Many people have purchased a car, and then financed the price of the car through the dealer or a used car company. The terms of such an arrangement can cover the gamut of various plans and terms, but it is likely if the agreement was through a dealer or used car lot, there is room for improvement.
The interest rates may have been higher when the deal was originally done. The terms of the financing contract may have been unsuitable for the buyer. Just financing through a dealer will usually mean that the payments would be higher than if they had gone through a bank or credit union.
Now, Ignition Financial in Austin, Texas offers an automobile refinancing plan where customers can usually get better rates, and thus save money. Depending on one’s credit and financial situation, is is possible. It doesn’t hurt to find out, as Ignition Financial offers a free look to determine whether or not a person could save money with the process. If a consumer can refinance and save money, they can say with confidence, “Slash my payments right now!
The money that is available for automobile financing is provided by large lenders and banking institutions. These entities are in fierce competition with each other as the vie for the business of automotive dealers and used car companies. To get the business of the dealers, they constantly have to offer incentives.
The lender will set a base rate of interest initially, called the “floor rate.” Then the dealer or used car company is offered an incentive rate on top of the floor rate. This is usually in the range of an additional 2% to 4%, which is then paid to the dealer at closing.
The result is that the consumer pays a higher interest rate, and he or she is not always aware of it. Many people will finance through a dealer because they don’t know any better. They could probably do better if they go through their bank or credit union.
By using Ignition Financial to refinance their current car loan, people can save considerable money which can then be put to better use in other areas of a family’s budget.
Having extra funds for savings, college education, new appliances, car repair, medical bills, home improvement, retirement, new furniture, and even another vehicle are all valid reasons for diverting car payments to other needs. Call Ignition Financial today and find out how refinancing your auto loan can help you!