Buying a new car is expensive. The price of new cars has gotten so high that few people can afford to buy on without financing. However, even with financing car payments can be expensive. For a lot of people, the only monthly payments higher than their car payments are their monthly mortgage or rent payments. Unfortunately, many people view their high monthly car payment as something that they are just stuck with until the car is paid off. This is not the case. People can refinance their cars with Ignition Financial and save a whole lot of money.
Most people are familiar with the concept of refinancing a home. But unfortunately, people give little thought to refinancing a vehicle. Many of the new vehicles sold today are as expensive as houses are in a lot of areas of the country. And the interest rates charged on car loans is always a great deal higher than home loans. You may be thinking: How can I slash my payments by refinancing my car loan? The answer is simple once you understand the way car dealers arrange auto financing for their customers.
Car dealers are always advertising that they can arrange fast and easy auto financing for you. There is a reason for this: Car dealers make a lot of money from arranging financing for their customers. This is how the game works. Car dealers have a lot of lenders that are eager to make auto loans. These lenders allow car dealers to add extra percentage points to the car loans that they arrange. The dealer gets to keep this extra money. This is so profitable that many car dealerships hire finance specialists just to handle arranging the loans. Most consumers are unaware that the dealer is getting a kickback, and that they are paying for it.
A wise consumer that has been duped into this situation can get out of it by refinancing their vehicle. When you refinance your car you are dealing directly with the lender. You can cut out the middle-man and get your car refinanced at a far more attractive interest rate. Do the math and you can see that even lowering your interest rate by a few points will drastically reduce your monthly car payments. You can use this extra money to pay your car loan off sooner or you can save it for something else that you need. There is no downside to refinancing your car at a cheaper interest rate.