How to Compare Auto Refinancing

After improving your credit score, you may consider an auto refinance to see if you qualify for a lower rate. Lower interest rates on car loans can knock down the price of a car loan and save you money each month. Plus, auto refinancing works if you want to extend your auto loan for an additional four or five years, and reduce your monthly obligation. But before choosing a lender, compare different auto refinancing quotes to get the best deal.

Instructions

1

Pull out your current auto loan document. Review the document for information on your present interest rate, pay off date and prepayment penalties, if applicable. Knowing the terms of your existing auto loan helps you choose a new loan with better terms.

2

Apply for a loan with a loan broker website. Use an online loan broker website such as LendingTree.com to acquire multiple auto refinance quotes from different lenders. Refinance quotes are free, and there's no obligation to accept a quote you receive from a lender.

3

Get a quote from your personal bank. In addition to working with a broker to receive multiple refinancing quotes for an auto loan, check with a local bank or credit union to see if they can offer you better rates and terms on the auto loan.

4

Review each auto loan quote. Once you've acquired multiple quotes, do a side-by-side comparison of each lender. Compare refinancing offers by reviewing the quoted interest rate on each auto loan, the loan terms -- usually three, four or five years -- and the monthly payment on your new auto loan. This helps you assess which auto refinancing loan offers the most savings and the lowest rate. Pick the auto loan with the highest savings.