You may have heard of a Loan Against Car And Still Drive It, but not quite sure what it is or even how it works.
We are here to help answer some of the questions you may have about refinancing your car loan secured on your vehicle, to see if such a thing is an option for you and is a way to help you save money.
Loan Against Car And Still Drive It – What Is It?
A Loan Against Car still drive it is a secured loan that is used to help pay off a current car loan or pay for a new vehicle.
The car itself is used as security for the new refinanced loan.
The new loan continues to have a fixed interest rate as well as fixed monthly payments for the term of the loan.
How does a secured car loan work?
It basically works by replacing the current car loan with a new one if refinancing or securing the loan on the new car you are buying.
This however means you are taking out a new loan with different terms.
With the new auto loan you will pay off the current vehicle loan.
Why would I want to carry out a refinancing a loan against a car?
There are many advantages of doing this. Mostly people do this to save money.
This could be done by lowering their monthly payments or by reducing the interest rates, as well as shortening the term of the credit so that it is paid off quicker.
Make sure before refinancing, that what you are hoping to get from it will be the outcome.
When is the best time to secure a loan on your vehicle?
This really depends on your circumstances.
If you have been working hard on improving your credit rating, then you may be able to refinance for a better interest rate.
If you are in the position of needing more cash each month by refinancing it may help lower the monthly payments.
If interest rates in the economy fall it may be a great time to take advantage of the better deals that are available compared to your original agreement.
Where do I go for help to get a Loan Against Car And Still Drive It?
When you have decided that the best option for you is to refinance your car or secure a new loan on a car, then the best place to look is right here.
We have a range of lenders that will be able to help and advice you on the best credit options to suit your circumstances.
See also auto bank finance.