A lot of cars are sold each year. And, it is a fact that due to the high prices of automobiles, most people can’t afford to pay cash for their cars so they need to arrange financing. In many cases, consumers arrange financing through the dealership that is selling the car. The dealership will get their customers a loan that will have monthly payments that the customer finds affordable. But in reality, these dealership car loans are not in the customers best interest. The customer can refinance their car loan with Ignition Financial and reduce their monthly payments at the same time.
You may be thinking: How can refinancing my car slash my payments? Well, you need to understand what goes on behind the scene in the world of auto financing. Car dealers have relationships with many lenders. All of these lenders are in competition with each other to make car loans. So, these lenders make deals with the people who sell cars to encourage them to arrange a loan through their bank.
The banks agree to loan the money at a set interest rate for the car. The dealer is then allowed to add his own interest to the loan that extra money is his to keep. This additional interest can range between 2 to 4 percent higher, or even more. The car dealer can raise the interest rate as high as he thinks he can get away with doing. Unfortunately, consumers are unaware of this process and how they are being duped.
Arranging auto financing is a very profitable part of a car dealers business. When you consider the price of cars, especially a new one, you can see that this extra interest can add up quickly. And the worse part is that you are paying for it all. However, you can take steps to get yourself out of this financial trap that you have fallen into. Refinance your car through a bank that offers lower interest rates.
The financial benefits to refinancing your car are enormous. The first benefit of auto refinancing is that you will have a lower monthly payment. This will free up money that you can use for other things. Or, you can use the money you save every month to make extra payments towards paying down the principle owed on you new car loan. Don’t delay. Refinance your car today to start saving money now.