Buying a new or used car is a major purchase an investment. Next to buying a home, it is the biggest purchase that most people will make in their lifetime. In many cases, buying a car will require taking out a loan. Similar to refinancing student loans or mortgages, it can also be beneficial to refinance an auto loan. Those that are looking to slash my payments, should consider refinancing their auto loan through Ignition Financial. This company could benefit a bar were a number of different ways.
One way that Ignition Financial can provide a financial benefit to a borrower is by reducing their monthly payment. Auto loan payments can take up a significant portion of a consumer’s budget. If you have taken out an auto loan and are paying a high interest-rate, you could save a lot of money by refinancing your auto loan today. As long as your credit has remained intact and you have equity in your car, you could refinance into a much lower rate today. This will lead to an immediate reduction in your monthly payment due.
While reducing your interest-rate can reduce your monthly payment, you can also save money by extending your repayment time. With an auto loan refinance, those that have equity in their cars will have the ability to recast their loan over a new five or six year term. Doing this will extend the amount of time until your car loan is paid off, but will reduce your monthly payment in the interim.
Many consumers today are also able to use a refinance through a new auto loan to take cash out of their cars. If you have had your car for a number of years and have pay down your loan as agreed, you likely have some equity in your car. When refinancing your loan, you will have the ability to liquidate some of that equity. The money that you received can then be used for any purpose you want including paying down higher interest-rate debt, making home repairs, or even taking a vacation. The money that you do take out of your car will then be applied to your new auto loan balance.