Refinancing your car loan can reduce your rates and payments. However, you want to avoid dealer scams that can cost you big money. Take some preventative steps by doing your own research and working directly with the lender. In addition, don’t be afraid of questioning terms to be sure you don’t get scammed.
Do Your Own Auto Loan Research
Start researching car loan rates and terms online. Many financing broker sites give you multiple quotes to compare. They will include interest rates and fees. They will also list the APR, which includes both rates and fees. Using the APR allows you to make a quick comparison without doing a lot of math.
Also check out terms. You can choose to pick a short or extended term. Ideally, you will want a short term car loan to keep your interest payments to a minimum. But, an extended term will lower your payments.
By doing your own research, you take charge of your financial situation. You know what kind of deal you can get, and you don’t have to rely on false promises from a dealer.
Work Directly With the Vehicle Lender
Once you have selected a lender, start the application process. You don’t need to go through a third party, even if you have bad credit. When you submit your application, you will receive a more detailed description of your refinancing package.
You can walk away from the loan process at any time, even three days after the paperwork as been sign. Be sure to ask the lender any questions you have. Professional companies will provide you with quick answers.
Question the Terms of the Vehicle Loan
Before signing any paperwork, be sure to read the details of the contract. You should never sign over title to your car. Nor should you sign any blank documents.
Federal law gives you protection from predatory lenders. You have rights, including the option to void the contract anytime during the application process.
By taking the preventative step of researching lenders, you will save yourself from several headaches. You can also scope out the best refinancing deals and start saving money on your car payments.
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Carrie Reeder is the owner of ABC Loan Guide , an informational website about various types of loans.