The idea of car refinancing is one that has been around for several years. It is a great way for auto loan customers to avoid paying more than they need to over the length of the loan as well as securing a lower monthly car payment. One reason why car refinancing has become so popular is because dealerships generally tend to markup interest rates when car buyers finance their vehicles through the dealership.  Plus, refinancing your car is a simple process that is similar to refinancing a mortgage but usually takes less time and requires less paperwork. You fill out a short application, present specifics on your current lender and car, and in no time you will be on your way to lowering your monthly car payment and saving hundreds of dollars over the life of the loan.

There are a few things you need to know as you enter the car refinancing process. First, be sure to find a lender that best fits your needs. Most auto loan companies offer refinancing choices, but you want to find the deal terms the are best for you. These include the interest rate and term options for how long you can finance the new loan.  Also look for which company can offer the a lower monthly car payment as well as great customer service. When shopping for the best deal, be sure to have the following handy: the lender title and/or your VIN, current interest rate, current payment amount, car make, model and mileage.

Additionally, you must decide the term length that is right for you and whether your goal is to lower your current payment, rate or both. A longer term will imply you are looking for a lower monthly car payment; however if you choose a longer term you will also end up paying extra interest over the life of the loan. That may be ok depending on your individual circumstance. If you are having trouble affording your existing payments, this may be the most suitable choice for you.

The next tip when looking at car refinancing is to choose the best payment date for your overall budget or when you get paid. Most lenders will allow you to choose between the first of the month or the middle of the month. Some will also let you choose toward the end of the month. Take time to research the lender and after a few clicks of your mouse, you will be on your way to potentially saving hundreds or even thousands of dollars over the life of the loan.

You can discover more information about car refinancing and lower monthly car payments on-line at www.OpenRoad Lending.com