Refinancing a car loan can reduce your total expenses each month. If you took out a car loan at a fairly high interest rate (if your credit was marginal at the time), you most likely should look into reducing the rate and payment with an auto loan refinance. There are competitive rates from which to choose, but before jumping into the financing market, you should be aware of several reputable auto refinance lenders who have proven track records.
Capital One is a large financing conglomerate mostly known for its credit cards. Its auto loans, however, are among the most available in the business. Rates are constantly fluctuating, but it's possible to get a refinance rate as low as 4.34 percent, as of January 2010. Benefits of Capital One Auto include competitive interest rates, no prepayment penalties (if you pay off the loan early), and quick approval--sometimes within 24 hours. It's also possible to handle the entire transaction online.
Wells Fargo is another large banking institution dealing primarily in consumer personal loans, mortgages and credit cards. Its auto refinance program, however, is reputable and competitive. While Wells Fargo's interest rates on car loan refinances typically track higher than those of Capital One, the bank is one of the few lenders to offer cash out on auto refinancing. Some customers are able to reduce their payments each month and receive money by refinancing. The auto loan program is also quick and can be handled online.
Bank of America is one of the largest banking institutions in the United States. Customers can qualify for an auto refinance rate of 4.34 percent, as of January 2010. Customers who sign on with Bank of America also get financial options available to all customers of the bank. Bank of America auto refinances can be approved in as little as 60 seconds.
