Auto Loan Refinancing and Fees ‐ Will You Have to Pay?
If you are interested in auto loan refinancing, you’ll be happy to know there are minimal fees associated with a car loan refinance. However, when you are planning to refinance your car, you should consider a few things prior to signing your name on the dotted line of the new loan.
Understanding Auto Loan Refinancing
Most of the time, people think that, because they are refinancing their car loan, all they need to do is simply sign off on the paperwork and that’s it. Actually, it takes more than just signing off on the paperwork in order to complete your car refinance. You need to effectively communicate with the lender in order to better understand what is expected of you.
Ask questions of your new lender. You need to know if they cover any fees for paying off the old loan. Additionally you will need to know the fees that you are responsible for from your new lender. Ask about the terms of the refinanced loan. Will you be on a 36, 48, or 60 month repayment term. It is important that you know that a reputable car refinance lender will not charge you an upfront fee. If you have encountered such a lender, then you should avoid them, because that is not the standard auto loan refinance practice.
In addition to not charging a fee, usually a refinance lender will not require a down payment. It is not the standard practice of finance companies to do this. If you are told that you need to provide a down payment up front for auto lease refinancing, you may want to consider looking for another lender.
There are some fees that you will be responsible for, however, including the transfer of title fees and re-registration. This is standard fee practice, anything additional may be specific to your lender. This is why it is a good idea to speak with the lender at length in order to determine if there are any additional fees involved.
Research is the key to discerning what fees you will need to pay. Do as much comparative shopping as possible in order to find the lender that will be willing to work with your budget. If you do an internet search, you will find that there are many lenders available that handle car refinances. As you sift through the lenders listed, you should visit their frequently asked questions section of the website in order to see if they assess charges and ask them to explain any of the fees that are charged to you during the auto loan refinancing.