Introduction: Best Auto Refinance Companies
Buying a car is usually one of the larger purchases that most consumers make throughout their lifetime. Together with mortgaging a house, purchasing a car will usually require you to take out a sizeable loan.
There are literally dozens of car refinance companies out there, though many of them are looking to take advantage of people who don’t have a lot of experience with loans.
Taking the time to find the best place to refinance a car will not only save you money in the long run, but it will also help you enjoy your car without having to worry about exorbitant and unfair interest rates.
Image Source: Refinancing Your Car
In this brief article, we will explain what it means to refinance your car as well as discuss when it makes sense to start searching for the best place to refinance an auto loan.
Once you have determined if it is in your best interest to refinance your car, we offer five best auto refinance lenders you can find online and explain how we determined it one of the best auto loan refinance companies out there.
What Does It Mean to Refinance Your Car?
Unless you are excellent at budgeting and saving money, most people have to take out a loan when they purchase a car.
Most new cars begin around $20,ooo and only increase in price from there. Quality used cars are still more than $10,ooo, making them hard to purchase outright as well.
To avoid having to purchase a junker that may cost you more in repairs, many people are forced into taking out car loans to finance the purchase of their automobile.
Car loans can range from one year to ten years—or even more. During that period, many people may decide that certain situations have arisen that make it necessary to refinance the original loan. There are thousands of auto loan refinance companies that specialize in reworking the terms of the original loan so that the monthly payment and/or interest rates are more favorable to your needs and abilities.
Since many people are forced into refinancing their car loan due to financial difficulties, some auto loan refinance companies are simply out there to try and take advantage of people through offering lower monthly payments but higher interest rates.
The best auto refinance companies, however, are reputable financial agencies that will work with you to help you come up with a payment plan that adapts to your current economic situation while not unfairly penalizing you with extremely high interest rates.
When looking for the best company to refinance auto loan, it is important to consider their interest rates as well as look at the fine-print fees and potential penalties.
When Does It Make Sense to Start Looking for Auto Refinance Companies?
Deciding to refinance your car loan shouldn’t be a decision you take lightly. If possible, you should do all you can to maintain your original loan.
However, there are situations when it makes economic sense to look for quality auto refinance companies to rework your loan. The best company to refinance car loan will usually help you work out more favorable terms than your original loan.
Many first-time car buyers are rightfully excited about the purchase of their first car. This excitement, however, can often lead to bad consumer choices, and many first-time buyers end up with the car of their dreams but the loan of their nightmares.
Young buyers may not take the time to shop the market for the best interest rates on car loans and get locked into a loan with prohibitively high interest rates.
Image Source: Auto Refinance Companies
When the original loan is not favorable for the purchaser, the best auto loan refinance companies may be able to give you a new loan at a lower interest rate. The best auto refinance companies usually help you find out your credit score in order to establish your interest rate for the refinanced loan.
Another reason to refinance your original car loan is if your credit has improved. For people who have a low credit score when they originally purchase their car, as little as 12 months of making timely monthly payments on a car loan should vastly improve a score.
When that happens, it is important to search for the best car refinance companies that will honor your improved credit and give you a more favorable rate.
Furthermore, sometimes interest rates drop in the regional or national economy. This is usually due to an improving economic climate, more competition in lending agencies, or changes in government regulation.
If the interest rate drops significantly during the period of your car loan, you need to find car refinance companies that will honor the changing economic times and give you a better rate.
Lastly, sometimes you simply cannot keep up with the monthly payment plan established during your original loan. Things change in life, jobs come and go, and sometimes you need flexibility with the debt you currently owe.
If that is your situation, searching for the best auto refinance lenders with a good reputation can help you come up with a payment plan that fits your economic situation.
All-in-One Change Management Tools
Top Rated Toolkit for Change Managers.
Get Your Change Management Tool Today...
Best Car Refinance Companies Available
According to carsdirect.com, “Common wisdom says that, if refinancing will lower your interest rate by at least 1 and a half points, it is advisable that you do so. A lower interest rate will mean less money that you pay in the long run, as well as possibly allowing for lower monthly payments.”
If you have determined that it is in your best interest to refinance your original car loan and that it will save you money in the long run, then you need to start looking for the best place to refinance a car.
Though there are thousands of options out there, we offer you information on five auto refinance companies that appear honest and reputable.
My Auto Loan
Myautoloan.com is one of the best car refinance companies for people who are looking for a fast and quick refinancing. Their quick, easy, and stress-free application process makes them one of the best companies to refinance an auto loan when you are strapped for time.
If you have multiple car loans that you would like to refinance, you can include as many as four loans in one application. The application process doesn’t cost you anything, and their fast response rate makes them one of the best auto refinance lenders available.
This car refinance company has been around since 2004, making them one of the original auto refinance companies to begin online lending. These many years of experience make them one of the best auto loan refinance companies.
If you want various quotes on the interest rates available for your refinancing, rategenius.com is by far a great place to start in looking for the best places to refinance your auto loan. This auto refinance company is actually a broker with access to a large lender network. Within their network are large banks, licensed lenders, and smaller banks specializing in car loans.
Once you have chosen and agreed to a rate, Rate Genius will help you complete the loan and fill out all the documents without any additional charge. If you are interested in finding some of the lowest interest rates out there for your refinance, then this may be one of the best places to refinance your auto loan for you to check out.
Up 2 Drive
Up2Drive.com is another quality auto refinance company that consistently ranks among the best car refinance companies nationwide. They are owned by the BMW Bank of North America and have a fairly straightforward application process that can be completed online in a couple of hours.
Compared to other car refinance companies, Up 2 Drive offers an extremely fast turnaround time. What’s more is that Up 2 Drive will send you an expedited check that can either be made out to you or to the original lender. This auto refinance company is consistently ranked one of the best places to refinance a car when you need a quick turnaround for refinancing.
Carfinance.com also ranks among the best auto refinance companies online. They offer refinance loans up to $50,000, making it possible to combine various car loans into one. Like other auto refinance companies, they do have a maximum vehicle age and mileage that must be adhered to in order to qualify for a loan.
For carfinance.com, the maximum vehicle age is eight years, and the maximum mileage is 100,000 miles. The fact that this online company is available in 44 states adds to the reasons why this company is ranked one of the best auto refinance companies around the nation.
Clearlane (formerly Blue Harbor)
In 2016, Blue Harbor was acquired by Ally Financial and relaunched in April 2017 under a new brand, Clearlane.
Clearlane offers a nationwide network, which makes it a great choice for people who have lived in various states and have outstanding car loans from different regions that they would like to consolidate into one, manageable loan.
Clearlane is ranked one of the best auto refinance companies because part of their process includes offering a personal loan consultant to discuss personal financing options over the phone.
If you dislike having to try and manage difficult forms online without professional help, Clearlane provides free, phone-based assistance, which other auto refinance companies don’t offer.
How to Choose the Best Place to Refinance a Car
There is no universally accepted best place to refinance a car. Different car refinance companies offer different deals and specials that may appeal to one person more than the next.
According to bankrate.com, “Unlike refinancing your mortgage or even consolidating credit card balances, refinancing your vehicle loan is usually quick, easy, and painless. No appraisal will be required.
And usually there are minimal, if any, fees.” If you come across a car refinance company that is asking for abnormal amounts of paperwork or requirements, you can be assured that it is probably not the best place to refinance a car.
Furthermore, a best auto loan refinance company should not charge any sort of prepayment penalty. If you can pay off your loan before its due date, then you should be congratulated, not penalized. Furthermore, the vast majority of auto refinance companies don’t charge any startup fees either.
Obviously, all car refinance companies want to make a profit from the interest you will pay on the loan.
Nonetheless, the best auto refinance companies should also consider your economic well-being and encourage you to do all you can to pay off your loan as quickly as you can in order to avoid accrued interest.
Refinancing your original car loan should be an easy, stress-free experience that helps you economically in the long run. By searching for the best place to refinance a car, you can make sure that your decision to refinance will be economically rewarding.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.