Motorcycle refinancing can be a simple task and, in nearly
all cases is a chance for you to save time and money. Because
you are paying off an existing loan from a different lender it
will have a lower APR (annual percentage rate / interest rate).
Therefore monthly payments will be lower as the interest has
dropped. This can allow you to pay off your loan sooner as installments
would be smaller.
What to look for when refinancing your motorcycle loan
When looking at refinancing find a company who can give you
lower interest, lower monthly payments and where you can pay
off your loan sooner without the worry of prepayment penalty
fees.
Refinance as early as possible. Soon after you obtain the loan
is a good a time as any - because most of the interest is paid
in the early payments. While refinancing your loan later on in
the loan period won't save you as much money as refinancing earlier,
you should still be able to save money nonetheless.
What to do when refinancing
The first thing to do when you want to refinance your motorcycle
is to call the people your loan is currently with and ask for
the motorcycles loan payoff amount.
Then find a finance company who is offering a lower APR rate
than what you are paying now.
When you apply make sure the spelling on the application is
exactly the same as your last loan as this is how they identify
and find your loan.
All vehicle information must be correct - this is so the company
can price the vehicle. You will need the year and model of the
motorcycle and the VIN Vehicle identification number. This can
be found on your registration.
You will need to refinance a loan worth more than $7500 - otherwise
it it not worth the time of the refinancing company to do any
lesser amount. The loan must also be an approximate amount of
the vehicles value.
Motorcycle refinance loans should be approved within an hour,
you should then get instructions on how to pay off you existing
loan.
You will need to tell the current owner who the new lien owner
will be and that they will have to send the tittle to them not
you. There may be a state fee of $5 or more to transfer lien
holders but depending who you refinance with that could be the
only fee.
Your loan can be entirely refinanced within 2 days.
Benefits of refinancing Motorcycle Loans
You can't refinance your motorcycle loan through the same company who is financing
your existing loan, as there is no incentive for them to refinance your loan
as they would earn less money off you.
Benefits of refinancing your motorcycle loan include a lower
APR, no frustration over dealer financing, approval is usually
within the hour as long as its in business hours, and no hidden
fees, and no prepayment penalties.
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