Tresl Blog
If you’ve ever researched loans and gotten overwhelmed with terms like car loan pre-qualification, pre-approval, and approvals, then you’re not alone. That’s why we’ve developed this handy-dandy guide.
You likely can’t predict the rate you’ll get just by polling your neighbors. Still, a little research never hurts. Here’s the latest data on auto loans—and more importantly, how you can improve your odds of securing a good car loan rate yourself.
Most car loan contracts list two rates, your APR and your interest rate. The higher the APR, the more you’ll pay over the life of the loan. Lenders will give you both rates on your car loan paperwork so that you can better understand your loan.
When you refinance a car, you replace your current car loan with a new loan of different terms. In practice, auto refinancing is the process of paying off your current car loan with a new one, usually from a new lender.
A car lease buyout is different than buying a typical new or used car. Not only do you have knowledge of your leased car’s history but you have a few financial considerations that are unique to car lease buyouts.
Most car loans use simple interest, a type of interest of which the interest charge is calculated only on the principal. Simple interest does not compound on interest, which generally saves a borrower money.
At a basic level, refinancing is the process of replacing your current car loan with a new one. While people refinance their cars for many reasons, you ideally want to reduce both your monthly payments and the cumulative interest charge you pay over the course of your loan.
Most people refinance a car loan to 1) lower their monthly payments, 2) decrease their interest rates, or 3) remove (or add) someone on their loans. Let’s look at each reason for refinancing.
You may have the option to buy a company car when your employer or its fleet management company removes vehicles from its fleet. When you buy a company car, you get two primary advantages over other car purchases: a low price and great information on its condition.
Most people refinance their car loans when 1) their credit has improved, 2) they need to lower their monthly payments, 3) national interest rates have changed, or 4) they would like to remove (or add) someone as a co-signor on their loan. Let’s look at each scenario.
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