Refinance Auto Loan

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AUTO REFINANCE LOAN

What is an auto refinance loan?

An auto refinance is a loan that pays off your existing auto loan, similar to a mortgage refinance, but with a much simpler and faster process.

How does it work?

Your new lender pays off your old loan and the title to your vehicle is transferred to your new lender.

Why should I refinance my existing auto loan?

Typically, consumers refinance to get a lower interest rate in order to reduce their interest costs, or to lower their monthly payments. Auto loan rates are at very low historical levels, so consumers are increasingly taking advantage of this by refinancing.

When should I refinance my existing auto loan?

As with any personal finance decision, it really depends on your individual goals. If your goal is to reduce the amount you are paying in interest, you may want to consider an auto refinance loan with the same or reduced term as your existing loan. If your goal is a smaller payment, you may want to consider extending the term remaining on your existing loan, although this may increase the total interest paid over the life of your loans.

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