Hello, everyone and welcome back to a new video shawn's, a name and we're talking about auto loans today. Now, yes, before you say it, i do home loans, not auto loans, but when you're financing a tangible asset, the principles and numbers are essentially the same. That's why today, i'm gon na show you one how to properly finance or refinance a car and when's a good time, when's, not a good time and then two how to do it without actually getting screwed plus refinancing a car loan is actually really easy and can Be done online, which i'm going to show you in this video, so hang tight all right. First up to get a negative interest rate on your auto loan refinance you're going to want to hit the like button on this video just kidding well, except for actually hitting the like button.

You definitely want to do that, but you're here to see and learn more about refinancing an auto loan, i'm going to show you how you can guarantee you're getting the best rate at the lowest cost on your auto loan. But first i want to explain when's a good time to refinance and when's not a good time to refinance. Actually because i know everyone is incredibly busy and if you're just here to find out how to properly refinance your car by saving you the most money possible. Then click the link in the description.

Okay, go over there. Do your car refinance through that link and be done with it. But if you want to actually learn why that link's the best and why i think you should actually refinance or not refinance a car, then continue watching. Okay, so a car refinance makes sense when one you're refinancing to a lower rate.

This is obviously the most popular reason. Someone would want to refinance their car loan unless you're changing the structure of the actual auto loan. It's going to be saving you a bunch of money. You just want to be careful for the refinance fees, but it's going to save you a bunch of money to adding or removing someone on the loan.

Let's say you needed a co-signer to buy that car. You really wanted. Let's say you were like man, this 2020 acura tlx is my dream car i need to have it and you're like i'm buying this car and the car salesman goes all right. Let me get your social, let me run your credit.

They run your credit and they're. Like yeah, your credit's terrible we're gon na need a co-signer and then you're like mom dad. I need you to co-sign right now, whatever they co-sign for you and you get the car. Well, you work on your credit for let's say a year and you don't want your parents to have any ownership or any liability on that car.

You can refinance that auto loan to get them off of that auto loan or, let's say on the flip side, you actually want to add someone. Let's say you buy a car and all sudden you get married and your your spouse starts driving the car more than you do and you go. You know what we should both be on that loan. We should share that liability.

We should both be on the title for insurance reasons. Things like that. Well, you can refinance to get your spouse added on and then. Thirdly, you can refinance your car to buy out your current vehicle's lease.

Some people will lease a car and go. You know i'm probably gon na drive it for one two or three years once they start driving, they go man. I really like this car and i want to actually own this car. You can refinance that car to actually pay off that lease and pretty much own.

Your car and then lastly, lowering your monthly payment. So i work with a lot of individuals who come to me and they say my dream: home is 350 000. Do i qualify and i go man we're right there we're right on the bubble, but you just have too much liability. Your car payment of x amount of dollars a month is just a little bit too much.

If we could lower that a little bit, you would qualify for that dream home. So you can refinance your car to a lower monthly payment and it doesn't necessarily mean that your interest rate is going down. What you could do is re-amortize your auto loan. So, for example, let's say you owe 20 000 and you're on a 24-month term with a 3.11 interest rate.

Okay, that's about 861 dollars a month payment, which means you'll pay about 654.34 in interest over the course of that loan. Now you can refinance that to a 48-month term, re-amortizing it to lower your monthly payment to 444 dollars, but then you'll end up paying about a thousand two hundred: ninety five dollars and sixty-six cents in interest over the course of that loan, so you're getting a lower Monthly payment but you're actually spending more money over the course of that loan. So i only recommend you do this in certain situations, one of which would be let's say you got a different job. You're, making less money or money is just a lot tighter.

These days, you can refinance your car to kind of relieve some of that stress or, like i said previously, if you're trying to buy your dream home, you can't quite afford it, because your debt to income ratio is a little too high you're trying to just lower That so you can afford the home you want, then you can refinance your car stretch out and re-amortize that loan close on your home and then, if you'd like you, can pay the car off later or you can refinance it again to bring it to that shorter Term it'll work great now. Let's talk about real briefly, when it's not a good idea to refinance your car so, first and foremost, which is the most obvious, try not to refinance to a significantly higher interest rate. Now i do know in some situations you kind of have to, and you know you got to just bite the bullet on it and it is what it is but try not to. You know, that's kind of some common sense and then.

Secondly, you do not want to pull cash out of your vehicle. Do not use a depreciating asset to pull cash out of because i promise you you're going to be upside down way quicker than you think you are and i met so many people who are and ends up screwing yourself way much more down the line. So just do whatever you can to not pull cash out of a depreciating asset and let's do an example. So let's say you buy a brand new car for 50 000 and you put a large down payment on it.

So you only owe ten thousand dollars well, if you did a cash out refi on it after a year of owning it. Let's say you took twenty five thousand dollars out now you owe thirty five thousand dollars. Problem is two years later, you're going to owe twenty eight thousand 000 plus. Yet the car is only going to be worth 25.

000. 215. I mean come on also that's with using a 25 depreciation rate on the first year, you own it and then 18 for the next two years. So again, don't pull cash out of a depreciating asset, pull cash out of an appreciating asset.

Okay. So now that we know when to refinance a car and when not to refinance a car, let's see how we properly refinance our car. If you call a car dealership, you lost. If you call a big bank, you lost step.

One go to the link in the description. Okay, as many of you know, i'm a mortgage broker and whether you're a mortgage broker an insurance broker. A auto loan broker, whatever broker you are, the definition of a broker is essentially being able to take a specific person situation. So, let's say in this case your car loan situation and being able to shop it amongst you know: 20.

30, 40, 50. 100. Different providers to see who's gon na give you the best rate at the lowest cost. On that, given day a broker is always the way you're going to be able to save as much money as possible.

So why go to one bank to try to see what they're gon na offer you on your car refinance or your mortgage or your insurance when you can go to one broker and they're going to go to 40 different providers for you and that's why i recommend My auto loan, which is linked down below and they're, not paying me to say that at all, i do have an affiliate link down there, but honestly use any car financing broker online. That you can find that's just the best one i found um, but feel free to use any online broker for car financing and you're gon na get the best rate at the lowest cost. I know my auto loan shops you, i think, amongst like four or five different providers, so you can literally compare the quotes on the website and see which one is going to be best again use whatever service you want. You do not have to use my auto loan, i just like them, because it's really easy what i'm getting at you just want to be using a auto loan broker, because that's how you're going to save the most money.

My auto loan is essentially just an automated and online version of me, but for car loans, which i think is phenomenal, but that's really how you properly refinance your car and i want to actually say use this tool to your advantage when you're actually buying new cars. Never go to a car dealership and say yeah that acura that i really wanted. You know i want to buy it right now. What's the financing look like they're going to sit down with you and they're going to say: okay and they're going to break out.

You know monthly payment and all sorts of things and they're going to sell you on the financing, but if you're there to buy the car you're, not thinking about the financing so you're just like yeah, i want the car whatever the financing is: let's do it, but In reality, they could be selling you a much higher rate and a much higher fee for that car loan than if you were to actually do your research on your own. Before you went to the car dealership and come prepared, saying, look, i'm pre-approved for this amount for this car and i'm ready to go and i've got my own financing. Now they can't really sell you on a high rate or high cost loan, so use my auto loan or again, really any car financing broker to your advantage, even when buying a car. You also get to understand the terms of your loan and your financing, because you get to actually look at it and digest it and think about it for more than 10 minutes than when you're at the signing table of buying your new car.

So it is pretty important. Oh and hopefully, you've seen my videos on credit, and you know how important it is to have good credit in these situations, because any type of financing is going to be heavily dependent on your credit score. So credit is king. The higher your credit, the higher you're saving, but to wrap this video up.

I am a huge believer of you being able to master your finances and be off in a better situation than you were before watching my videos. I want to leave you with one last tidbit. The absolute best auto refinance isn't a refinance at all. I am a huge believer of buying depreciating assets with cash and appreciating assets with financing.

So if you can pay your car off or just sell it and get a cash car for much cheaper, that's what i highly highly recommend and that's gon na end up saving you so much money over the course of your lifetime. I know not. Everyone has the ability to do that, but i just want to say some of the most financially savvy and richest individuals. I've ever met have had the same principle and mindset on buying depreciating assets, and it's that you just don't finance them again.

I know it's hard, not everyone has the ability to do that and buying a cheap cash car. Isn't everyone's favorite but hey. If a 2006 ford f-150 gets me from point a to point b, then you know what i'm good. Ultimately, i hope you learned something new.

If you did again, i would really appreciate it if you can hit that like button and also share this video with a friend who's thinking about refinancing their auto loan, the more money you can save them, the better off everyone else will be so i would appreciate That as well, oh and then, of course, don't forget to subscribe, of course, but i hope you found value out of this video and i will see you next week. You.