Even when a credit-challenged driver does receive a car loan, the interest rates can be up over 20% making for high monthly payments and substantial economic waste. This borderline predatory lending practice is an example of the creation and maintenance of wealth concentration in a modern, seemingly democratic society.
But there is some good news. With today’s low interest rates consumers can save a substantial amount of money by refinancing their vehicle.
Refinancing a vehicle is not for everyone but it does make sense if a driver has high interest rate coupled with a high monthly payment. By lowering the interest rate many consumers are able to save over $100/mo. and over $4,000 over the life of a loan.
And with today’s rates refinancing definitely makes sense. Just dropping a rate a few points can drop the monthly payment and help a driver gain equity in an asset. But many drivers have not even considered car refinancing.
One reason car refinancing has not exploded is that consumers are leery of the term refinancing because it is solely associated with a home refinance. But car refinance is an entirely different beast. There is much less documentation and personal information that needs to be disclosed and it can move very quickly. While a home mortgage refi can take months with closing dates moving back again and again an auto refinance can be handled within a week
Some of the leading car refinance specialists can have a customer call in on a Monday and be refinanced by the end on the week. For many drivers with families an extra $1,200 a year can make all of the difference in the world.
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