Refinancing Cars is a Growing Trend

The current economic slowdown has allowed many homeowners the chance to refinance their homes at lower interest rates. But, there may be another opportunity to pay less interest because of the drop in rates on your car.

Linda McCauley just sold her sport utility vehicle to herself, and saved money in the process. "Maybe a hundred and fifty a month to save on interest." Just a few months after she bought the SUV, interest rates dropped dramatically. "You always find something that you buy and you're paying interest and you think, uh-oh. I could have gotten it over here cheaper. And, then of course, I knew about refinancing so I talked to my husband about it and he said if that's what you want to do, go for it."

United Heritage Credit Union in Tyler says refinancing cars is their biggest new business opportunity of the year. "The market has come down faster than the value of the automobile, which is quite unique," said Regional Manager J.B. Hornbostel. "For right now, as this is occurring, this is a win win for the consumer and the financial institutions."

Refinancing cars isn't for everybody, and the low rates won't last for ever. But folks like Linda who bought new cars and trucks before rates plummeted may have the go ahead to save a little green.

There are a lot of factors which determine the interest rate you could get refinancing your car, including mileage, the age of the car, and your credit rating. So, the best advice is to check with your bank to see if refinancing is right for you.