Ignition Financial in Houston, Texas, has a tremendous program where you can refinance your car loan with the possibility of receiving a lower interest rate and better terms. Just about everyone is familiar with the usual procedure that is common when purchasing a car, as to the financing procedures.
Typically, a consumer will pick out a car, presumably one where the estimated payments fit his budget, and then he signs on the bottom line for a car loan that he barely understands, but he is very happy to be able to drive the car home.
What most people don’t know about, is the actual inner workings of that car loan, and just how much interest is actually involved. The way it works is that lenders like to make as many loans as possible, so they give some pretty nice incentives to the dealers in order to entice them to do business.
The lender will establish a floor rate for the interest on the car loan, and then allow the dealer to mark up past the floor, which then becomes the dealer’s profit. In fact, the dealer will receive a check for the excess interest at the time of the closing on the car. The excess interest can be as much as 2% to 4% to the buyer.
That is why the restructuring of a consumer’s loan using the proprietary automobile refinancing program is so popular. Once a consumer discovers how much can be saved, people will declare, “Go ahead, slash my payments”
The refinancing program simply restructures a new loan for the automobile based upon the consumer’s current credit, and in most cases, the end result is a better loan with terms that are more advantageous.
The refinancing process frees up more money for the consumer and allows him more financial leeway. This is money that can now go into savings, pay some taxes, purchase needed repairs for the house, or perhaps even purchase another car.
Today there are millions of people who hold car loans that are very disadvantageous to them. They may have had poor credit with they purchased a car with a high-interest rate, or they just may have been taken advantageous of. Perhaps their credit has improved, and if so, they have a great opportunity to improve their overall financial situation in a big way.
A consumer can find out very quickly if a car loan refinance will work in his or her situation, and it would be wise for anyone to check it out.