Refinancing a car loan can help lower monthly payments and free up cash for other parts of your budget. Refinancing is the process of one lender buying your debt from another lender, in this case your car loan. If you purchased a car with a high interest rate either because of the fluctuating market or dealer financing, you may be able to save a considerable amount of money by financing through a different lender with a lower rate. Refinancing a GMAC loan with another lender is a straightforward process.
Call GMAC and ask for the payoff amount on your auto loan. Also ask if any fees are associated with a payoff. Your loan might incur fees for payoffs made within one year of the car's purchase.
Locate the 17-digit Vehicle Identification Number (VIN) from your car's dashboard (driver's side) or from the engine block. The VIN is also available on your registration card.
Log on to Bankrate.com (listed below in Resources) to check out lenders. Provide your VIN, name and Social Security number to lenders you would consider working with. This will allow them to check your credit history and gauge your vehicle's worth.
Choose a new lender based on their reputation and the payment terms. You want a lender who is willing either to absorb closing costs into the loan or who offers low to no closing costs for refinancing. You also should look for low monthly payments with a reasonable payoff schedule, say two to three years, to save on interest charges.
Upon closing your new loan, the lender will handle the rest of process. They will contact GMAC and work through the title transfer (there are sometimes state-specific requirements) and will send a check to GMAC for the loan payoff amount. Your job is done once you have provided GMAC's contact and address information to your new lender. While each situation varies, you should expect to close on your new loan within seven to 10 days.
