2012 has already been a year of note. In addition to all the talk about Nostradamus’s predictions and the Mayan calendar, this is a leap year, making it one of the few in which February has 29 days. That means 2012 will have an extra day for us to get our lives in order. While the year is still young, maybe you, like me, are considering ways to get your budget back on track. Given the unique additional time at our disposal, why not leap into spring with auto refinancing?
Much like when you refinance a home mortgage, auto refinancing pays off your existing vehicle loan. But it’s much faster and simpler to refinance the loan on your automobile. During the process, your new lender pays off your old loan and the title to your vehicle is transferred to your new lender.
Car refinancing can lower your interest rate, decrease your monthly payments by changing your terms, or both. Most often, people refinance when interest rates are low in order to reduce the amount of interest they’re responsible for paying. You can also lower your monthly payments by extending the duration of your auto loan, which breaks up payments over a longer time frame.
You could potentially enjoy significant savings through auto refinancing. Exactly how much you’ll save depends on the remaining balance of your current loan, the difference between your old and new interest rates, and the terms of your new loan.
Whatever your motivations may be, car refinancing can help you fulfill your personal financial goals. So take a leap of faith to find out if this could be the right option for you.