Car Loan Refinance Types

A car loan refinance can save you hundreds, and sometimes even thousands, of dollars, over the course of a loan.

If you got a car loan through your dealership and your credit has improved since then, you may be able to refinance at a much lower interest rate through a company designed for this purpose. These companies can primarily be found online and will refinance car loans on which you typically still owe $7,500 or more. If the amount you owe on the loan is smaller than that, you usually won't be able to get refinancing through one of these companies. Make sure the company is legitimate, and you may be able to get a very high interest rate lowered to a single digit APR.

If the amount you owe on the loan is less than $7,500, you may be able to get car loan refinanced through your local bank. However, this will only be possible if you've been making your payments on time and have managed to improve your credit since you took out the car loan. If this is the case, you may be able to get car loan refinance in the form of a personal loan that you can use to pay off the original loan.

When you're looking for car loan refinance, know what's on your credit report before you apply. If your credit report is riddled with late payments and other problems, trying to refinance might prove frustrating.

Remember that there is no need for anyone to do an appraisal on your car. For car loan refinancing, they only need to know how much you still owe on the car.