Looking at your monthly expenses? Maybe you’ve been getting ready to do your taxes and you’re sorting through all those receipts, monthly statements, and bills for the year, comparing interest rates, calculating payments, and figuring your budget for the coming year? Maybe you’re looking for ways to put a little extra cash in your budget? Perhaps you’re reviewing your credit score and the improvements you’ve made over the past year? Or maybe it’s just time to think about replacing your current vehicle with one that’s more reliable, or newer, than the one you’re driving?
Whatever your reason for looking at your finances and where you can save money, the one area that you shouldn’t overlook is your auto financing. Even though you already have an auto loan, it doesn’t mean that you have the best auto loan for you or your current financial situation. Especially if you’ve made significant improvement in your credit score, refinancing your auto loan could be a smart move. Typically, if you have a low credit score when you buy a new vehicle, you pay a much higher interest rate than if you have a good to excellent credit score, so if your credit score improves, you’ll definitely want to consider refinancing later on. Not only could you see huge savings over the length of the loan, but you could also lower your monthly payments, putting more money into your budget!
And if you are looking for a new or used vehicle? You’ll definitely want to see what your options are BEFORE you go to the car dealership! Remember, the dealer usually gets a finder’s fee for that car loan, so their financing options are not always your best option. Know what you can do before you go and you are far more likely to get the best deal for you.
Here are some options that you’ll want to consider when it comes to auto financing: