Auto Refinancing 101: How Exactly Does It Work?

How exactly does auto refinancing work?

Lower Your Car Payments with Auto Refinancing

Most people don’t realize that they can refinance their vehicle. There are many reasons for why someone might want to refinance, but most revolve around wanting to save money. Still, perhaps in addition to a lower monthly payment and/or interest rate, you want to add or remove someone to your loan. No matter the reason for wanting to refinance, it’s important you understand the outcome on your car loan and finances.

Why should I refinance?

When you purchase a car and sign up for a car loan, you aren’t locked into the interest rate and monthly payment the dealership gives you. If you think your credit score has improved, you should look into refinancing your vehicle. Similarly, if interest rates were high when you purchased your car, refinancing is a good option. Even if your annual interest rate is reduced by a mere 1%, refinancing your car is still worth investigating – the amount of money a lower rate can save you in interest is usually in the thousands of dollars for our customers.

How do I refinance my car?

Auto refinancing saves you from getting stuck with a loan whose terms no longer fit your financial situation, or was simply a bad decision. You don’t have to put up with unrealistic interest rates or hefty monthly payments that wreck your monthly budget.

The process of auto refinance is easy. Simply contact one of iLendingDIRECT’s expert loan consultants and let them get to work on finding you the lowest rate and monthly payment your credit qualifies you for. Once you’re approved with us, your consultant will walk you through your paperwork and keep you apprised of where your loan payoff is every step of the way. We’ll send a check to your new lender, they’ll use it to pay off your old loan, and from there you’ll start paying your new lender monthly. Refinancing often reduces your monthly payment and lowers the cost of your car over the life of your loan.

Now you know that you can refinance your vehicle, but what you might not know is that we can help refinance more than just your primary car. In fact, you can refinance anything with wheels! We also refinance motorcycles, business vehicles, trailers, tractors, RVs, boats, and even semi-trucks.

cash back on car

Refinancing Perks

Because iLendingDIRECT is committed to smart auto refinance solutions, your loan consultant will give you the opportunity to bundle protective products into your loan. Our extended auto warranty and GAP insurance can be included in your lower monthly payment.

GAP Insurance

Millions of vehicles are totaled each year by collision, theft, and natural disasters. There’s a good chance that if a total loss happens to you, you will still be held responsible for the difference between your insurance settlement and your remaining loan balance. This total loss can cause financial catastrophe for the unprepared owner. But don’t worry, the GAP insurance we offer takes care of that.

GAP, or Guaranteed Asset Protection, is an agreement between you and your lender to waive the difference between your outstanding loan balance and the amount of your insurance settlement (if a total loss occurs). Even if you have GAP protection through your insurance company, you’re still responsible for paying your insurance deductible when you use it. But with our GAP, if something happens to your vehicle you get to walk away free and clear! You’ll be able to focus on putting a down payment on your new car, instead of also having to come up with the difference between what your insurance reimbursed you and what you still owe on your old one.

On average, GAP insurance just costs .45 cents per day – a small price to pay to save yourself from financial catastrophe!

If a big ticket item on your car fails, are you prepared to cover the cost today? Surprise bills due to unexpected repairs can leave a huge dent in your budget, especially since there are still other obligations at home to settle. Unfortunately, all cars become less reliable over time, and the cost of repairs increases by 12% each year you own your vehicle.

The extended car warranties we offer at iLendingDIRECT offer you the peace of mind and knowledge that your vehicle is running in tip-top shape. Plus we’ll roll the price of your warranty into your auto loan, so you don’t have to break the bank to afford your repairs. Often, they cost as little as $1.48 per day.

For minimal effort and expense, you no longer have to worry about unanticipated repair expenses. Both our GAP insurance and extended auto warranties are fully cancelable, so if you sell your car or no longer need the coverage, simply contact your loan consultant about getting your pro-rated refund.

The assurance that parts and labor will be taken care of, that you will be protected financially in case of a total loss, add value to the refinancing process. Let iLendingDIRECT be your first step towards achieving financial stability. Call today 866-683-5505.