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That new car you bought sounded great at the time, but now that you are making monthly payments, it doesn’t feel so great.
You might feel like you are stuck making payments until your loan is paid in full.
In the past, this was typically the case, but thanks to Gravity Lending, you can refinance your auto loan and save money.
In this post, I’ll walk you through the reasons why you should consider refinancing your auto loan, why Gravity Lending is the best option for refinancing and how you can save an average of $134 a month on your auto payments.
Reasons For Refinancing Your Auto Loan
#1. Loss Of Income
Life happens and as a result, money can get tight.
Maybe you or your partner lost their job or had their hours reduced at work.
This loss of income may put a strain on your budget.
By refinancing your car loan, you can lower the amount of your monthly payment, making it easier to get by financially.
A common reason for refinancing is the end of a relationship or a divorce.
To satisfy the terms of the agreement, you might have to come up with some cash or lower your debt to income ratio so you qualify for a house or can rent an apartment.
In other cases, sometimes you will need to remove a co-borrower from an existing loan.
#3. Save Money
Another reason for refinancing your auto is to simply save money.
You might want to build a larger emergency account or invest your money in the stock market.
Or because of inflation, you might want to lower your bills so that you have more money in case prices continue to rise.
Gravity Lending’s customers save an average of 25% on their monthly car payment.
Also, they do not charge for their services, making them a great option when refinancing.
#4. Better Credit Score
Your credit score may have improved since you took out your car loan.
With a higher credit score, you may now qualify for a lower interest rate on your loans, lowering your monthly payment and saving you money.
Refinancing your auto loan is a simple way to take advantage of this.
#5. Remove A Co-Signer
If you needed a co-signer when you bought your car you can refinance and take them off the loan.
For example, maybe you were fresh out of college and needed a co-signer on the loan since you had a short credit history.
But now you have a longer credit history and no longer need them on the loan.
#6. Pay Off Debt
Some people who have a lot of debt and are looking to pay it off consider refinancing their debt.
By refinancing your auto loan, you can lower your monthly payment and save on interest over the life of the loan.
And you can take this savings to pay down high interest rate debt faster.
This can result in paying off the debt earlier than if you didn’t refinance.
#7. Lower Monthly Payments
Finally, you might want to lower your monthly payments simply for more freedom.
Maybe you are considering changing careers and the new salary you earn will be lower.
To make it work financially, you may need to reduce your expenses.
Refinancing your auto loan is a simple way to do this.
Gravity Lending customers save an average of $2,846 over the life of their loan.
How To Refinance Your Auto Loan
Now that you see the reasons to refinance your car loan, how exactly do you do it?
The good news is the process is simple and fast.
However, you do need to do a little bit of leg work.
For starters, you need to determine if auto refinancing makes sense for you.
To do this, you need to look at the interest rate you are paying, how long you will be making payments on your current loan, and the age and condition of your vehicle.
You will also want to look into your credit score and if your current loan has any prepayment penalties.
Most do not, but you need to verify this information.
Once you determine auto refinancing makes sense for you, you need to gather documents.
These include the following:
- Proof of income
- Proof of residence
- Auto insurance policy card
- Driver’s license
- Vehicle information
- Current loan statement
After you gather these items, you can find a company to refinance with.
But what one do you choose?
There are a handful of companies out there that offer auto refinancing, but Gravity Lending is the highest-rated auto refinance company in the market.
Who Is Gravity Lending?
Gravity Lending was founded in 2015 and is rated A+ by the Better Business Bureau.
They specialize in helping consumers refinance their auto loan in a fast and easy manner.
What makes them stand out when you work with them?
One application gets you multiple refinance offers from lenders nationwide, which allows you to compare offers and find one that works best for your financial situation.
If you didn’t use Gravity Lending, you would have to spend hours submitting applications to every single lender, and deal with multiple lending officers vs. working with one dedicated loan officer.
Other benefits include:
- Loan terms from 24 months to 84 months
- Interest rates as low as 1.99%
- Loans can be funded in as little as 48 hours
- Up to 90 days no payments
- Apply and sign from your computer or your phone
Gravity Lending does not charge you a fee for their service.
However, understand there are some fees when you do refinance, including title transfer fees.
How much money can you save by refinancing with Gravity Lending?
The average person saves $134 a month and $2,846 overall on their auto loan.
Click here to get your refinance quote and see how much money you can save!
In addition to auto refinancing, Gravity Lending offers other products to help you minimize the risk of financial loss.
These products include:
Guaranteed Asset Protection (GAP)
This covers the difference between the amount you owe on your loan and what your car is worth.
Using this product helps to minimize the chances of owing a large sum of money if your car gets totaled in an accident.
This allows you to recover up to $10,000 of your vehicle’s equity in the event of a total loss.
Vehicle Debt Protection
Extends the manufacturer’s warranty on your car.
It also covers rental car allowance and roadside assistance.
Vehicle Protection Plan
This protects you from unexpected repair costs including windshield repair, cosmetic wheel repair, road hazards that affect your tires and wheels, key replacement, and more.
Understand that you can elect to include these products when you refinance.
You don’t have to choose any or you can choose the ones that make the most sense for you.
Finalizing Your Refinance
The final step in refinancing your auto loan is to pay off your old loan and start making payments on the new loan.
Many times new payments don’t start for 90 days, so you’ll get a car payment break if you so choose.
In most cases, the payoff of your old loan is made by your new lender.
All that you need to do is start making payments on your new loan when you get your monthly statement.
At the end of the day, if you have an auto loan, it could make sense to refinance it.
Not only could you shorten the term of your loan, you could also get a lower interest rate saving you money every single month.
Imagine having an extra $134 a month to help you pay off high interest debt, save for other financial goals, or simply to improve your current financial situation.
This can be a reality if you take the first step and refinance with Gravity Lending.
Click this link to see how much you can save by refinancing your car loan and be sure to follow Gravity Lending on social media!