ConsumerWatch: Auto Refinance Options Expanding
SAN FRANCISCO (CBS 5) – Refinancing your car loan has become more of an option lately as the economy continues a slow recovery, with more companies offering auto-refis with favorable terms, according to industry experts.
While those holding loans with an interest rate above 7 percent and who have paid less than a year are the best refi candidates, even those with an already-low interest rate could stand to gain from a switch, according to Edmunds.com analyst Philip Reed.
“You don’t want to extend the loan for a year or two more,” said Reed. Those who have had the loan for less than a year could see several hundred dollars in savings over the life of the loan.
Reed notes auto-refis are much easier and quicker than refinancing your home, there is far less paperwork, and the only fee consumers should have to pay is the title transfer. You can expect to have to sign a new 60-month term loan, but other terms may be available.
Credit unions have traditionally offered the best auto-refinance options. For those who aren’t credit union members, there are any numbers of firms found online offering similar terms.
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