. They take up very little room and can be incredibly useful. If you ever need to start a fire in the cold or light a flare you will be very grateful to have the assistance.#11. Flashlight.If you drive at night, which most of us do, a flashlight is absolutely essential. You never want to be stranded in the dark without a light, and relying on your phone’s flashlight will drain your battery. It’s much better to have a heavy duty waterproof flashlight with extra batteries stored in your glove box. #12. Emergency contacts and information.If you are ever involved in an accident it’s important to have information easily accessible for rescue workers. A laminated paper with emergency numbers and any relevant medical information will help the emergency workers get in touch with your loved ones and get you the help that you need more quickly. List the following information on the front of the card: Your name and addressPhone (Home, Work)Birth dateBlood TypeSocial Security No.Health Insurance Carrier and Individual and Group #Physicians On the back of the card you want to list the following:Emergency contactsAny medical conditions or disabilitiesMedicationsAssistance neededAllergiesImmunization DatesAny other information that might be relative Medical information can be a matter of life and death, so it’s incredibly important to be prepared and make an emergency card for your glove box.Those are 12 things you should keep in your glove box at all times.  You can’t anticipate every emergency or issue that will pop up while driving, but you can strive to be as prepared as possible. Preparing your finances for emergencies is just as important as preparing your car. If you are overpaying on your car loan every month, Auto Approve can help! Contact us today to see how much you could save.GET A QUOTE IN 60 SECONDS

There are a number of ways that people can get over their heads with monthly payments. After all, car loan payments are at an all time high with new car payments averaging $725 per month. With the added cost of insurance, gas, and maintenance, owning a car is incredibly expensive. But if your monthly payments are getting too high, what can you do? Is it possible to transfer your car loan to another person and walk away? Here’s what you need to know about transferring your car loan and how you can decide what to do if you can’t afford your monthly car payment.Can you transfer a car loan?First things first: is it even possible to transfer a car loan to another person? The short answer is not usually, but there may be certain situations where a lender will allow it. The terms of a car loan are based on a number of factors, and perhaps the biggest factor is the financial situation of the applicant. Better terms, conditions, and car loan APRs are offered to people who have a good history of making on time payments. The better your credit score and credit history is, the better your loan terms will be. Transferring a loan to someone else means that they will assume the exact loan and loan terms that you have, even if they have a drastically different financial history than you. If their financial situation is worse than yours, then the lender is taking on a greater risk without any compensation. If their financial situation is better than yours, then they are getting unfavorable terms.  When you sell a car that is still being financed, a lender will instead look at the new borrower’s information and make a loan offer based on that. They will issue a new loan that is separate from your agreement entirely. But all that being said, there are some situations where a lender may agree to transferring a car loan. It will depend on the language of your loan contract and there may be fees associated with it. A transfer may be allowed in certain situations, such as:You are moving overseas and do not have the time to sell your car properly.You are in a very tight financial spot and need to get out of your loan agreement immediately. You are giving the car as a gift. Your car loan will have language in it that pertains to transferring your loan. If your car loan is “assumable”, then it can probably be transferred to another person. But if you are unsure of the language in your contract, be sure to contact your lender and explain your situation.  How to transfer a car loan.Discuss the transfer with your lender.If you are allowed to transfer your car loan (and even if you aren’t allowed) your first step is to call up your lender and discuss your situation. If there is language that excludes it you may still be able to talk them into it. The worst they can do is say no. If your loan is assumable there will be conditions of the transfer.  Have the new borrower apply. The new borrower will have to meet their minimum credit score and any other criteria that the lender may have in place. The lender will review their application and determine if they will allow the transfer.  Transfer the loan and the title.When all of the paperwork is done the lender can formally transfer the loan and you will need to transfer the car’s title. You should visit your state’s Department of Motor Vehicle to determine what you will need to do this. Typically you will need to have the bill of sale, registration, and money for the transfer fee. Be sure to transfer the title as soon as you can to avoid any problems. Contact your insurance company as well to remove the car from your policy and have the new owner insure the car themselves.What fees are associated with a car loan transfer? If you are allowed to transfer your car loan you may be responsible for some additional fees. The new borrower will most likely be responsible for them, but they may include:Application feeTransaction feesClosing feesFees for missed or late paymentsRegistration fee (for the new borrow to register with the state)What should I do if I can’t transfer my car loan?If your car payments are burying you but you are unable to transfer your car loan to another person, there are other steps you can take to get yourself into a more comfortable financial situation.Contact your lender and ask for a deferment.If your financial woes are temporary, a deferment may be a great way for you to get your head above water. Deferring your payments for a few months will pause your loan and allow you to catch up. It’s important to keep in mind that you will still accrue interest during this time, but it’s an easy and temporary way to help you out of a tight spot. Refinance your car loan.Perhaps the most straightforward way to deal with high monthly car payments is to refinance your car loan. Refinancing is when you take out a new loan with better terms and conditions that will replace your current car loan. Refinancing may help you get a lower car loan APR and can help you change your repayment period. If you lengthen your repayment period you will have more time to pay off your loan and will greatly reduce your monthly payment. This can be a great option for many people who are struggling and need a little more wiggle room. Refinancing your car loan is easy, especially if you use a company that specializes in car loan refinancing. They will have relationships with lenders that will help you to get the best car loan possible and can help guide you through the refinance process.Add a cosigner.If you want someone else to be responsible for the car and the loan alongside you, consider adding a cosigner. You will both be equally responsible for the loan. This might be a good option if you want to take the car back in a little while and assume sole responsibility. You will still need to refinance the loan to add a cosigner, but adding a cosigner may actually help you get a better car loan APR and better terms and conditions. When you apply for a refinance with a cosigner the lender will consider both of your finances and credit histories. So if your loved one has a better credit score than you it may help you secure a better rate. Trade your car in.If your car payments are decidedly too much money every month, another good option might be to trade your car in. If you trade your car in and get a cheaper car you will lower your car payments and still have a dependable mode of transportation. Try leasing instead.Financing a car is significantly more expensive than leasing a car. While financing a car is great because it builds equity, leasing will allow you to have a dependable car for much less money every month. Trading your car in and leasing instead can help you pay for any fees and help reduce your payments further. Sell your car.If things are especially difficult, refinancing your car loan may not be enough to put your finances in order. If you lost your job or have had another significant life change, it might be best to sell your car and figure out a different mode of transportation. Perhaps you can try depending on public transportation for a little while until your situation gets sorted out more. Can I transfer my car loan to a credit car?If you are offered a 0% introductory APR for a credit card, you may wonder if you can transfer your loan balance to your credit card. It may offer you a lower APR and cash back, both of which. So if you are struggling with payments this may seem like a great idea. While it can be a good option for some people, there is a significant disadvantage: missing a payment could be catastrophic. A missed or late payment could result in a skyrocketing APR that will put you in a much worse position than you were in previously. Refinancing your car loan is a safer option that does not come with the risk of a missed credit card payment.That’s everything you need to know about transferring your car loan to another person.Transferring an auto loan may be allowed in certain situations, but it is not widely offered or practiced. But selling your car to another person or refinancing your loan with a cosigner may help you reach your end goal and reduce your monthly payments. If car loan refinance sounds good to you, get in touch with Auto Approve today!GET A QUOTE IN 60 SECONDS

Many people are trying to find ways to save money, and when you can save money while doing something good for the environment, it is a win-win situation. Carpooling can help you and your neighbors save money while cutting down on emissions, so it’s a great idea for many people. But how can you start incorporating carpooling into your life? Here’s everything you need to know about organizing a carpool.What is carpooling?Carpooling is when a group of people decide to ride together and share in the costs and responsibilities of driving. Maybe one person is the designated driver and the others give them money in return, or maybe everyone alternates driving. But the end result is the same: one car for many people which results in less cars on the road, less gas consumed, and less money spent on transportation.Carpooling is nothing new. It first became popular during World War II as a rationing tactic. Workers were encouraged to ride together to conserve rubber during wartime. Carpooling came back during the 1970s when the 1973 oil crisis and 1979 oil crisis led to more efforts for conservation. Participation dropped off significantly during the 1980s,1990s, and early 2000s when conservation was far from many people’s minds. Gas glugging SUVs and minivans became more popular, gas prices fell, and the idea of sharing rides was forgotten. But in the past decade or so carpooling has become more and more popular. The effects of emissions are well known and many of us feel pressure to reduce our footprint. Smartphones have also connected us and made it much easier to find carpools and coordinate the logistics.Who carpools? While carpooling can benefit anyone, studies show that there are certain groups of people who carpool more than others. Those who live in high density residential areas and work in areas with lots of jobs nearby are more likely to carpool. Younger people who are unmarried and like being in social situations are much more likely to carpool than those who are older, married, and own homes.What are the benefits of carpooling? There are a number of benefits to carpooling that make it a desirable situation for many.#1. It saves you money.One of the major benefits of carpooling is that it can save you money. There are tons of costs associated with car ownership and maintenance, and carpooling allows you to split those costs. When you carpool you can splitGas TollsParking fees Additionally you can ask for or contribute extra money for wear and tear that can be applied to maintenance, car payments, and insurance. #2. It gives you a chance to socialize.If you enjoy socializing with others, carpooling gives you a chance to meet new people and get acquainted with your neighbors all while commuting to work. #3. It gives you time to catch up on work.If you are not the designated driver, carpooling offers idle time where you can catch up on work, plan your week, read, or do whatever else you may want to do.  #4. It can give your car a break.If you are used to taking your car out a lot and piling on the miles, carpooling gives your car a chance to rest. You can cut down on wear and tear, mileage, and maintenance costs, making your car last for years to come. #5. It’s good for the environment.Carpooling has been proven to significantly reduce emissions, which has an enormous positive impact on the environment. The International Panel on Climate Change estimates that transportation accounts for 23% of global energy consumption. This means that it is up to everyone to change their behaviors if we hope to reduce emissions. For those in urban areas, switching to public transportation can be a great solution. But for those in suburban or rural areas, this may not be practical. Carpooling offers a way for people in the suburbs or rural communities to reduce their emissions as well. It’s been found that carpooling can reduce the carbon footprint of an average household by up to 2,000 pounds of CO2e annually.  #6. It may get you there faster.If you live in a heavily trafficked area you have undoubtedly seen the carpool lanes. Carpool lanes are intended to incentivize people to rideshare, as they have much less traffic and can get you to your destination faster.What are the disadvantages of carpooling?Carpooling has many benefits for our wallets, our social lives, and the environment. But it may not be an easy switch for many as there are some significant disadvantages. #1. There’s less flexibility.When you are driving with a group of people you will not have the flexibility to come or go as you may please. You will have to stick to a schedule and you will be unable to stop for errands as you may normally. Additionally, if someone in the group is running late, you will all be running late as a result. #2. It may be uncomfortable.If you are a shy person carpooling may prove to create an awkward situation. You will need to socialize to some extent, and this may be too intimidating for some introverted people. #3. The driver is responsible for everything.When you carpool the driver is responsible for the safety and timeliness of everyone in the group. This means that they are liable for everything as well, including any accidents that may occur.  #4. It may not feel secure.Riding in a car with total strangers may feel uncomfortable, and that feeling may even border on feeling unsafe. After all, who are these people? While there is a relatively low risk of crime, statistically speaking, it’s a good idea to try to organize a carpool through your work so that you are riding with people who are already vetted to some extent. How can I start carpooling? If you feel like carpooling may be a good option for you, starting a carpool is pretty easy. Step 1. Find a carpool.Granted, this is probably the hardest party of the whole process. Your company may already have an established carpooling program that can help you connect with people who may be interested. If your company doesn’t have a carpool program, consider reaching out to HR to determine if you can get one stated. Step 2. Determine who will be the organizer. Whether it’s you or someone else, someone will need to take charge and organize a schedule, routes, and how the carpool will work. Here are some questions to consider:Will everyone alternate driving? Will some drive while others pay extra? Are there special scheduling considerations? (i.e. some days the carpool won't be needed)What is the best route for everyone? Will the route be consistent or will it change so that everyone has a chance to have the shortest commute?How will emergencies be handled, and who will serve as backup drivers in those situations?How much money will everyone contribute? How often will contributions be made? Step 3. Layout guidelines for each vehicle.Everyone has different rules when it comes to their cars. Make sure there is a written understanding regarding all of these rules. Some people may not want food or drinks in their cars, while others may allow it. Some drivers may not allow music as they may view it as a distraction. Whatever the rules are, be sure everyone is aware of them. You may find it easier to agree to blanket rules, such as no music or food. This will keep everything simple and straightforward. If people are not respectful of the guidelines, agree on what the best course of action will be. You should also discuss driving guidelines. Make rigid rules so that everyone stays safe. Make it clear that speeding, illegal maneuvers, and reckless driving will not be tolerated. Step 4. Get an app to organize.It may be useful to get a carpooling app such as Caroster. This can help you communicate clearly and effectively. These apps are great even if you are just looking to organize a one-off carpool for an event. Step 5. Check in regularly.Make a point to discuss how everything is going at least once a month. Is the schedule working for everyone? Does everyone feel like their contributions are equal and fair? Are there rules that are not being followed? Open and honest communication will help keep your carpool going strong for months and years to come.That’s everything you need to know about carpooling. Carpooling can be a great way to socialize, cut your emissions, and save money all in one swoop. Refinancing your car loan is another great way you could be saving money. By refinancing to a lower interest rate you could be saving hundreds, if not thousands, every year. And who couldn’t benefit from that?  If you are overpaying on your car loan every month, contact Auto Approve today! You can get a free quote in minutes, so what do you have to lose?GET A QUOTE IN 60 SECONDS

If you are having trouble making your monthly car payments, you are probably looking for a way out–and you are not alone. According to Experian, the average new car payment is $725 in 2023. It’s all too easy to get behind on payments when expenses creep that high. Depending on your situation there are two options that may help you out of your current situation: refinancing your car loan and trading your car in. So which is the right option for you? Let’s talk about refinancing your car loan vs. trading your car in and What is car loan refinancing?Car loan refinancing is when you take out a new car loan that will replace your existing car loan. This loan will hopefully have new terms such as a lower interest rate that will help to reduce your monthly payments and make your car loan more manageable. When you refinance, you are taking out a new loan and your new lender will pay off your old loan so that you only have one loan. Car loan refinancing is beneficial for a few reasons:You can secure a better car loan interest rate if your credit score has improved and/or market rates have decreased.You can extend your repayment period so that you are paying less every month over a longer period of time.You can shorten your repayment period so that you save money on interest over the life of the loan.You can add or remove a cosigner.You can get out of a bad relationship with your current lender. Car loan refinancing is easy. When you refinance your car loan you should take the following steps:Contact your current lender to determine what your current payoff amount is. It will be the remaining balance on the loan plus any taxes and fees you may be responsible for.Use that number to shop around with different lenders to see what loans you have available to you. Traditional banks, online lenders, and credit unions all refinance auto loans so you will have a number of options. Apply for a car refinance loan with a few different lenders and compare the terms, such as the interest rates and loan terms. Select the loan that is right for you. After you sign the documents be sure to confirm that the new lender will pay off your existing loan. After your old loan is paid off the lien holder on your car’s title will be updated.Refinancing a car loan is even easier if you use a company that specializes in car loan refinance. They can guide you through the process, help select lenders that will work for you, and help you with your applications. Companies that specialize in refinance will have relationships with lenders, and these relationships can mean more competitive rates for customers. What is a car trade in?A car trade in is when you trade in your current car for a new car. If you are struggling with your payments, you can trade your car in for a new one that is less expensive and will have more manageable monthly payments. If your current car has positive equity, meaning the vehicle is worth more than the balance on the loan, you can put that money towards your new vehicle. If you have negative equity, meaning that your vehicle is worth less than the balance on the loan, your debt will rollover into your new car loan.Dealerships treat car trade-ins and new car purchases as if they are one transaction, but they are two separate transactions and should be treated as such. Your current car has value that you need to negotiate. When you trade in your car you should take the following steps:Research your car’s value. Dealers will naturally try to low ball you if you come in off the street unprepared, so check out sites like Kelley Blue Book and Edmunds to get an idea of how much your car is worth. Your car’s value will be based on a number of factors such as the make, model, condition, and mileage.Check the terms of your loan. Determine whether or not you have negative equity. Having negative equity may mean that you will have to take out a larger loan to pay off the debt.Negotiate the trade in value. Be sure to bring your research with you to the dealership and fight for an increased value. Sign on the dotted line and hand over the keys. When you agree on all of the terms you can sign all of the necessary paperwork and get the title transferred. Get your new car. After you trade in your car you will purchase your new car as a separate transaction and separate negotiation. Which is better: car loan refinance or car trade in?Both of these options can help to ease your monthly car loan payments, but how do you know which option is right for you? It depends entirely on your situation, your loan, and your relationship with your car.  If you like your current vehicle and simply want a lower interest rate or a modified repayment schedule, car loan refinancing is a great option for you. You can stay in the car you love while getting out of a loan that you do not love. If you aren’t loving your current vehicle and want to get a new set of wheels anyway, a car trade-in is probably a better option for you. You can essentially start over, even though you will be required to pay for any negative equity that may have rolled over from your first loan.Are there other ways to lower my monthly car payments?If refinancing your car loan and trading your car in both feel like big steps that you don’t want to make just yet, there are a few other options that you can try. Ask for a deferral. If you are experiencing financial trouble your lender may allow you to defer your payments for up to three months. You will still have to pay interest during this time but it can give you some breathing room in the meantime.Request a modification. Some lenders will allow you to modify your loan repayment period. Many lenders will not allow this but it’s worth asking. That’s what you need to know about car loan refinancing vs. car trade-ins. The right move for you will depend on your car, your loan, and your financial situation. But if car loan refinancing feels right for you, contact Auto Approve today! You can get a free quote in minutes and it could save you a lot of money.GET A QUOTE IN 60 SECONDS