It feels great to go out and buy a new car. You probably have gotten real tired of driving around in an old unreliable vehicle. Before you go to the car dealership, you probably have a good idea about the type of car that you want to buy. You also have a ballpark figure in your mind about how much of a monthly car payment you can afford. However, you probably didn’t give much thought to how you are going to finance the car. This is probably because all car dealers promise quick and hassle-free financing for everyone. So, you just have to choose the car that you want and let the dealer handle the financing. While this seems like the right thing to do at the time, it can come back to haunt you later.
While getting car dealer financing is easy, it can be very expensive. When a dealer gets a loan for you, he has a deal with the lender that allows him to add on some extra interest for himself. This extra interest on the loan is called the “contract rate.” The car dealers make a great deal of money from this lucrative financial system. The problem is that every extra interest point is costing you a great deal of money over the term of the loan. It is also why your monthly car payments are higher than some other peoples’ payments are on a similar vehicle.
Once you realize that you are paying to much interest on your car loan, you may start asking friends: How can I slash my payments? You will find out that the best way to cut your payments is to refinance your car with Ignition Financial. When you refinance your car you will immediately realize the benefits. First, your monthly car payments will be greatly reduced. This will leave you with extra money every month that you can put to good use. You may choose to use the money that you have saved to pay your car off early.
Another option that you have when you refinance your car is to shorten the length of the loan. This will allow you to pay your car off early and save a great deal of money at the same time. Any way you look at it, refinancing your car at a lower interest rate is the right thing to do in your situation.