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Federal unemployment benefits ended for many states in the first week of September. This comes as a result of increased vaccinations, the reopening of most businesses, and an improving job market. While this may be good news for some, for others it means that the extra $300 a week that they were relying on to make ends meet is now gone. In this article we look at the unique economic position COVID put us in and give you some tips on how to manage the end of unemployment benefits.Your Guide to The end of unemployment benefits Here are some contextual data points, plus tips and tools to handle the end of unemployment benefits and help you balance your budget.How Spending Changed During the PandemicAccording to an Experian survey, 66% of consumers reported spending the same or less than they did in pre-pandemic 2019. The biggest reductions were reported in the following areas:30% said their biggest budget change was a reduction on eating out and entertainment23% said their biggest budget change was a reduction on nonessential purchases16% said their biggest budget change was a reduction on travel expensesYet despite this, a deeper look at these categories reveals that the reduction in savings wasn’t as drastic as some may think. The sharp uptick in online shopping replaced runs to the store, ordering on GrubHub or DoorDash replaced eating out, and increased entertainment subscriptions like Netflix and Hulu replaced entertainment purchases. A CNBC survey found, notably, that there was an increase in pet ownership and spending. There was a 23% increase in spending on pets during the pandemic, which is not surprising given that so many people were now stuck at home (and hey, what’s better company than a furry friend?)  So while spending may have been reduced slightly, it ultimately shifted to other areas.The most significant cuts to spending that were not easily replaced with other spending habits were travel and gym memberships.How Saving Changed During the PandemicTheoretically speaking, any saved income could be allocated to a savings account. A Credit Karma study revealed that only 28% of those surveyed said they were actually saving during the pandemic. When this was further broken down by employment status, it is unsurprising that those who were able to save were primarily those who maintained steady work throughout the pandemic.32% of people with full time jobs reported saving more than in 201934% of people with part time jobs reported saving more than in 20198% of unemployed people reported saving more than in 2019People who were able to transition easily to working from home were able to maintain their normal income while reducing their spending, even if only slightly. Those savings were reported to vary in intention from building an emergency fund, to making an investment such as a mortgage or a down payment, to paying down debts. But ultimately savings have been cut drastically during the pandemic. Credit Karma surveyed those who reported not saving at all during the pandemic. When asked why, they cited the following:21% said they had become unemployed as a result of the pandemic38% said they had lost hours or wages because of the pandemic32% said it was because of increased expenses during the pandemicBut why did expenses increase for some, while not for others? Research has shown that middle and lower income families saw increased expenses with the pandemic for the following reasons:The inability to shop around for the best prices on groceries and other necessities.Delivery minimums from stores made it difficult to split orders to multiple stores, again hindering the ability to shop around for deals.Increased energy and water bills.Costs associated with homeschooling and working from home (laptops, internet, etc).All of this adds up to a situation where people were making less money and in many cases spending more money. That was when the federal unemployment came in to bail out working families.How Unemployment Assistance HelpedThe people who were struggling the most during this time were the service industry professionals, gig workers, and retail employees that were forced out of work. For these people, the Pandemic Emergency Unemployment Compensation (PEUC) was passed at a federal level to provide assistance. This was put in place as an extension of states’ unemployment compensation, which expired 8-10 months after the original unemployment began. This extra $300 a week became a necessary addition to so many people’s budgets. With the reopening of the economy and increased vaccination rates, many businesses are now hiring and the unemployment benefits are coming to an end. The additional unemployment assistance ended for most people in early September. For many, this will be another difficult transition. Jobs are not filled immediately and there are often gap weeks between unemployment payments and paychecks from their new employer. Let’s look at some tips for preparing for another period of economic uncertainty.How to Manage Without Further Unemployment AssistanceMake a BudgetThis seems simple, but it is the most important thing you can do for your finances. Simply start a spreadsheet and start doing the math:Make a column outlining each and every expense you have. From your electric bill to your HBO subscription to your car loan payment. Record everything.Make a column outlining every source of income you have. Your income, your partner’s income, and any side hustle you have going on.Add ‘em up! Save If You CanIf your income is higher than your expenses, take the remaining amount of money in your budget and divide it further. Can you afford the fancy coffee two times a week? Great! Give yourself an allocation of “just for me money” where you can buy the non essentials. Try to add a saving item to your budget if you have the extra money. You should aim ultimately for 10-15% of your income to go to savings, whether it is a 401K or an emergency fund (everyone should have an emergency fund for when the unexpected happens).Cut Expenses If You Need ToIf your income is lower than your expenses, you have to make some tough choices. What can you trim out that you don’t need? The easiest things to get rid of are subscriptions. Ditch Netflix and Apple TV and save $20 a month (you can beg for a friend’s password, no?). Check your bank accounts for any subscriptions that may be on auto-renew that you may have forgotten about. See if there is a cheaper plan for your cell phone or cable. Try to trim the fat anywhere you can. If you have a car loan, look at your terms and see if car refinancing is a good move for you. Interest rates are low right now to encourage spending, and if your credit is in good standing you might be able to save a good deal of money each month by refinancing to a lower interest rate. Look for a Side HustleWith so many companies transitioning to work from home, there are many part time side gigs that you might be able to get in this economy. There are loads of customer service and data entry positions that are work from home and only require 10-15 hours per week. This extra bit of cash could make all the difference for your budget.Other Savings TipsThere are several small scale changes you can make that can add up to big changes over time. Check community bulletin boards for free local events. This can cut your entertainment budget a great deal.Prepare a thorough grocery list. Plan out your meals for the week and resist impulse buys while shopping. And while you are at it, buy the generic versions of things. You’ll save a lot and you might not even notice the difference.Bundle your cable and internet. You can save close to $50 a month by doing so. Make your own gifts. Pinterest is your friend! Keep an eye on your electric bill. Small changes to your habits can add up to big savings.Unsubscribe from marketing emails. If the temptation to shop online isn’t there, it’s easier to cut back.Cut back on the fancy coffee. It’s hard, we know. But $5 a day, 5 times a week on fancy coffee adds up to $100 a month. If it’s not in your budget, cut it out.Budgets can be hard and they can be boring. But budgeting is the best way to keep an eye on your finances and make sure you are not getting in over our head. Use These Tips To Get Through The loss of unemployment funds The loss of the added unemployment funds will be difficult for many, but we hope that some of the tips outlined here can help you save some money here and there.If you are looking for some extra money every month, it is worth looking into refinancing your auto loan. With the low interest rates being offered today, there is a good chance you can save a significant amount of money. At Auto Approve, we are passionate about saving people money. Let us save you money today!GET A QUOTE IN 60 SECONDS

Refinancing can be useful for many reasons, but the intent is always the same: save some money, either in the short term or in the long term (or both, right?) Whether you’re looking to save some cash in the long run, or just loosen up your day to day budget, car refinancing might be the right move for you. Here Are the top 3 reasons you should consider refinancing todayReason #1: You Can Get a Lower Interest RateThere are a number of reasons why you might be able to secure a lower interest rate. And if this is the case, it is absolutely worth looking into vehicle refinancing. A lower interest rate can reduce how much you will end up paying in total on your car, as well as reduce your monthly payments. And who couldn’t use some extra cash every month? Let’s look at some reasons you might be able to secure a lower interest rate.Your Credit Has ImprovedYour credit score is the biggest factor in determining an interest rate. Credit scores help lenders to gauge how likely you are to repay the loan they are giving you. Let’s look at how credit scores are calculated, and how changes in your finances affect your credit score.35% Credit History (On time, consistent payments)30% Credit Utilization Score (Your total debts divided by the total credit available to you)15% Credit History Length (The age of your accounts)10% Credit Mix (How diverse is your credit portfolio)10% New Credit (New accounts and credit inquiries)A change in any of these areas can result in a change in your credit score. Say it has been two years since you took out your original loan. Since then, you have made every single payment, not only for your auto loan but for your mortgage and credit cards. You made a budget and stuck to it, and it paid off. This can offer a major boost to your credit since credit history accounts for 35% of your score. Maybe in those two years you also paid down your credit card debt significantly and reduced your credit utilization score from 50% to 25%. This shows financial maturity and makes you a very desirable loan candidate. An improvement to your credit score can translate to saving hundreds if not thousands of dollars. So what is a good credit score to refinance? A good credit score is considered to be 670 and above. As long as your score is better now than it was when you originally took out your loan, it is worth looking into.Check your credit score (it’s free to do once a year from each of the three agencies, which means you can check for free three times each year). If you have noticed an increased score, contact Auto Approve and let’s get the ball rolling on refinancing. *Pro Tip: When you get your credit report, check for any inconsistencies. Be thorough when you are reviewing, and report any issues to the credit agency. Catching any mistakes can have huge effects on your credit score!Interest Rates Are DownThe economy dictates how interest rates are calculated. Interest rates are set at the federal level by the Federal Open Market Committee (FOMC). If the economy needs a boost, the Committee will lower interest rates to encourage spending. In these unpredictable COVID times, interest rates have been lowered to encourage people to buy.Your Original Loan Had Unfavorable TermsIt’s happened to a lot of us; we go in to take a look at something and before we know it we are signing on the dotted line. Maybe you just wanted to see how that new SUV looked in person, or you were just hoping to take a quick test drive and get a feel for how that new truck drives. If this is how you got roped into your original car loan, refinancing might be an excellent idea. Dealerships have famously high interest rates and notoriously smooth salesmen. It is easy to get talked into a loan without shopping around and comparing rates. If this has happened to you, there is a good chance you are overpaying on your car loan. Vehicle refinancing can help you pay off your unfavorable loan and start over with a better, more reasonable loan. At Auto Approve we don’t have any smooth-talking salespeople (don’t tell our team we said that though). We are just really passionate about saving you money.Reason #2: You Want to Change Your Monthly PaymentsVehicle refinancing is a great way to change your monthly payments. If things have been especially tight lately, there are two ways that you can get some much needed breathing room.Refinance to a Lower Interest RateIf your credit score has improved, interest rates have gone down industry-wide, or your original loan had a high rate, there is a good chance you can refinance to a lower interest rate. This will ultimately reduce your monthly payments if you keep a similar payment schedule.Lengthen Your Payment PeriodA great way to reduce your monthly payments is to lengthen your payment period. When you refinance, you may have the option to pick 24, 26, or 48 month repayment periods. The longer your payment period is, the more spread out the total cost of the loan will be, which means your monthly payments will ultimately be less. If your interest rate isn’t much lower you may end up paying a bit more in the long run interest rates, so you will need to decide if the extra breathing room is worth the possible long term cost. Shorten Your Payment PeriodIf your financial situation has loosened up since you took out your original loan, shortening your payment period might be a good move to save some money in the long run. The shorter your payment periods are, the less time you will be paying interest on the loan. This can add up to saving big bucks when your loan is over. Your monthly payments are likely to be a bit higher, but if you are in a comfortable position it might be a good move to pay your loan off more quickly. And if you are able to secure a lower interest rate at the same time, that’s even more money in your pocket.*Pro Tip: Doing your research and running the numbers is the most important thing you can do when considering refinancing. Make a spreadsheet and use an amortization sheet to help you determine your various payments based on different payment periods. This will let you see how much you will be saving (and then decide if it’s worth it).Reason #3: You Want to Add or Remove a CosignerIf you want to add or remove a cosigner to your auto loan, you will need to refinance your car.Adding a CosignerIf you are having trouble each month making your loan payments, adding a cosigner might be beneficial to you. If they have a good credit score and payment history, they will likely qualify for a better interest rate. In order to add a cosigner, you must go through the vehicle refinancing process. When you refinance with a cosigner, lenders take the following considerations into account:Your cosigner’s credit scoreYour cosigner’s payment historyYour cosigner’s incomeYour cosigner’s backgroundYour cosigner’s consent to be financially liablePro Tip: It can be difficult to ask someone to cosign on a loan as it is a huge liability. The key to successfully cosigning is to communicate openly and honestly with your cosigner. Check in with them regularly to assure them that you are making consistent, prompt, and full payments. Give them access to any necessary documents and keep them in the loop.Removing a CosignerSimilarly, if you are no longer interested in having someone else’s name on your loan, you will need to refinance to get them removed from the loan. Make absolutely sure that you are comfortable taking on the responsibility by yourself before you remove your cosigner. Consider the following:Has your credit score improved enough to support this and give you a good interest rate?Is your cash flow good enough to support consistent, full, and on-time payments?Does your current loan have prepayment fees? Are these fees high enough to negate any benefits of refinancing?How much time left is in your current loan? If there are less than two years left on the loan, it might not be beneficial to refinance, and it might make more sense to leave the loan as is until it is paid off. On the other hand, if your loan is less than a year old it might be worthwhile to wait a bit. Waiting a year after your original lease to refinance will help your credit score to bounce back after taking out the initial loan.Those are the top reasons To refinance a car today.Have we convinced you that car refinancing might be a fantastic and worthwhile idea? Great! Wondering how to refinance a car loan? Get started with a free quote from Auto Approve today–it only takes a few minutes, so you have nothing to lose!GET A QUOTE IN 60 SECONDS

Here’s the short answer.A good rate on a motorcycle will vary greatly with market fluctuations, and vary personally—your best available rate may not be the lowest available on the market, depending on your credit and financial picture, the kind of financing you’re considering, and your preferred make and model of motorcycle.The following rates are given only as examples of what could be considered a good APR.Motorcycle manufacturers sometimes offer promotional APRs as low as 2.95%—5.95%, which would certainly be a good rate if you can find it and get approved for it. A more commonly available good APR would be in the 3.99%–5.24% for those with great credit, or if you’re looking into a personal loan, rates starting around 6.25%.As of May 2026, Auto Approve’s best available APRs for vehicle refinances are around 4.49%. If interest rates go up or down, vehicle financing and refinancing rates will shift with the market.Always dreamed of owning a motorcycle, but never been able to pull together the cash to make that dream a reality? Recently bought a hog and wondering if the rate you got was reasonable? Whatever you're looking for, we're here to give you all the answers to your questions about financing and getting a good rate on your motorcycle loan! (Also, does calling it a hog make us sound cool? Please don't ruin this for us.)Here's everything you need to know about motorcycle loans and financing ratesWhile buying a motorcycle can be less of an investment than buying a new car, it can still be a significant purchase. New Harley Davidsons start at $10,000, but easily climb into the $20,000 range. So if you really want to get on the open road, but don’t quite have the money, a motorcycle loan might be your answer.The Three Ways to Finance Your MotorcycleIf you don’t have the money in your bank account to buy the motorcycle you’ve been eyeing at the local dealership, there are three different options for financing: manufacturer financing, personal loans, and motorcycle loans.Manufacturer FinancingSome motorcycle companies, such as Harley Davidson and BMW, offer financing. And there are some pros to manufacturer financing:You can get financing on both new and used inventory.You can add necessary gear and accessories to the loan amount, such as helmets and protective gear.It's convenient – you can get your motorcycle and financing set up in one day with little hassle.Dealers sometimes run specials to encourage sales, so if you have good timing you may be able to get a nice rebate or decent APR on your new chopper.While there are some good benefits to manufacturer financing, there are also some negatives. Here are the cons to this type of financing:Dealerships have notoriously high APRs. It is important to shop around beforehand to know if you are getting a good deal or not.There are sometimes limitations on what you can finance. Not all models are eligible for financing, and oftentimes the advertised low APRs only apply to certain motorcycles.Manufacturer loans are secured. This means if you fall behind on payments, they can take your motorcycle as collateral. Personal LoanIt is possible to secure financing through a personal loan. A personal loan is an unsecured loan that you can take out through a bank, credit union, or an online lender. Here are the pros of using a personal loan to finance a motorcycle:These loans are unsecured, meaning that should you default, your motorcycle will not be taken as collateral.There are often no origination or application fees.There is often no prepayment penalty if you pay back early.Securing a personal loan can often be a bit more difficult because it is unsecured. Here are some of the cons:You need to be a member if you're financing through a credit union (credit unions often have the best rates for personal loans).You must have excellent credit to be eligible.Rates can be high, as they are unsecured.You may be required to apply in person.A personal loan may be a good option for some, but it does require a great credit score and strong credit history. Motorcycle LoanThe third option for financing a motorcycle is to get a motorcycle loan. Motorcycle loans are offered through banks, credit unions, and some online lenders. While similar to auto loans, they are not interchangeable and you may find that the lender financing your car does not offer motorcycle loans. Motorcycle loans are your best bet to find a lower rate, but this is dictated largely by your credit score and financial history. Additionally, there are often limitations on these loans (for instance, you may not be allowed to buy a used motorcycle, only a new bike). Since motorcycle loans are usually the best bet for getting a good rate, let’s explore them a bit more.Are Motorcycle Loans Different than Car Loans?With both motorcycle and car loans, you are making payments on a vehicle that will act as collateral in case you default on the loan. They both have a similar application process, and the rate for both types of loans are largely dependent on your credit score and financial history. The main difference between these types of loans are the rates and availability.Why Do Motorcycle Loans Have a Higher APR than Traditional Auto Loans?Motorcycle loans tend to have a higher APR for a number of reasons. First off, they are considered recreational vehicles, while cars are considered to be more of a necessity. Motorcycles require more repairs and the motorcycle depreciation rate is higher than a car depreciation rate. Motorcycle crash rates are also higher. All of these factors add up and make for a higher risk loan, therefore lenders charge a higher APR.What are the Requirements for a Motorcycle Loan?Requirements for a motorcycle loan are similar to requirements for an auto loan. The lender will look at the following information when choosing whether or not to provide financing:Your credit scoreYour credit historyYour debt-to-income ratioYour downpaymentThe condition of the motorcycleThe price and value of the motorcycleCredit ScoreDo you have a good credit score? Your credit score is especially important when it comes to financing a motorcycle. Because it is a riskier loan, there is a higher threshold of financial stability. According to Equifax, the following credit tier characterize credit scores:800 to 850: Excellent credit740 to 799: Very good credit670 to 739: Good credit580 to 669: Fair credit300 to 579: Poor creditTo secure a motorcycle loan, you will need a good credit score (670 or above), but the best rates will be reserved for those with very good to excellent credit (740 or above).Credit HistoryHave you had other loans, such as an auto loan or a mortgage? Do you make on time payments? Do you have a history of repossession or bankruptcy? Lenders will ask all of these questions when reviewing your credit history to determine whether or not you are a high risk candidate for a motorcycle loan.Debt-to-Income RatioDo you have a high debt-to-income ratio? Mortgages, rents, auto loans, and other personal loans are all considered debts. If the ratio of your debts to your income is high, you are a less desirable candidate for a motorcycle loan. If your debt-to-income ratio is low, this means you are more likely to make full, on-time payments and are therefore a more desirable loan candidate.Down PaymentHow much of your own money are you able to put down on your motorcycle? If you are able to put down a higher payment up front, it shows the lender that you are a serious applicant and more financially stable than someone who does not have any money for a down payment. Condition of the MotorcycleIs the motorcycle new or is it used? If it is new, it is more reliable with less risk of it breaking down. That being said, new motorcycles tend to be much more expensive. The lenders will look at all of this information when determining a rate.Price and Value of the MotorcycleHow much are you paying for the motorcycle, and how much is it worth? The price you are paying compared to the value found on Kelley Blue Book will tell the lender whether or not you are getting a good deal on your motorcycle. This will also factor into the rate of your motorcycle loan.What is a Good Rate for a Motorcycle Loan?Rates for motorcycle loans vary greatly based on your personal situation. If you have excellent credit, a strong financial history, and can put down an up front payment, you can find rates as low as 2.95% manufacturer promotional APRs, but a more common APR might be in the range of 3.99% to 6% or 7%, especially if you’re getting financing through a personal loan. It is important to remember that what is a “good” rate for you might be different than what is considered a “good” rate for someone else. The high risk associated with motorcycles compounded with less than perfect credit can drive your APR up pretty fast. And if you're not happy with your rate, we can help. At Auto Approve, we're committed to finding you the best rate possible for your motorcycle loan. We work as your advocate to track down and compare all available rates and terms to ensure that you are getting the most bang for your buck. Can I Refinance a Motorcycle Loan?Yes! If your credit score has improved since your initial loan, interest rates have gone down, or you just got a bad rate on a manufacturer loan, you can refinance to more favorable terms. If you are wondering how to refinance a motorcycle, Auto Approve can help make it happen. What Not to DoIf you cannot get approved for a motorcycle loan, personal loan, or manufacturer financing, you should wait to purchase your new motorcycle. Avoid the temptation to buy the bike with your credit card. If your credit limit is high enough, you might think this is an easy option, but the high interest rates and penalties can have disastrous results if you fall behind. It’s best to work on building your credit and reapplying when your situation has improved.Financing a motorcycle has stricter requirements than financing a car, but at Auto Approve we can help you find the best motorcycle loan rates available. If you're interested in refinancing your motorcycle loan, contact us today to find your best rate!GET A QUOTE IN 60 SECONDS

Leasing a car is a very popular option for many these days. But what happens when you love your car, and you just can’t bear to say goodbye?When your car lease comes to an end, you typically have three options to choose from: lease trade in, lease turn in, and lease buyout. Here, we'll discuss your three options and help you decide if a car lease buyout is the right move for you.What is a car lease buyout and does it make sense for you?In short, a car lease buyout lets you buy your existing car from your lender.When your lease term comes to an end, you have three main options to consider. About three months before your lease end date, your lender should contact you to review your courses of action.Understanding Your OptionsLease Trade InA lease trade in is when you trade your old car in for a new car lease. In this case, you should determine your car’s value and compare it with the lease-end residual value that is listed in your lease contract. If the trade in value is higher (which is rare), you can use the difference to put a down payment on a new vehicle.In most cases, the residual value will be higher and it will make more sense to return the car and start a new lease.Lease Turn InA lease turn in is exactly that; you return your car to the dealer as is. You will have to look at your contract carefully and determine if you are responsible for any fees. An inspection will be performed when you trade in your car and you will be responsible for excessive wear and tear, any dents and dings on the exterior of the car, and any stains or tears on the car’s interior. Excessive mileage fees may also apply, which can add up fast.Lease BuyoutA lease buyout lets you buy your car directly from your lender. If the first two options are less than ideal, a lease buyout might be the right option for you. In most cases, you can buy your car lease at any point during your lease period. If you want to buy out your loan early, you will need to discuss this with your lender as it will affect the residual value of the car. It is often not financially beneficial to buy a lease out early. It is much more common to wait until the end of the lease period to broach the subject of a lease buyout.  How a Buyout WorksA car lease buyout is different than buying a new car. You already have knowledge of your car’s condition so you should have fewer concerns over the investment. The buyout loan amount will also be significantly less than buying a new car. Let’s look at what you should consider when deciding if a lease buyout is right for you.Valuing Your CarFirst and foremost, you should determine the value of your car. There are two main factors that you should consider:Residual Value. Your car’s residual value is listed in your existing loan contract. The residual value of a car is based on your car’s expected depreciation over the life of your loan and is predetermined by the leasing company. This number is usually non-negotiable.Market Value. The demand for your car will greatly affect the market value of your car. If it is a popular make and model, it will have a higher market value. Use websites such as Cars.com, Edmunds.com. Or Kelly Blue Book to determine the market value of your car.When you are buying out your lease, you are bound to the residual value of the car. It is important to know what the market value is of your car to determine if it makes sense to purchase it. If the residual value of your car is $16,000, but the market value is $13,000, it would mean that you are paying $3,000 more than what your car is actually worth. There is no rule on when exactly it is worthwhile to purchase your car, but if the residual value is within a few hundred dollars of the market value, it is probably a fair deal.Additional Buyout ConsiderationsIf you are happy with the residual value of your car, there are a few more factors to take into consideration.Excessive mileage. Have you exceeded the mileage amount allotted in your lease agreement? If so, you will be subject to per-mile penalty fees that can vary from $.10 to $.30 per mile. If you were consistently driving several thousand miles per year over your limit, that can add up to several thousand dollars. If you choose to buy your vehicle, you will not have to pay these fees, so this money can instead be put towards your buyout. Your car’s condition. Your car is subject to inspection when your lease period is up. You will be charged a fee if there is excessive damage, such as exterior dents and dings, interior tears and stains, or mechanical issues that the dealership considers beyond normal wear and tear. Disposition Fee. The disposition fee covers all costs associated with reselling your car, and can be a few hundred dollars. This pays for the dealership to clean and detail the car, and make any necessary repairs before reselling.Cost of maintenance. If you want to keep your car, it is important to do additional research to determine what your cost of maintenance will be in the next several years. If there are several expensive maintenance costs that will pop up, you will need to compare this cost with the savings from the other fees.How to Buyout Your LeaseYou’ve run the numbers and you think that buying out your lease makes the most sense and is your best option. What next?Call your existing leasing company. Get a comprehensive list of all costs associated with the buyout. Make sure this number includes sales tax, which can be a significant amount.Shop around for rates. Go online and look around at different rates. Not all lenders offer buyout loans, so you will have less options than when you originally financed your loan. It is also important to note that lease buyout loans are used car loans, which tend to have higher interest rates than new car loans. At Auto Approve, we work with lenders that do offer lease buyout loans, and can help you get the best rate available.Your rates will be based on prevailing interest rates in the industry as well as on your personal finances, just as your initial loan. Make sure you have all necessary documents for your loan application: Photo IDYour Vehicle’s InformationProof of Income and Financial HistoryProof of ResidenceProof of InsuranceHaving all necessary documents ready to go will help to streamline this process. Be sure to apply to all lenders within a fourteen day period. The credit bureaus allow all credit inquiries in a fourteen day period to count as one credit hit, so it will not adversely affect your credit score more than necessary.When the lenders respond with their offers, compare the rates and terms. At AutoApprove, we can help you shop around to compare rates and terms to find the best option for your buyout loan. Call Your Insurance CompanyYou will need to notify your insurance company of your new lender. This is also a good chance for you to review your insurance needs. On a leased vehicle, you are typically required to have high levels of liability coverage. You may decide that you do not need such a high level of coverage based on where you live or how much you drive, and you can opt for lower payments by reducing this coverage. Make Sure All of Your Paperwork Is In OrderTalk to your lender and be sure to visit your state’s motor vehicle department to transfer the title and make sure all of your paperwork is in order. Your lender should be able to guide you specifically through what steps you need to take. And when you work with Auto Approve, we handle the DMV paperwork for you!Ready to buy out your lease? Auto Approve can helpIf you have considered all of your end of lease options and determined a lease buyout is the right option for you, we're here to help you with the next steps so you can keep your car, hassle-free.At Auto Approve, we never mark up rates on car buyout loans or vehicle refinancing, so you know you're always getting your best possible rate. We pass all of the savings right on to you. We know car financing can be complicated and stressful, but we're here to streamline the process and save you as much money as possible.Check out our auto lease purchase options and get started today!GET A QUOTE IN 60 SECONDS

So, you have a car, you love it, but the interest rate... isn't so hot. You're probably wondering whether refinancing could help and, if so, when you can refinance.First, let's talk about vehicle refinancing.When you refinance a car, you are paying off your existing loan with a new loan that ideally has better terms. Just as you are able to obtain a vehicle loan whenever you would like, you are also able to refinance a vehicle loan whenever you would like. But there are many factors to consider when trying to determine the best time to refinance a car and whether or not it makes sense for you right now.Let's take a look.When can you refinance a car, and when is the best time to refinance?There are many factors to consider when it comes to refinancing. Here are some things to think about when determining if refinancing is a good idea for you right now.Your Existing LoanFirst and foremost, it's important to look at the terms of your existing auto loan.Sometimes, lenders will have prepayment penalties attached to the loan, so it is important to know what the penalties will be if you choose to refinance. If there are prepayment penalties, be sure to do the math to determine if the savings of refinancing will outweigh the downside.When determining the best time to refinance a car, it depends heavily on how long you have had your original loan and how many payments are remaining. Let's take a closer look at that.It’s the beginning of your auto loanWhile you can technically refinance immediately after you get your initial loan, it is generally better to wait a bit before refinancing your car.60-90 Days: This is the amount of time it typically takes for the title on your car to transfer. You need to wait until all the paperwork is finalized to refinance, so it's actually unlikely you'd even be able to refinance in this first period of time.Up to six months: It takes some time for your credit score to bounce back after the hard inquiry from your first loan. If you have fantastic credit, this might not be an issue. But, typically, waiting at least six months will yield more beneficial refinancing options. If you are a first time car loan borrower, it is recommended that you wait a year before refinancing your car. This will prove an on-time payment history and make you a more desirable candidate and qualify you for better loan terms and rates.It’s towards the end of your auto loanTo talk about why this matters, we need to get into the nitty-gritty of loans for a moment.First, how does interest on a loan work? Through amortization, the amount of interest you pay gradually decreases over the life of the loan. This means in the beginning of the loan, you are paying off more interest than towards the end of the loan. Let’s look at how car loans are constructed and how car payment amortization works.Car loans accrue simple interest. This means that if you take out a car loan for $20,000 at 5% interest with a 48 month payment, you will pay back $2,108.12 in interest, with monthly payments of $460.59 for the next four years. However, car loans are amortized and “front-loaded”, meaning that, in the beginning, your payments aren’t split evenly between your interest and your principal. The amortization schedule below shows how your monthly payments are split up for the first six months of your loan.Let's look, for example, at a $20,000 loan at 5% interest over 48 months.Month: 1Principal Amount: $20,000.00Monthly Interest Payment: $83.33Monthly Principal Payment: $377.25Ending Balance: $19,622.75Month: 2Principal Amount: $19,622.75Monthly Interest Payment: $81.76Monthly Principal Payment: $378.82Ending Balance: $19,243.92Month: 3Principal Amount: $19,243.92Monthly Interest Payment: $80.18Monthly Principal Payment: $380.40Ending Balance: $18,863.52Month: 4Principal Amount: $18,863.52Monthly Interest Payment: $78.60Monthly Principal Payment: $381.99Ending Balance: $18,481.53Month: 5Principal Amount: $18,481.53Monthly Interest Payment: $77.01Monthly Principal Payment: $383.58Ending Balance: $18,097.95Month: 6Principal Amount: $18,097.95Monthly Interest Payment: $75.41Monthly Principal Payment: $385.18Ending Balance: $17,712.78As you can see, in the earlier months you are paying more in interest than you are later on. Based on this amortization, you can see the total yearly amount paid in interest.Interest Paid:Year 1 - $894.80Year 2 - $657.79Year 3 - $408.68Year 4 - $146.83The majority of your interest is paid in the first two to three years that you have your loan. That means that the longer you wait to refinance, the less beneficial it will be to do so. This is because one of the major benefits of refinancing is less paid in interest over time, but if your interest is mostly paid off, you won't get to see that benefit.Current Interest RatesWhen deciding whether now is a good time to refinance a car loan, look at the current interest rates being offered. Are they better than your original interest rate? Depending on the size of your loan, even a .5 % difference can make a huge difference in the total amount you will be paying.Your Current Credit ScoreCheck your credit score using one (or all of the) of the three major bureaus: Equifax, Experian, and TransUnion. Is your credit score better than it was when you initially applied for a car loan? If so, now might be a good time to refinance.On word to the wise: Refinancing will result in another hard inquiry on your credit report, which will negatively affect your score for about a year. It may also lower the average age of your accounts, which can negatively affect your credit score. So, if you need a high credit score for another reason, like applying for a new mortgage or taking out a new lease on an apartment, consider this in your decision to refinance your car. However, there's no hard inquiry involved in getting a quote, so if you're not sure whether the savings will be enough to make a difference, you can always get a quick and easy quote to help make your decision.Your Current Financial SituationIf you need a little more breathing room every month in your budget, now might be a good time to refinance. By reducing your interest rate or lengthening the payment period, you can reduce your monthly payments. And, for those who need a break from their car loan, refinancing can also give you a few months off from payments.On the flip side, if you would like to pay off your loan earlier, refinancing to a lower rate and shortening your payment period will save you money in the long run. Depending on your current loan, you may even be able to pay less monthly and less in interest over time!When It Doesn’t Make Sense to RefinanceThere are times when refinancing will not be beneficial to you. If any of the following apply to you, it might not be the best time to refinance your car:Your credit score has decreased. You will most likely not find a lender to give you a better rate, unless your current loan is at a really bad rate.Your vehicle has a lot of miles on it. Most lenders have a minimum loan amount and if the car has depreciated in value significantly, it may not be worth your while.Your loan is “upside-down”. If you owe more on your vehicle than it’s worth, you may struggle find a lender that will be willing to refinance at a good rate.All that said, if you're on the fence, it can't hurt to try — getting a quote doesn't require a credit check and can give you an idea of whether or not you should refinance in just a few clicks.And that's everything you need to know about when you can refinanceWhile there are few limitations on when you can refinance, you can use this tips to time your refinance correctly to get the best possible deal. In order to find the best time to refinance your car, take a look at your current loan’s terms and payment period as well as your personal finances.Depending where you are in your repayment schedule, refinancing could save you a bundle. At Auto Approve, we help you find the best refinancing options for your situation. If you’re interested in refinancing, use our quote tool and we can help you find you your best possible savings to put more money back in your pocket.GET A QUOTE IN 60 SECONDS

Are refinance rates different from the rates on new car loans other people are getting? It's a worthy question.Everywhere you turn, it seems like people are talking about interest rates. Terms like “historically low” and “all time low” are being tossed around like confetti, and you definitely don’t want to miss out on whatever party is happening (especially if that party is about saving you some cash, right?). But wait – you already have an auto loan, so how can you benefit from all of this? The answer, of course, is refinancing.Let’s take a look at the benefits of vehicle refinancing.When you refinance a car, you start over with a new loan, and your interest rate can change drastically.Is the process of refinancing the same as the process of applying for a new auto loan?Refinancing is simply paying off your existing loan with a new loan. You are essentially just replacing one financing option with another. The new loan will ideally have a better rate or some other favorable features that make it more desirable than the original loan. You will still have to apply for the new loan, you will still be bound to a loan payment schedule, and you will still offer your vehicle as collateral.The Application Process is the SameWhen refinancing your car, you will need to do research and apply to different lenders, just as before. You will have to provide the same documentation as you did the first time. These documents usually include the following:Photo ID. This can be a passport, driver’s license, or other government issued photo identification.Your vehicle’s information. This often includes the bill of sale, VIN number, the make, model, and year of your car.Proof of income and financial history. Lenders want to see that you are actively earning income. The lender will specify what documents they wish to see, but this often includes pay stubs, banking information, credit history, and other financial account information. This will verify that you are a strong candidate for a new loan and that you will be reliable with your repayment.Proof of residence. Lenders need to verify where you actually live. This can be a mortgage statement, lease agreement, or utility bill. PO boxes are not acceptable as proof of residence.Proof of insurance. Lenders will want to know that there is state-required insurance on the vehicle.Think of these papers as your resume or online dating profile. You want to look as desirable as possible to the lenders you are pursuing. The more desirable you are, the more worthwhile refinancing will be.Just like with your original application, you want to compare the different offers and see who offers the best terms overall. At Auto Approve, we'll help you compare all of your offers to ensure that you are getting the best deal possible.The Loan Terms May DifferAfter refinancing, you will still have an auto loan that you will need to make regular, scheduled payments on. Your payment schedule may change, however. Your schedule may be shorter, so that you can pay off your car faster. Your schedule may lengthen, making your monthly payments lower. Or, your payment schedule may stay the same. And your vehicle will ultimately serve as collateral for your loan, as it did with your original loan.The main benefit of vehicle refinancing? The interest rate.If you are simply changing from one loan to another, why bother refinancing a car? Why bother with that whole lengthy application process, the approval, and the possibility of rejection? The biggest, most important reason of course – money. You can save a boatload of money by changing your interest rate. The lower your interest rate, the less you pay in interest (duh) and the more money in your pocket at the end of each month.There are many reasons your interest rate can change when you choose to refinance your vehicle. These reasons have to do with your personal credit, income, and job status, as well as the economy in general.Increasing your credit score can result in a lower interest rateYour credit score is the single biggest factor in your refinance rate. If your credit score has increased since your original loan, you may be eligible for a lower rate. The following factors can help contribute to a higher credit score:History of on time paymentsLow balances on credit cardsOlder credit accounts that are in good standingHaving a good mix of credit card and loan accountsA small amount of new credit inquiresIf you have a history of late payments or carry high credit balances, these can negatively affect your credit score. If you have made a lot of new credit inquiries recently, this can also lower your credit score, so you will be better off waiting a year or so to apply for car refinancing.It is generally recommended that you pull your credit report ahead of time and review it for any inconsistencies. It is free to pull your credit report from the three major agencies once per year without it negatively affecting your credit score. These agencies are Equifax, Experian, and TransUnion. If you come across anything that is incorrect, you can dispute it with the credit bureau and petition to have it removed from your report. An increase to your income or change in job can result in a lower interest rateIf your income has increased since your original loan, lenders may view you as being more financially stable and therefore offer you a lower interest rate. But the number on your paycheck isn’t the only factor that matters. Having a stable, salaried position may secure you a better rate than being self-employed or working as a freelance employee. These will all help you become more attractive for a vehicle refinance. A decrease in your debts can result in a lower interest rateIf you have less debt than you did when you originally got your loan, lenders may view you as being more financially stable. Decreasing the amount of money you owe in general can lead to lower interest rates.The current economy is offering lower interest ratesRefinance rates depend in part on how healthy the economy is in general. Big banks adjust their target interest rates to respond to the economic climate. If the economy is strong, they tend to increase interest rates. If the economy is a bit sluggish, they lower interest rates to encourage spending. After the tumultuous 2020-2021 economic season, interest rates are currently at historic lows. However, many economists think that as the months go on, the interest rates may start to steadily increase. So, if you are wondering, “When is a good time to refinance a car loan?”, the answer might be right now.And that's everything you need to know about refinance vs. new car ratesAs you can see, there are many complicated factors that make up the interest rates for refinancing. It can feel overwhelming when there are so many different lenders to consider, all of which have different rates and terms to offer. That’s why, at Auto Approve, we work as your advocates, approaching different lenders to help you find the best rate and best terms available. When you refinance with Auto Approve, you can put more money back in your pocket for the things that matter, and we make the process quick and hassle-free – and never mark up your rate.GET A QUOTE IN 60 SECONDS

It started with toilet paper and aluminum cans, then bicycles and lumber. The world has gone through wild cycles of demand and supply over the last year, but not many people could have predicted this economic brain-teaser: car prices are through the (metaphorical) roof, with no indication of slowing down. For decades, conventional wisdom has held up for individuals who are purchasing a car. If you get a brand new car, you’re told that its value depreciates as soon as you leave the parking lot. A used car’s value only went down with time and kilometers. Conversely, if you were in the market for a used car, you could count on paying a fair price given the age and usage of the vehicle. In 2021, however, used car prices saw their biggest price increase in 68 years, according to Business Insider.When the May consumer price report was published earlier this year, there was one glaring anomaly that, given the circumstances, was very alarming. The US was finally showing signs of coming out of the pandemic-induced recession, and business trends were looking up. However, the data showed inflation rising at the fastest pace since the 1990s. Some people (and economists) are using this data as signs that a long inflationary period is on the horizon. Could the government policies and market trends during the pandemic actually lead to a multi-year, super-inflationary period?Turns out that the trend was driven in large part by the uptick in just a few categories. According to Vox.com, about half of the increase in prices could be attributed to just four categories: used cars, rental cars, hotels, and plane tickets. Notice a pattern?Demand for cars and travel: Fast and furiousIn a normal year, used car prices typically rise about 1% annually. In 2021 so far, used car prices are up nearly 30 percent. Two factors are behind this unprecedented rise: supply chain disruptions in the new car market due to a global shortage of semiconductor computer chips, and the available inventory of cars.The semiconductor chip shortage: This has been a weird year for semiconductor microchip manufacturers (and everybody else). Car manufacturers cancelled orders for new chips early on in the pandemic because of low forecasted demand, but the opposite scenario turned out to be true. Earlier in the year, there was a major shortage of microchips, especially for North American car companies like Ford and General Motors. Fewer new cars were manufactured or brought over to the US. Available car inventory is low: With almost no US company able to manufacture new cars, used vehicles became harder and harder to come by. This led to a continent-wide inventory shortage. There just aren’t enough cars as there are potential car buyers. Dialing it in: how do these macro-trends impact you and your financial goals?At first glance, it may seem like buying a car is not a financially feasible decision anymore, at least in the near future.However, the rise in car prices have led to an unanticipated bonus for potential car buyers: auto loan refinancing approvals have increased 66% since May 2020, for the most part due to the rise in vehicle values and their positive impact on loan-to-value ratios (more on LTV later).It’s a win-win. Sellers get the immediate payoff from the current prices, especially if they’ve been wanting to sell or trade-in their wheels for a while. Buyers are getting approved for auto refinance requests more than ever before. As vehicle values go up, the Loan-to-Value ratio adjusts downward automatically. Since a lower LTV makes it easier (and cheaper!) for borrowers to refinance, this is a great opportunity for buyers in the market.Loan-to-Value (LTV): what it means and why it mattersLTV, or Loan-to-Value, is an important ratio to know when you’re financing a large purchase like a car or a house. It is a measure of risk, showing lenders (and buyers) to what degree a loan is backed up by a tangible, real asset. LTV is calculated by dividing the loan amount by the fair value of the asset. Say the car that you’re purchasing is $20,000 and you get a loan for $15,000, your LTV ratio is 75%. That means that 25% of the appraised value of the asset is not covered by the loan. The Loan-to-Value ratio is an important consideration when lenders are figuring out who they can loan out to (and at what rate). LTV ratios trending lower are great news for borrowers who may not have been able to get approved for auto loan refinancing in the past. Similarly, borrowers who already qualified for a refinance will get better loan terms if they apply now. Advantages of refinancing your auto-loanAccording to Experian, the average loan amount for a new vehicle is $33,739, and a used one usually runs up to about $20,723. Since a car is a major purchase for most people, going for refinancing while approval rates are so high can help you lower your interest rate, reduce your monthly payment, and improve your cash flow. Essentially, refinancing a car loan involves borrowing money from a new lender to pay off the current car loan lender in order to get more favorable rate terms on your new loan. Here are more details on how you can benefit from refinancing your car loan:1. You’ll end up paying less interestMost borrowers will end up paying less interest over the term of their loan if they refinance. Here is a calculator you can use to find out how much money you’d be saving through a refinance. The final amount depends on the remaining life of your loan and your new rate, but usually taking a few hours to refinance your auto loan can add up to hundreds (if not thousands) of dollars over years. 2. You can improve your cash flowIf you purchased your car a few years ago, you would not have had access to today’s historically low rates. Or maybe you financed your car through the car dealership, which generally doesn’t have the lowest rates in the market. Finally, if your credit score or income was lower than what it is right now, you can almost guarantee a lower rate through a refinance. While there are fees associated with refinancing an auto loan, borrowers almost always save more than they spend. Generally, if you refinance early on in the life of the loan, you’ll save more money. Personal finance website Credit Karma found that the average savings for members who refinance loans through its service is $3,000, or about $55 per month.3. Your LTV value will most likely improveRefinancing your auto loan may lead to a lower LTV ratio. Your car gets a brand new appraisal during a time when car valuations are much higher than previous years, so the ‘value’ part of the Loan-to-Value ratio goes up. A lower LTV in turn can allow you to make smaller monthly payments, if that is what fits into your budget right now. It also means you have more equity in your asset (your car), and you can use that higher valuation to support other financial moves (like using it as collateral for a business loan, etc).Why now is the perfect time to refinanceThe pandemic caused an unprecedented reduction in the supply of both used and new cars. And pretty much immediately, prices went up. This market bubble, combined with the historically low rates that the government has introduced, presents an opportunity for car buyers to refinance their car purchase. With a 66% increase in auto refinance approvals since last year, borrowers should take advantage of market trends while they can. There is a strong case for consumers to secure a refinance during a period of historically low interest rates and high car values. If you’ve been thinking about refinancing your auto loan, now is the time to apply. Unlike refinancing a mortgage, refinancing a car loan is extremely easy. It can almost entirely be done online and within a couple hours in most cases. Prospective buyers who did not get approved for auto loan refinancing even a few months ago might be hesitant to try again, but remember that the lower LTV ratios right now mean that your application is more likely to get approved without you having to take any additional steps. Consumers with strong applications (great credit, stable income, low debt, for example) may get even better loan terms. Rates are as low as 2.25% right now, making the cost of borrowing almost negligible. Simply put, borrowers benefit when rates are low. If you’ve been looking for a way to cut down on your monthly expenses, this is one expense that can make a huge difference.Although car values are expected to remain high for another few months, the truth is that a trend like this quickly gets corrected through policies and market forces. Consumers and borrowers who have been on the fence should take advantage of this market sooner rather than later and refinance their auto loans while conditions are still so favorable. GET A QUOTE IN 60 SECONDS

We can’t always control the circumstances in our lives, which is why at times, our financial situations may change without warning. Whether you want to simply lower your car payment, you want a lower interest rate, or you want to remove a co-borrower from your loan, auto refinance is a viable and responsible option that is available at your disposal today.When you elect to refinance your car, Auto Approve makes the process easy by paying off your old loan and setting up your new, more favorable loan. This can be an option for you no matter what your credit score is. Most people don’t realize that they may qualify for a lower monthly payment or interest rate, or how simple it is to remove the co-signer from your original loan for whatever reason. The beauty of auto refinancing is that you get a fresh, new start with better terms and rates than your original loan. The fact is, most people are eligible for much better terms than they currently have. It’s always smart to sit back and reflect on how you can achieve the best possible loan terms and rules for your present financial situation. The process just takes a few minutes - you submit your information, and Auto Approve taps into their network of the nation’s top lenders to get you the best terms possible.But, before you dive into auto refinance full-speed-ahead, let’s first look at a general overview of how to refinance your car, and if it makes sense for you.How to Refinance Your CarGeneral Overview: Does Refinancing Make Sense for You?Although auto refinance makes sense for the majority of situations, it’s still something you want to review before you commit yourself fully. If your current loan has a prepayment penalty, you will want to explore what that penalty looks like and if you can have it waived. Most of the time, there is no prepayment penalty, but it’s always wise to do your due diligence and check.If there are additional fees associated with canceling the loan, like needing to re-register the vehicle and transfer the title after refinancing, plan for this ahead of time. Fees can change per state, so it’s worth checking on what the specific details are for your state.You also want to consider the age of your car. Some lenders will be stricter about refinancing cars that are over 10-years-of-age or with more than 100,000-miles on the car. Overall, though, if you need to change the terms of the loan immediately or your credit score has improved, then the cost savings that come with these changes can override the fees mentioned above. That’s why auto refinance is something that is recommended for the majority of people today. We just want to encourage you to, as always, do your homework.Gather the Necessary Documentation:Now that you have determined that you want to pursue auto refinance, it’s time to collect the necessary documents to make it happen. Here is some of the information to anticipate presenting: employment information and history, residential information and history, social security number, date of birth, proof of mortgage statements, and address.Some lenders will want to know that you can repay the loan you are signing to. A paycheck stub, or a tax return can satisfy this request. They may also request proof of insurance as part of the process. Next, you will need to know the balance on your current auto loan, as well as that lender’s information if you are switching to a new lender. It’s worth noting your interest rate and length of the prior loan so that you can use that as leverage when shopping for a new loan.You will need the vehicle identification number (VIN), which can be found on your insurance card or located on the registration and title statements. Speed Up the Process with Prequalification:It’s time to expedite the process with prequalification. Applying for prequalification can be a great place to start so that you know your leverage. To get prequalified, the lender will gather a few pieces of your personal information as stated above. Once the information has been gathered, Auto Approve will prequalify your file and give an estimate or pre-approval that will provide you with an idea of what rates and terms you qualify for at that time.Apply for the Auto Refinance Loan:Ok, the moment is here. You are ready to apply! You will need to complete a loan application. Auto Approve then decides the best fit lender based on the prequalification and the credit profile of the applicant. Our team will submit the application to the lending institution. We will contact you for approval prior to submitting the application so you are in the loop from start to finish. Should the loan be approved, you will sign the paperwork presented by the lender, detailing the terms of your new loan. Always keep a record on file for future reference. The minimum amount you owe each month will be included via the digital copy of the deal. Be sure to never go below the minimum amount. If possible, pay more than the minimum amount to shorten the life of the loan.Transferring Your Old Loan:The transition from your old-to-new loan will be handled by Auto Approve. Be sure to still reach out to the previous lender to ensure that the transition has been done timely and professionally. When to Refinance a Car LoanWe know that was a lot of information, which is why Auto Approve is here to assist you throughout the entire experience. We make refinancing simple and easy, saving you time, frustration, and potential credit dings along the way. Start with a quote through our platform, and allow us to work with banks and credit unions to find your best rate. That’s it. Auto refinance, made with you in mind.GET A QUOTE IN 60 SECONDS

It’s hard to overstate the importance of a good credit score. After all, they are the main factor that lenders use when determining whether or not you are a good candidate for a loan. But your credit score is important for reasons beyond borrowing. A good credit score can help you score a better apartment, get you better rates on car insurance, and more. But how much do you really know about your credit score, and what questions should you be asking?Here’s everything you need to know about your credit score.What is credit? And what is a credit score?Credit refers to any agreement where a borrower receives money from another person or institution with the understanding that they will repay the money, usually with interest. When people talk about credit, they are referencing their credit history, which is a record of their credit usage. A credit score is a number that indicates to lenders their capacity to repay a loan. A credit score is between 300–850 and indicates a consumer's creditworthiness. The higher the score, the more likely a person is deemed to pay back their loan. How are credit scores calculated?Credit scores take into account five different factors in your credit history. Each factor is weighted differently. The factors are:Payment history (35%). Do you pay your accounts in full and on time?Amounts owed (30%). How much money do you owe?Length of credit history (15%). How long have you had accounts?Credit mix (10%). Do you have a healthy mix of accounts?New credit (10%). Are there new accounts that you haven’t proven your ability to pay?Every month different agencies will voluntarily send information to credit bureaus. These agencies typically include banks, credit unions, retail credit card companies, mortgage companies, car loan lenders, and debt collectors. These companies will share:Any new applications for an accountThe date a new account is opened and the loan amount/ credit limitThe account balanceThe status of payments madeWhether or not the account is sent to collectionsAdditionally, credit bureaus also purchase public records from public records providers. These include liens, court judgements, and bankruptcy filings.How do I know if I have good credit?The best way to know if you have good credit is to simply check your credit score. There are many sites that will allow you to check your credit score for free, so it’s a good idea to monitor it regularly. Additionally, you should check your credit report at least once a year (but we recommend reviewing it three times).Credit bureaus will allow you to access your credit report once per year for free and without it affecting your credit score. If you do this once every four months at each of the three bureaus, you will be able to effectively monitor your credit.Your credit score will follow into one of five categories, which will indicate the health of your credit score.Exceptional (Super prime): 781 to 850Very Good (Prime): 661 to 780Good (Non prime): 601 to 660Fair (Subprime): 501 to 600Poor (Deep subprime): 300 to 500What should I look for in my credit report?When you are able to review your credit report there are several things you should look for. Your report is broken down into four sections that you should review.Your personal information section. You should review to make sure that your name, address, social security number, employment history, and marital status are all up to date.Your public records section. You should review this to make sure that there are accurate records of any lawsuits, bankruptcies, liens (including tax liens), and judgements. Your credit accounts section. This will be the longest part of your report, but it's where the meat of your credit score lies. Review it to make sure your payment history is correct, that account ownership is correctly listed, that debts that are paid off are listed as so, that closed accounts are accurately noted, and that there is no negative payment information that is older than seven years.Your inquiries section. Review this to ensure that you authorized any hard inquiries on your account. It is illegal for someone to request a hard inquiry without your consent.If you notice any errors to the credit agency as soon as possible. They will look into the matter within 30 days. If they do not comply they will be in contempt of the Fair Credit Reporting Act.What are the benefits of good credit?There are many benefits of having good credit, and in general it will make your financial life much easier. These benefits include:You will be offered lower interest rates on credit cards and loansLenders will be more likely to approve youYou will get utility services more easilyLandlords will approve you for rentals more easily You will be approved for higher credit limitsYou will look better to potential employersYou will get better insurance ratesYou will have better negotiating power for loans and accountsWhat credit score do I need to refinance my car?There is no magic number credit score when it comes to refinancing your car. But car loan refinance is much more beneficial when your credit score is in good shape.The car loan APR you are offered will be based on a few factors:Your credit scoreYour income and debt-to-income ratioYour vehicleYour current loan informationCurrent market ratesYour credit score is the factor that you will have the most control over. The better your credit score is the lower the car loan APR you will be offered. The best rates are reserved for those with the best credit, so taking the time to improve your credit score is well worth it.Does refinancing affect credit score?People commonly wonder if refinancing hurts credit score. And while it will affect your credit score slightly, the benefits of refinancing a car will far outweigh any slight dips that it may cause in your score. Refinancing a car loan affects two parts of your credit score, your history length and your new credit. Opening a new account, it will shorten your credit history length. It will also count as a new credit and the hard inquiries will be noted in your credit report. But both of these will only cause slight dips in your score, and hard inquiries only affect your credit score for about a year.But the benefits of refinancing a car loan can really help your credit score. If you are having trouble making your monthly payments, refinancing to a longer repayment period can lower your monthly payments and make your monthly budget more manageable. This means that you will be able to more consistently make payments (on all of your accounts, not just your car loan). And that can really bump your payment history section, which is the most influential section of your credit report.Refinancing to a lower car loan APR can also loosen up more money in your wallet so that you can pay down other debts, which will also improve your credit score.How can I raise my credit score?If you are interested in refinancing a car loan it is a good idea to work on your credit score before applying. This will give you the best chance to be offered good terms and a good car loan APR. There are a few steps you can take to ensure your credit score is in its best shape before you apply.Make on time payments to all of your accounts (consider autopay if applicable).Check your credit report for errors.Pay down debts with high credit utilization ratios first.Continue using your credit responsibly.Don’t close any credit accounts.Request higher limits on your accounts.Catch up on any past due bills.Have someone cosign a loan with you (you can benefit from their good score).There is no quick way to improve your credit score. It will take time and commitment, but it will be worth it for you in the long run.That’s everything you need to know about credit scores: what they are, why they are important, and how you can improve yours.Building a great credit score takes time, but it’s incredibly important to your long term financial success. Better interest rates, easier approvals, and more peace of mind are waiting for you on the other side.Refinancing a car loan is a great step to helping your credit score. While you want your score to be in great shape before applying for refinance, keep in mind that it can help you improve your score too by loosening up some money every month.If you are thinking about refinancing your car loan, contact Auto Approve today! Our experts can help guide you through the refinancing process and help you start saving money immediately.So don’t wait, contact Auto Approve today to get started!GET A QUOTE IN 60 SECONDS

Insurance, warranties, vehicle protection plans, GAP insurance. Let’s be honest, it can be downright confusing to keep all of these products straight. While they are all meant to protect your property, they all work in different ways and protect you in different ways.Let’s talk about GAP insurance, how it works and how you can decide if it’s worth it.What is the purpose of GAP insurance?Before we get into what GAP insurance is, let’s talk about all of the different vehicle protections you have and discuss what protects what.WarrantyA warranty is provided by the car manufacturer and covers any problems that may occur to the car that are not your fault. There are two types of warranties, limited bumper to bumper warranties and limited powertrain warranties. Limited bumper-to-bumper warranties cover most things that can go wrong on your car, generally only excluding things like wear and tear and theft. Limited powertrain warranties cover the parts of your car that make the car drive, such as the drivetrain and the transmission. These typically last three to five years depending on the dealer.Vehicle Protection PlanA vehicle protection plan is an optional feature that can cover if something goes wrong on your car that is not your fault after your initial warranty expires. It is essentially an extended warranty. Coverage varies from policy to policy. Vehicle protection plans and warranties are designed to cover problems with your car that are not related to an accident.Car InsuranceCar insurance on the other hand is designed specifically for accidents and external factors that affect your car. Car insurance protects you in two ways: it covers any damage that occurs to your car as a result of an accident and protects you financially if you are liable for someone else’s injuries or damages. Car insurance is required in all states except New Hampshire (but you are still financially responsible for any damages that are your fault, so you should really have it anyway).There are different levels of insurance which all cover different things:Liability insurance is composed of three parts: bodily injury coverage per person, bodily injury coverage per accident, and property damage coverage per accident. This covers any damage you may cause to another driver, their passengers, or their property, including their car. Liability insurance is the minimum insurance requirement in most states. Comprehensive insurance, which covers the cost of damages to your vehicle if there is a non-crash accident, such as weather damage or theft. This also covers damage that occurs if you hit an animal. Collision insurance covers damages to your vehicle if you hit or are hit by another vehicle.GAP InsuranceGAP insurance, or Guaranteed Asset Protection, is optional insurance that kicks in when there is a gap between what insurance will pay and what you still owe on the car.Let’s say you owe $15,000 on your car when you get into an accident. Your car insurance decides that they will only pay out $12,000 in damages. This means that you are still responsible for $3,000 to the lender. GAP insurance would ensure that you do not have to pay this amount.How quickly do cars depreciate?GAP insurance protects you from depreciation. But just how fast do new cars depreciate? Well, pretty quickly actually. When looking at the rate of depreciation, we can divide it into three categories: after it leaves the lot, after one year, and after five years.After it leaves the lot…Your car loses value the second you drive your car off of the dealership’s lot. The car officially has an owner and is no longer a new car. It is estimated that a new car loses about 10% the moment it leaves the lot. Your car can go from $30,000 to $27,000 in a few seconds. After one year…Your car will lose the most value in the first year you have it. Experts estimate that new cars lose 20% of their value in the first year. After five years…After the initial depreciation of the first year, cars tend to lose about 15% of their value every year. By the end of the car’s first five years, it will lose about 60% of its original value. Depreciation occurs due to a number of factors, including:Mileage. High mileage shortens the amount of usable time left on the car and causes faster depreciation. Age. The older a car is, the less it’s worth. The Make and Model. Certain car’s depreciate at a faster rate simply due to supply and demand. Value is ultimately based on how much someone is willing to pay for it. If you have a less desirable car, expect your car to depreciate at a faster rate.Ownership History. Cars with fewer owners will depreciate more slowly than those with a lot of owners.Condition. If the car is in good condition and has not been in a lot of accidents, it will depreciate slower. If it has a pretty checkered past, it will deprecate at a higher rate. Regular oil changes, alignments, and general maintenance will slow deprecation. Color. While this seems insignificant, the color of your car will actually dictate depreciation. Neutral colors depreciate slower than other colors, since neutral colors are always in style. Is getting gap insurance worth it?GAP insurance is specifically designed for people who are financing, so it will not make sense for everyone to get it. But there are times when it is definitely worth it. Ask yourself the following questions to determine if GAP insurance is worth it. Did you put less than 20% as a down payment?GAP insurance helps you when your car loan is underwater. This means that you owe more on your car than your car is worth. Your car is more likely to be underwater if you did not put a significant amount down. Depreciation occurs at different rates depending on your car, but your car starts depreciating the minute you drive off the lot. The more you put as a down payment, the less likely your car’s depreciation will outpace the car’s value.Is your car a lease? Your car lease may specifically require GAP insurance, in addition to collision, comprehensive, and liability. Check the fine print to determine if it is necessary.Does your car have a high depreciation rate?As we mentioned above, different cars depreciate at different rates. Luxury cars tend to depreciate at the fastest rate, but every make seems to have a few models that suffer from depreciation more than others. Be sure to do your research to determine if your car will suffer. Do you drive a lot?One of the biggest contributors to depreciation (that you can control) is how many miles you put on your car. If you drive a lot, your car will depreciate faster and will have a higher chance of ending up underwater.Do you have a long repayment period?The longer your repayment period is, the higher the chance is that your loan balance will outweigh your car’s value. Long repayment periods are great for your monthly budget (after all your monthly payments will be lower when you have a longer period to pay the loan off). But long repayment periods mean that you will pay more in interest over the life of the loan and your car will have a greater chance of becoming underwater. GAP insurance can help protect you from this.Can you get gap insurance after you buy a car?GAP insurance is not offered by car dealerships, so getting it after you purchase your car is not a big deal. You can get GAP insurance through most standard insurance companies, or you can get it from a third party.If you are looking to refinance your car, Auto Approve works with you to make sure you get the best GAP coverage possible. Our loans come with GAP to protect you from negative equity. And the best news is that GAP insurance is incredibly affordable. Most customers can get GAP insurance for less than $14 a month. And considering how much money and hassle that can save you, it’s a real life saver (at an incredible price).That’s everything you need to know about GAP insurance, and how you can decide if it’s right for you. If you are considering refinancing your car, it makes really good sense to bundle GAP insurance in with your new loan. It is easy, affordable, and can save you a lot of headaches in the future. No one wants to get stuck with a bill they can’t afford (and a car that’s totalled and still keeping you in debt). Auto Approve is here to help you refinance your car loan with ease. Our experts can help guide you through the refinancing process and make sure you get the best car loan possible. Add in GAP insurance and you are set.So don’t wait any longer, contact Auto Approve today to get started!GET A QUOTE IN 60 SECONDS