CAR LOAN REFINANCING 2009

“If you would know the value of money, go try to borrow some; for he that goes a-borrowing goes a-sorrowing.” - Benjamin Franklin (1706 - 1790)

The concept of refinancing is not complex, and is appropiatly illustrated with the repayment of a home moorage.  When refinancing a home mortgage, on you use a new loan, to pay off the current loan. This is the essence of this financial concept, widely utilized today.

The finance industry has managed to keep refinancing of cars a well kept secret.  That’s because utilizing the refinancing method, saves borrowers lots of cash.  Many people have come to reap the benefits of home mortgage refinancing. However, few consider the concept of car loan refinancing to be of much benefit. People with blemishes on their credit history, are among the first to reject the scheme of car loan refinancing, as a viable financial alternative in this economy.

Use the same principles that apply to home mortgage refinancing, to engage in auto loan refinancing.  Essentially, you shop around for a different lender, offering lower interest rates on your current auto loan. Then borrowing the money through this auto loan refinancing method, you pay off the higher loan, and settle in at a new lower auto loan refinancing rate.

Generally this will ease your financial constraints, as the new suv loan refinancing rate, will be lower than the previous auto loan financing charges.  The result?  Lower monthly truck/car payments, for you. Car loan refinancing done properly, can also enable you to pay off your car loan in a shorter duration of time.

The time value of money is a financial concept that eludes many people.  The very fiscal fact is, that the longer you pay for a loan, the more money you will outlay, on interest.  For example, a $16.500 auto loan, payable in 60 months, with a poor credit rating, approved at a 21% APR, gives you a monthly payment of $446.38.  However, at the end of the loan, you total outlay will be $10,282.83 in interest charges.

That same vehicle, purchased with truck/car loan refinancing, from a lender willing to finance the car at 6%APR,  will net you a monthly note of $318.99, saving you a total of $7,653 in interest charges over the life of the loan, simply by utilizing the principles of car loan refinancing. Better financing may allow you to pay off sooner too!

Homeowners woke up to the reality of fiscal savings to be gleaned from home mortgage refinancing during the 2001 and 2002 housing boom. Car owners are now starting to follow suit. Find lower interest rates, available with small research, auto loan refinancing is the next trend, to save on that new car buy.

‘Lack of money is the root of all evil.’ -George Bernard Shaw. Irish dramatist & socialist (1856 - 1950)

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