Car Refinance Companies

Written by Jeremy Horelick
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Car refinance companies are not only in business to help you save money; they're there to earn profits of their own as well. To that end, each refinancing company has its own particular terms and conditions that applicants must agree to meet. Some of these are straight-forward and understandable. Others may seem strange, especially to first-time re-fi candidates.

If your credit is immaculate, you'll be held to few, if any, restrictions. Any signs that you are able to repay your loan on time and in full work in your favor, as these help lenders hedge against risk. While you may know that you're not a credit risk, your prospective lender does not. Thus, in the world of finance, responsibility is rewarded with more favorable terms. When you consider that lenders are competing for the most qualified borrowers, this makes perfect sense.

Your Re-Fi Company's Terms

While some companies will allow you to refinance any type of vehicle you please, others restrict you to cars and trucks. Recreational vehicles, motorcycles, ATVs, and custom-built cars are typically off-limits. You may also be forbidden from refinancing any sort of commercial vehicle such as a taxi or limo. If your car has no VIN or accompanying paperwork, it's also a safe bet that your refinance company will back away.

It's also common business practice for refinance companies to require pre-existing liens on the vehicles in question. That is, the company will not simply agree to refinance more than the balance of what you owe, then hand you a check for the difference. While you may find this option on certain types of home refinancing products, it typically doesn't pay for companies to apply this to their auto loans.


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