| If you decide to use your dealer's car | | | | apply, the more money you can save. However, |
| finance loan, make sure to negotiate for a | | | | if you refinance after the fourth year your |
| lower interest rate. There should be some | | | | savings will not be as much. |
| negotiation room as dealerships usually have | | | | |
| several loan sources, each with its own | | | | When shopping for different refinance car |
| interest rate level, such as the | | | | loan packages, make sure to evaluate them not |
| manufacturer's credit company or the local | | | | just on the interest rates offered. Compare |
| bank. You should also investigate other | | | | also other fees related to the loan, |
| sources, such as your bank or credit union. | | | | prepayment penalties, and the terms for the |
| | | | conversion options. You should also find out |
| You should seriously consider a car loan | | | | the lock-in period for the different loan |
| refinancing if you initially did not get 0% | | | | packages. The lock-in period is the period in |
| to 3% APR car loan from the dealer or bank. | | | | which the interest rate quoted to you is |
| By refinancing your car loan, your current | | | | guaranteed, and ranges from 30, 45 to 60 |
| loan is paid off with the new loan coming | | | | days. The longer the lock-in period, the |
| from a different lender at a lower interest | | | | higher the price of the refinance car loan. |
| rate. You can save more money with lower | | | | |
| monthly car loan payments thanks to the lower | | | | With your savings from refinancing, you need |
| interest rates. You will also be able to | | | | to put it to good use. If you continue to |
| accelerate your car loan payoff in a shorter | | | | make the same payment amount, you will be |
| period of time. | | | | able to reduce the principle owed much |
| | | | quicker. If you lower the monthly payment to |
| It makes more sense to refinance your car | | | | the new required amount, you won't be paying |
| loan earlier as the interest is usually paid | | | | it off sooner, but at least you will be |
| in the earlier payments. The earlier you | | | | paying less. |