Friday, November 9, 2012

The Best Sources for Refinancing Auto Loans

Whether the economy is running on all four cylinders or struggling with high unemployment, consumers should explore all options to obtain the best auto refinancing terms. The first step is to obtain the most recent credit report from all three major bureaus (Experian, Equifax and TransUnion) in order to leverage a good report or otherwise accept the available options.

Banks

    Local banks are often a convenient refinancing source for auto loans. As generally conservative lenders, they tend to prefer working with customers who have excellent credit and are looking to refinance a newer model car. These parameters usually limit choices to vehicles no older than four years with under 50,000 miles. However, like any retailer, banks are interested in keeping good customers happy, so a conversation with the branch manager can be quite useful.

Credit Unions

    Credit unions typically offer competitive terms on auto refinancing, and in common with banks they look for applications with strong credit profiles. They are, however, much less strict in considering the car's age and miles. Also, given the affiliations with employers, unions and other organizations, credit unions are good sources to approach with less than ideal credit backgrounds.

Online Sources

    Consumers should be equipped with the best information when looking to refinance their cars, and the most reputable online sources provide comprehensive information. The best sites are those that directly refinance and are not lending middlemen or loan brokers, who can end up sharing personal credit information with a dozen possible lenders. Online lenders know the auto market intimately and can work with all types of consumers and vehicles.

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