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