subject: Auto Refinance - the top 5 myths corrected [print this page] Auto Refinance - the top 5 myths corrected
As with many financial products that include a credit application, loan package and funding process, auto loans and auto refinances are not always easy to understand.
Many consumers have misconceptions about the difficulty of obtaining a car refinance loan as well as the process of applying and completing the loan. Five of the most common "myths" around car refinance are:
1. I'm self employed, so why even bother applying
Being self-employed does not mean you cannot be approved to refinance your vehicle. Just like any other applicant, your incomeshould beverifiable. For self-employed borrowers, this will usually means tax returns for the last 2 years (some banks also accept bank statements).
2. My vehicle must be appraised before I can refinance it
Contrary to refinancing your condo, house or flat, refinancing yourcar does not require an appraisal.No needto worry about incurring appraisal expenses and scheduling appointments. Lenders determine the value of your car by using Kelly Blue Book, NADA or a similar tool.
3. It's expensive to refinance my car
Most lenders do not charge application or closing fees when you refinance your vehicle. Depending on your residence state, a title transfer and/or registration fee may be due, whichnormallygoes from $5 to $65. Mostauto refinance lenderspay the fee on the customer's behalf, and just add it to the refinanced loan amount.
4. My previous credit problems won't allow me to qualify
60% of the U.S. auto finance market is estimated to be non-prime. This means lenders understand that consumers can hit a bump in the road, and have become comfortable lending to customers with less than perfect credit. Even applications with previous Chapter 7 or Chapter 13 bankruptcies can be approved nowadays, provided that the bankruptcies are discharged. Some lenders even specialize in financing customers with previous credit problems - RoadLoans is a good example.
5. I takes too long to apply for an auto refinance loan
Completing an auto refinance application is fast an easy. It usually just takes a few minutes to complete the online form.
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