Four Auto Refinance Loan Sources

Outside of borrowing money from family or friends, or robbing a bank (not suggested), there are four sources for auto loan refinancing:

1. A local bank.

Your local bank can be a very convenient source for your auto loan refinance. Just keep in mind that they may not offer the most competitive rates for refinancing.

Even if their rates are competitive, they may not offer terms that you may need in order to successfully refinance.

For instance, if you need a 72 month auto loan to keep payments down, they may only offer 48 month financing.

In addition to this, you are certainly not going to get competing offers, unless you want to run around town and have your credit pulled at each new bank you apply to.

You may even have your credit pulled in vain, if they don't offer an auto refinance option for your credit situation or refinance needs.

2. A local credit union.

Credit union's typically offer pretty competitive rates and terms, but will you qualify?

Most credit unions are looking for excellent credit with no hiccups on your credit file.

As with your local bank, they may not offer the terms you need and you won't know how competitive their offer is unless you've done your homework.

3. A local car dealership.

They could be the reason you are looking to refinance in the first place.

Do want to trust them, again?

Not to mention, not all car dealership's will have a refinance option available and may try to pressure you into buying a new vehicle, with once again, unfavorable terms.

4. Apply online.

If you choose this option, there are two things to look for:

* First, does the company actually refinance vehicles?

A lot of online refinance companies claim they offer auto loan refinancing, but in reality, they are simply lead generation sites and will sell your information to car dealerships in your local area.

Be sure to read the fine print and know what they are doing with your information.

* Second, assuming you've found a legitimate refinance company, you'll want to know how they share your information with their lenders.

For instance, when you apply do they randomly submit your information to ten different lenders?

If so, that's not good!

All this does is rack up credit inquiries on your credit file.