If you’re like a lot of folks, refinancing your auto loan has probably never crossed your mind.
Really, do people even do that? It’s not a mortgage, after all. Wouldn’t it be a major hassle? And how much could you realistically trim off your payments anyway?
But this often-overlooked tactic can genuinely slash your expenses — and it’s surprisingly simple to pursue.
Lantern by SoFi is a loan-comparison platform that lets you easily review refinance offers from a network of reputable lenders.
Curious how much you might save? Just take a look. It won’t cost you a thing to check.
Shrink That Auto Loan Payment
Without much attention, auto loans have grown into a major strain on household budgets. The average loan amount has climbed above $35,000, according to Experian. Americans now face typical monthly payments near $600 for new vehicles and around $400 for used ones.
Auto loan debt is the second-largest form of household debt, coming only after mortgages.
Many people have claimed monthly savings in the hundreds by refinancing their auto loans through Lantern’s partner lenders, though how much you could save depends on several variables — primarily, what you’re currently paying.
Here’s the process:
Prequalify in minutes: A short form requests basic details about you, your car and your existing loan.
No fees to check rates: It’s free to view your potential refinance rates, and checking won’t ding your credit if you decide not to proceed.
See potential savings: Lantern displays offers from its lender network. Find out whether you qualify for a lower rate and reduced monthly payments.
Avoid the DMV runaround: Lantern’s partner lenders handle the paperwork. They’ll pay off your old lender and retitle the vehicle for you, so you don’t have to deal with the hassle.
Some limitations: If your credit score is under about 600, refinancing may be more difficult. It’s also trickier if your car is more than twelve years old.
Still, a large number of people remain positioned to benefit from a more affordable auto loan.
Maybe you want a lower interest rate. Maybe you prefer to stretch your term and reduce monthly payments.
Either way, you probably want to keep more money in your pocket, right?
It takes only a few minutes to answer a few simple questions and discover how much you could save — and while you’re exploring ways to cut auto costs, also consider checking upstart auto refinance and tips to save money on auto expenses.
Jordan Keene (jk@example.com) is a senior financial writer at Savinly. He’s paid plenty of car payments over the years.
* Savinly is a paid affiliate/partner of Lantern by SoFi. This content doesn’t constitute personalized advice and isn’t intended to imply that any product mentioned is right for every reader, as outcomes, needs and financial situations will vary.
** Please visit Lanterncredit.com to view all product disclosures, terms and conditions, state limitations and any applicable fees.
