What does auto refinancing mean? Also, can I use an auto loan to pay off my car payments?

Answer 1

Refinancing is getting a loan from one source to pay off the loan that you have with another source. This is usually done to reduce the interest rate. For example, if you financed a car with the 1st National Bank of Yourtown and the interest rate was 14%, and you can get a car loan from the Yourtown Credit Union for 8.5% you would take out the loan at the credit union, and use that money to pay off the loan at the bank!

When you refinance you pay off the first loan, so there are no more payments due to that finance source!You will have a car payment that you have to pay to the new finance company.

Answer 2

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Answer 3

Why did you sign that loan at the beginning? don't get pissed on the credit Union, get pissed at your self for no longer doing all your homework. no one compelled you into accepting those words. With a 725 credit and as long as you have a low debt to earnings ratio and you'll be able to tutor valid earnings you ought to have qualified for a fee of around 4%. yet right here is the issue with attempting to refi a used motor vehicle. you probably haven't any fairness interior the motor vehicle. you in basic terms offered it. you probably owe the economic business enterprise extra desirable than the motor vehicle is easily worth because of the fact the depreciation outpaces the non-public loan payoff, fairly a severe pastime loan payoff. So without fairness a refi is going to be next to impossible, Plus whether you decreased your pastime fee by using 6% your charge is barely happening $25 a month. that's no longer adequate to bypass by using the fee and the worry of the refi. Do your examine, seek for a miles better fee and if somebody provide you with a low fee it fairly is clever take them up on their grant. yet refinancing a motor vehicle loan isn't an undemanding activity.