When most people purchase a car, they are familiar with one way of doing that. They pick out their car, mostly based on the monthly payment that they can afford, and if they qualify for the loan, they get to drive the vehicle home that day.
From that point on, they pay their car payment until the car is paid off. However, there is another wrinkle to that occasion. Most folks don’t understand how most automobile financing programs work. The lenders or the people to supply the financing plans to car dealers and used car dealers are in a very competitive market, so they offer the dealerships some very good incentives to earn their business.
The lender places a buy rate or a floor which is the price to the dealership in the form of an interest rate. In turn, the dealer can mark the interest rate up for his profit. This rate for the dealer can be an additional 2% to 4%, which is then paid to the dealer as profit to him at the closing.
Consumers don’t realize for the most part that they could avoid this extra charge if they arrange their financing at their bank or credit union. This is why Ignition Financial of Austin, Texas can now offer an automobile refinancing program where a loan that a consumer made originally can be refinanced, which can save quite a bit of money.
Once a consumer learns that this program is available, they have no problem in saying, “Yes, please go ahead and slash my payments on my car loan.” The extra savings can mean so much to a family with expenses such as medical bills, school expenses, taxes and everything else in the way of costs families encounter.
Ignition can pre-calculate what the payments will be if a consumer wishes to take advantage of a refinancing program. When a consumer’s original car note was established at an earlier time, the individual’s credit may have been at a low point, and possibly not it has been built back up. There is no need in a case such as this for anyone to stay with the older car payments.
The Ignition car refinancing program is the sensible thing to do in most cases due to the proprietary plan available. When people understand the program and see it in action in their own situation, there is no equivication in the matter.