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IRVINE, Calif. — Despite high awareness of its benefits and
what the site described as an advantageous lending climate, a CarFinance.com snapshot
survey turned up few borrowers are taking advantage of auto refinancing
possibilities

The site dedicated to providing lending to below-prime
consumers also discovered that when it comes to the benefits of refinancing,
the more than 2,000 consumers polled came in evenly divided on what is most
important. The respondents were torn between a loan pay off, a lower monthly
payment and reducing the interest rate.   

"This survey reveals that even with relatively high
awareness of auto refinancing, the average consumer is not taking advantage of
an opportunity that can save hundreds of dollars a month," stated
CarFinance.com chief executive officer Jim Landy.

"Although we have seen a surge of car owners successfully
refinancing their auto loans at CarFinance.com, the results of this survey
indicate that the benefit of auto loan refinancing continues to be one of the
best kept secrets in our post-recession economy," Landy declared.

Other Survey Highlights

When asked what would be more important if they were to
refinance an auto loan, survey respondents were almost evenly divided.

CarFinance.com found that individuals "wanting to pay off
loan sooner because their credit position has improved," constituted 34 percent
of survey findings. Another 33 percent went with "the desire to have extra cash
in hand by lowering monthly payments while the same amount of survey
participants chose "wanting the fairness of having access to the low interest
rates everyone else has."

The survey also revealed that nearly two-thirds of
respondents were aware that auto loan refinancing is possible; 63 percent
said, "Yes," while 37 percent said "No."

But to CarFinance.com's surprise, even though refinancing an
auto loan is much simpler than refinancing a home mortgage — and approval rates
are higher — only 12 percent of survey participants reported they had actually
refinanced their vehicle loan.

How to Refinance a Vehicle

To refinance an auto loan, CarFinance.com explained owners
simply have to fill out an application for an opportunity to get approved at a
lower interest rate.

Landy pointed out refinancing also can be done relatively
quickly, easily, securely and privately online — and can significantly reduce
monthly auto payments.

For example, the CarFinance.com boss said a $30,000 new-vehicle
loan originated in late 2008 with a 72-month term could have a $600 monthly
payment. Today, as many consumers are holding on to their vehicle for longer
periods, they have an opportunity to refinance the balance and reduce monthly
payments, in this instance by $200 per month or more.

"Car buyers from a few years ago may now qualify for rates
that are significantly lower than their current rate and it is a more friendly
lending climate today. For example below-prime approvals were up 24-plus
percent in July," Landy explained.

"Yet many Americans are trapped in car loans they financed
during the recession when interest rates were much higher than they are today,"
he went on to say. "And as the survey indicates, for many that just feels
unfair. After all, why should they pay 19 percent interest, if they can qualify
for 10 percent?"