Jefanie Genilla
If you start to have difficulties in paying off your car loan at its current cost, today might be the perfect time to consider refinancing it. Auto refinancing allows you to take advantage of other loan products offered at a lower cost. If you’re interested, read this post to know how auto loan refinancing works and how best to do it.
Behind the luxurious facade of being a car owner is the toil of paying for the vehicle’s monthly amortization. For many car loan borrowers, paying the loan on top of one’s usual recurring expenses (e.g., rent, utilities) can become quite a struggle. And when the going gets tough, many even allow their provider to repossess their vehicle. If you’ve considered letting go of the vehicle you’ve already invested a lot in, think again. There’s actually another way to ease your burden of paying the auto loan without losing your car. This is what we call car loan takeout or refinancing.
Car Loan Takeout: In a Nutshell
A car loan takeout refers to the process of transferring from one loan provider to another. Auto refinancing is beneficial for various reasons. For one, this move is practical when you think you can no longer afford to pay your loan or when you’re eyeing another low-cost loan to take.
How it Works and How Best to Do It?
Transferring from one lender to another would require you to look into these three main aspects:
- Transfer of Legal Docs – For starters, negotiate with your current provider regarding your plan. You should get a detailed history of your payments because this is one of the requirements of your second provider.
- Eligibility – Applying for a takeout loan requires you to submit another set of documents, including your payment history from the previous provider. You should have paid at least 80% of the total mortgage for you to qualify for a refinancing.
- Interest rates and other cost components – Consider the big picture when it comes to choosing your next loan provider. To find a good deal, shop around, factor in all possible considerations, (e.g., APR, SRP, monthly amortization) then sum up the total cost you’ll be paying. By doing this, you’re going to save up a couple of pesos for the overall interest rate and the overall price.
Where to Start?
Doing your research is the best way to get started with auto refinancing. You can start by using an auto loan calculator to see how much you’ve paid and set an estimated budget for your next provider. Then browse Loansolutions.ph to gather info on the interest rates, requirements, eligibility criteria and features of the refinancing options on the market today. Use an online price comparison tool to identify the best provider to partner with. You can also call one of the experienced loan consultants at Loansolutions.ph to ask for guidance on the best car refinancing offers. Or better yet, apply directly via their 3-Step Online Application Process and make your application fast and convenient.
