Almost everyone is familiar with the idea of refinancing a home. But, however, most people have never thought about refinancing their auto loans. In fact, many people do not even know that vehicle refinancing is readily available. There are several reasons why people are unfamiliar with the vehicle refinancing process. The first reason is that most people are not familiar with the car buying process in general and all of the intricacies involved in getting a good deal on their vehicle. Another reason is that car dealers have no incentive to make their customers aware of cheaper auto financing opportunities.
When people start to make a deal on a car that they want to buy, they usually are focused on the price of the vehicle as the main bargaining issue. The dealers are willing to cut the price of the car and offer you quick and easy in-house hassle free financing to get into your new car fast. Car dealers are professional negotiators, and they are experts at persuading people to go with their financing program. This is because they make a lot of money off of arranging the financing for your vehicle. Often, dealers make more from arranging the auto financing than they do off of selling the vehicle itself.
Most people don’t know it, but car dealers have an agreement with the banks that allows them to add on extra interest on the loans that they arrange. The dealer gets the loan from a lender at what is known as the “market rate.” The dealer then add some extra interest points onto the loan and makes an agreement with the buyer at a higher “contract rate.” The amount of extra interest added is limited only by the car dealers greed. The dealer will add as much interest as he thinks that he could get away with without killing the sale.
When you consider the price of a new car, you can easily see how these extra interest points are the reason that your monthly car payments are so high. Now that you know how you’ve been ripped off, you may be asking yourself, “How can I slash my payments?” The answer is simple. You can refinance your car with Ignition Financial and save a lot of money. The professional staff at Ignition Financial are experts at providing vehicle refinancing for people with all types of credit histories. Call Ignition Financial now to slash your car payments immediately.