In the current economic climate, fortunes can change quickly. Job loss is the worst case scenario, but many have seen their incomes go down as recession has affected a number of sectors in the economy. As a result of these changes, some consumers find themselves struggling to afford their car payments. Thankfully, though, one option available to people facing this problem is auto loan refinancing.
Most people don’t know that refinancing their auto loan is a possibility. However, even if you can easily afford your monthly payment, refinancing might be a good idea. One reason that car loan refinancing hasn’t caught on is that most people are unaware of what goes on in the background at the dealership when they go in for a new car. Lenders compete with each other for dealer business and one way they do that is by offering a dealer mark-up. A dealer-mark up is an arrangement wherein the dealership is entitled to part of the interest from the loan. This incentive can increase your financing rate by 2-4 percentage points.
Another benefit is that refinancing allows you to shop around for the lowest rate possible since you are not forced to limit yourself to the choices the dealer chooses to give you. Actually, no matter what your payment is, why pay more than you have to?
If you ever tell yourself, “I just want to slash my payments,” then contacting a professional might be the next step. Founded in 2015, Ignition Financial is an Austin-based company specializing in getting consumers out of unfair, inflated payments and into loans where they pay the correct rate based on their credit history. As a refinance loan provider, they can help you find a loan with a better interest rate and lower payment, as well as finance your taxes and fees with your loan. The company also has a dedicated title department which is there to help. It’s really quite simple. If you want to pay less, you owe to yourself to consider auto loan refinancing.