Online Auto Loan Refinancing

Written by Jeremy Horelick
Bookmark and Share

More and more car-buyers are choosing to lock in lower rates on their refinancing packages by applying for loans online. Not only does this save them the headaches of printing out forms, sending them back and forth, and driving to and from the post office, it also ends up saving money for everyone involved. Lenders save by eliminating their overhead costs and, if they're wise, pass those savings onto their applicants.

To get started with your own online re-fi application, you'll need to supply a few important pieces of information. First, you'll need to specify what type of vehicle you're driving. Rates fluctuate depending on whether you're purchasing a new car from a dealer, a used car from a dealer, a used car from a private party, or refinancing an existing vehicle. After that, you'll have to indicate the preferred term of your loan, the loan amount, and your state of residence.

Finding the Lowest Price

In addition to all the lenders out there who have made their products and services available on the Web, there are also brokers who act as go-betweens. These companies aggregate data from across the state or even the entire country, then work to match you up with an appropriate lender. The broker may take a small fee from the lender in return for directing customers its way, or it may operate a "free" site and collect ad revenues instead.

While you may find cheaper prices online by working through a broker, there's something to be said for convenience as well. Some lending institutions offer auto refinancing in addition to their higher-end products, namely mortgages. If you have a pre-existing relationship with a mortgage lender, it's worth inquiring about their auto refinancing services as well, especially if you've had good luck working with this lender in the past.

Bookmark and Share