Refinance your auto loan to lower interest rates, reduce monthly payments or get cash. Read about the refinancing process and find a lender that best fits your needs.
Who Qualifies for Refinancing?
Despite the close to 100,000,000 active car loans in the U.S., less than 5% of those loans are refinanced. What accounts for this low number comes in two parts:
- Americans are simply unaware that by refinancing their auto loan, they can save thousands of dollars over the course of their loan.
- The process of refinancing your auto loan is far less than convenient. It often requires hours of back and forth emails and phone calls to find out what your total savings could be.
In reality, anyone who is making their payments on time and in full will qualify for refinancing at some point over the course of their loan.
WithClutch is the solution to a lengthy and inconvenient refinancing system that quickly and seamlessly allows you to compare lenders and find the lowest rates and payments available to you.
Why Should You Refinance Your Auto Loan?
There are several reasons why you may want to refinance your auto loan. Understanding what refinancing involves ad the different options, you have depending on your situation is key to ensure you save money on the process. Read below some things to consider before deciding the refinance provider you will use:
- The interest rate you pay for your auto loan is largely dependent on your credit score. This can vary dramatically when comparing someone with good credit versus someone with bad credit.
- The difference in interest rates for someone with a credit score above 700 compared to someone below 550 can be over 15%. Meaning you will pay drastically more over the course of that loan.
- Small changes to your Credit Score will help you pay less over your loan course through refinancing.
- Auto loan companies make more money off customers who make all their payments. Through refinancing your loan, you will end up paying them less and saving yourself money.
- WithClutch can help you find better financing terms through their simple and fully online process.
Auto Loan Lenders
View here some of the lenders offering auto loans:
Auto Credit Express
Auto Loan Refinance Companies
Understanding the different types of refinancing companies and their role in the refinancing process is important for saving money.
See below the different types of lenders and providers and what their role is in the process of refinancing:
- Lenders: Primarily Banks and credit unions whose goal is to replace your current loan with a new one, just at a lower rate. When refinancing through a lender, you will not compare rates, leaving only the option to accept or reject the offer.
Examples of Lenders: CapitalOne, LendingClub, LightStream, Navy Federal
- Refinance Brokers: These companies are not lenders themselves but have created a marketplace that connects the lenders and the customer. While they can help customers figure out which lender would be a good option for them, these companies are looking to sell customers GAP insurance and extended protection products to make money for themselves.
Examples of Refinance Brokers: AutoApprove, Autopay, Clearlane, Motorefi
- Affiliate Websites: These companies are not aiming to assist you in refinancing your loan but are instead attempting to get you to submit your contact details. They will then make money by selling off your contact details to refinance brokers or lenders, who will then pester you with emails and phone calls.
Example of Affiliate Websites: Bankrate, CreditKarma, LendingTree, CreditSesame
Why Refinancing With Clutch?
What separates WithClutch from the rest of the pack is that they have a fully digital end-to-end process.
Being fully online helps you avoid working with a firm that wants to hassle you with emails, phone calls, and text messages. Often even after jumping through all the hoops, these firms ask of you, it can still take a whole week to get you into your new / better loan.
With such an easy-to-use online system, more Americans will be able to find refinancing options they would be otherwise unaware of.