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When you refinance a loan, the new lender pays off the original lender. Then, you start making payments to the new lender, based on the terms of the new loan. Benefits of Refinancing a Car Loan ...
How to determine if refinancing your car is a good idea. ... Missing payments can result in fees, damaged credit or worse: repossession of the vehicle. If you cannot make payments, refinancing may ...
If you owe $12,000 on the loan, for example, and the lender sells your repossessed car for $8,000, the $4,000 difference — as well as any associated fees and costs — are called the deficiency ...
Refinancing a car loan comes with fees that will ultimately impact your overall savings. Before you refinance, talk to your current lender about any fees you'll have to pay, like a prepayment penalty.
You can still refinance an auto loan with bad credit, but getting a good rate can be difficult. Borrowers with low credit scores generally pay much higher interest rates.
Unlike student loans and mortgages, there are no government-backed relief programs to cover a monthly auto payment. The result is most devastating for subprime borrowers — those with credit ...
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