Thursday, August 28, 2003
More Bang for Your Buck: Lowering Your Car Loan
Just like you can refinance your home, it's also possible to refinance your car. Tonight-- we're showing you how to lower that loan and get more Bang For Your Buck.
(WSVN) -- Whether you're a Mercedes man or a minivan mom, hot wheels come at a cost.
Elizabeth Morgan knows the feeling.
When she bought her S-U-V three years ago, zero percent financing was unheard of.
"I initially got an interest rate of 9.25 from the car dealer," she says.
Not exactly the best deal... So Elizabeth looked to recover by refinancing.
"I have a new rate of 5.95 and I knocked six months off my car loan and saved about $2,000," she says.
How did she do it? Many local and national lenders are refinancing online.
Their rates often under four percent.
Elizabeth used one of the country's largest auto lenders, people first - dot- com.
"Rates that consumers get from a dealership include mark-up that goes to the dealership," saysBrian Reed of PeopleFirst.com. "That's the big difference between the traditional auto finance process and doing business with People First. We give the consumer empowerment."
If you want to feel that empowerment, call the bank or lender who holds your auto loan and ask for a lower rate.
If they can't do any better, ask how much it would cost to pay-off the loan today.
Take that number and plug it into any online lender's web site.
If you like what you see, you can apply right online.
"It was really easy," says Elizabeth.
Even easier: Call the credit unions and auto clubs.
AAA- for instance - has low rates from eight percent to below four percent.
And when you add it up, that is a savings Elizabeth knows you can't pass up.
"Although I missed out at 0 percent," says Elizabeth, "I didn't miss out as much if I kept it at nine percent."
Remember, getting the lowest rate depends on three things: The age of your car, the length of the loan and where you live.
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