How Technology Has Changed Auto Refinancing

Written by Banks Editorial Team
3 min. read
Written by Banks Editorial Team
3 min. read

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In recent years, the pandemic has changed how businesses do business in many industries. This is especially true for financial institutions that offer auto loans, including refinancing. Consequently, it’s now easier than ever to find the right lender, apply and finalize transactions directly from your computer, mobile phone or another electronic device. 

Refinance Your Auto Loan

Shift To Digitizing Auto Lending Programs

Technological advancements have led to the emergence of loan origination software. As a result, lenders who may have had trouble gaining visibility can now compete with more established lenders in the marketplace as they’re now able to leverage software to expand operations and reach more borrowers. 

Benefits Of Digital Technologies In Auto Lending

Here are some key advantages of digital technologies in auto lending: 

Saves Time

You don’t have to spend time printing out a paper application or visiting a branch to pick one up, gathering tons of documents and making copies for the lender, and dropping the entire package back off to the loan officer to be considered for a loan. (Whew! That was exhausting just to type). Instead, you can apply online in minutes and upload your documents right away to save time. 

Saves Money

The days of auto lenders needing tech equipment, server rooms, and a vast IT department are long gone running operations. Cloud technologies now make it easier for lenders to operate without all the bulky equipment and IT staff, and they can pass the cost savings on to you. 

More Lender Choices

The evolution of cloud technology makes it easier for new lenders to enter the industry. Consumers now have more options to choose from, including online lenders. In addition, they aren’t limited to auto refinance loans from traditional banks and credit unions. 

Faster Loan Approvals

Most loan applications are now processed electronically, which facilitates the review process. You’ll also get a lending decision faster than you would with a paper application that requires a manual review. 

AI-Driven Lending Technology

Financial institutions often use artificial intelligence programs in the automotive lending industry to make informed lending decisions. As mentioned earlier, this facilitates faster loan processing and helps the lender close more deals faster. 

Refinance Your Auto Loan

More Accuracy With Digital Form Processing

It’s more challenging for humans to spot errors and discrepancies with auto loan applications. And before the process became digital, borrowers often faced delays if an issue was missed by the loan officer and caught during underwriting. But with digital form processing, it’s now easier than ever for financial institutions to identify problems with applications and promptly notify the potential borrower to make the necessary corrections or remedy the issue. 

Easier Customer Communication

Automations make it easier than ever for lenders to communicate with customers regarding the status of their auto refinance applications. Most lenders also have built-in features that allow customers to submit inquiries electronically and receive a response in real-time or within one business day. 

Where to Find An Auto Refinance Lender That Leverages Technology

When researching auto lenders, you’ll find that most offer features that leverage technology to their customers. But if you want an online option that simplifies the start process from start to finish, look no further than Auto Approve

It’s an online tool you can use to find competitive auto loan refinancing offers and lower your monthly payment. Auto Approve features an extensive network of lenders nationwide that offer low-interest rates on refinancing. 

 Here’s a step-by-step breakdown of how the platform works: 

  • Step 1: Request an online quote to view prospective loan offers from banks, credit unions and finance companies in Auto Approve’s network of lenders. In most instances, you’ll get an online quote in just a few seconds. 
  • Step 2: If there’s a match, you can consult with a member of the Auto Approve team to choose the best option. You’ll also need to complete a formal application and provide some personal information, along with a copy of your driver’s license, current proof of insurance and registration, recent pay stubs (or other proof of income) and the finance contract for your current auto loan. 
  • Step 3: Auto Approve will take it from there and coordinate with the lender to finalize your loan application and title documents to get an official approval. 
  • Step 4: Review your auto loan documents and sign electronically using an e-signature to seal the deal. Auto Approve will also coordinate with the DMV to handle the vehicle title and ensure you’re all set. 
  • Step 5: Start making monthly auto loan payments to the new lender. Some lenders let you skip up to three payments to keep more of your hard-earned money in your pocket. You can also use these funds to help change or improve your financial situation. 

It’s that simple. You can assure that Auto Approve is getting you the best deal on refinancing. Auto Approve doesn’t mark up interest rates to turn a profit, so what you pay in interest is what the lender offers. 

Visit Auto Approve’s website today to fill out the form and request a no-obligation quote or request more information. It’s free and won’t impact your credit score. Even better, you could qualify for an APR as low as 2.25 percent and get a better deal on your car loan.

Auto Approve

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