Auto-Loan-Refinance-FAQ

Frequently Asked Questions about Refinancing Auto Loans

Have questions about how to refinance car loans through CARS? We have you covered in this section.

What is an auto refinancing loan and how does it work?

Much like a home refinance, you are also able to refinance your auto loan through car refinance companies like CARS (but without all the fees). An auto refinance loan would pay off your existing loan with the proceeds from a new loan in order to take advantage of lower monthly payments and/or lower interest rates. CARS would help you find a new lender who specializes in refinancing auto loans with better loan options than your existing loan. Typically, we refinance your current loan amount and start your new loan at the loan term you have remaining at a lower interest rate and/or payment. However, we do offer a range of loan terms, up to 60 days no payments, and products such as GAP and VSC to best fit your needs.

I received a letter or email from you. Where did you get my information from?

We purchase promotional marketing lists from credit reporting agencies (such as Equifax, Experian, and Trans Union) of people who meet certain criteria for our program. These lists provide general information such as names and addresses and are used when determining our direct marketing programs. If you choose not to receive promotional marketing offers and/or “prescreened” offers of credit from us or any other company, you can call the consumer reporting agencies toll-free at 1-888-567-8688 and request to be removed from future lists.

Will I have to give my social security number to apply for the refinance?

Yes, your social security number is necessary in order to determine your credit history. Our lender(s) will need it to perform a credit check/inquiry in order to make a decision on the application and get you the best possible refinancing auto loan rates. However, we never sell customer information. Our system is secure and all information is kept confidential. Our customer’s security and privacy is our #1 priority!

What determines if my application will get approved or not?

Credit underwriting decisions are based on information in your credit history including, but not limited to, your debt-to-income ratio as well as your employment history.

How long does the process take once I am approved?

Once a loan officer has reviewed loan options with you, loan documents will be delivered to you either electronically or via priority mail. If via priority mail, you will typically receive the documents within 2-3 business days. Once we receive the signed documents back from you, it usually takes about 10-14 business days for your current lender to receive the payoff check and post the funds to your account.

What annual percentage rate (APR) will I receive? How do I know if I qualify for the advertised lowest rate?

Refinancing auto loan rates and the APR offered is based upon the applicant’s year of vehicle, term, loan-to-value and credit score. APR’s may vary based on loan characteristics, including but not limited to, automatic debit of payments, amount of the loan, and other factors. All loans are simple interest, fixed rate loans with no prepayment penalty from one of our lending partners. Your loan officer will explain the annual percentage rate and term options that you qualify for once your application has been approved.

Will the loan be a fixed rate loan, and will I be penalized if I pay the loan off early?

All of the loans we offer are simple interest, fixed rate loans with no pre-payment penalty if the loan is paid in full early.

Can I pay extra towards the principal balance of the loan at any time?

Yes, anything above the minimum payment due will be applied to the principal balance, less any late fees (if any).

Does CARS sell the names of their customers?

No, CARS is not in the name-selling business. We only share customer information with partners for the purpose of refinancing your auto loan. Our customers’ security and privacy is our #1 priority!

Do your lenders accept online payments?

Our lenders typically offer a range of different payment options to help make banking easier for you. Please ask your loan officer about specific payment options available for the lender involved in your refinance.

Do I have to pay any fees to CARS for the refinance service?

No, unlike some car refinance companies, there are no application fees, origination fees or early payoff fees. However, each state does charge a minimal title transfer fee to change the lien holder (bank) name on your title. Your loan officer will explain the exact fee once your application has been approved.

What if my payoff happens faster than you expected, and my existing loan is overpaid? Will I receive a refund if my payoff amount is less at the time the payoff check posts to my account?

Your current lender will refund any overpayment directly to you once they receive the payoff funds. Each lender is different on the amount of time it takes to issue these refunds. However, most lenders will post the payoff proceeds and show the account paid in full within 10-14 business days.

Am I obligated to accept the offer you give me once I have applied?

Absolutely not! You are not obligated to accept anything we have to offer you. You will have the opportunity to review all documents in the comfort of your own home, and decide whether you would like to move forward with the refinance or not. We are one of few no-pressure car refinance companies out there.

How do I know this is a credible offer, and that CARS is a credible company?

We are a member of the Better Business Bureau and hold an outstanding record with their agency. Here on our website, you will find a link to the BBB where we are listed in Missouri.

What does “Up to 60 days, no payments” mean to me?

You have the option to skip up to 60 days without a payment due on your loan! This can free up some extra cash to use for something else immediately. With this deferred payment option, interest will accrue during the deferred period. The deferred payment period of 60 days may not be available with all lenders.

I want to purchase a new car. Can I originate a loan through CARS with the dealership?

No, we only refinance car loans and are unable to originate loans. However, once you have purchased a new vehicle and registered it with the state you reside, we would be very happy to assist with refinancing the loan for you at a lower rate. We can refinance car loans rather quickly after the original loan is originated, and there is no requirement to hold an original loan for an extended period of time before deciding to refinance.

Am I able to refinance more than one vehicle?

Yes, you can apply and refinance car loans for as many vehicles as you like!

What is GAP protection?

GAP protection pays the difference between what you owe, and what the actual wholesale value of the vehicle is at the time of loss. The GAP protection we provide also pays your insurance deductible up to $1000 in most states. GAP protection is optional and not a requirement to obtain a line of credit.

What is a Vehicle Service Contract (VSC) ?

A Vehicle Service Contract (VSC), also referred to as an extended warranty, provides extended coverage for the mechanical breakdown of your vehicle during the contract period you choose. There are several different program terms and levels of coverage. To find out more, simply ask your loan officer to provide more details. A VSC is optional and not a requirement to obtain a line of credit.

Can I purchase a Vehicle Service Contract (VSC) without doing a loan with your company?

Yes, we offer the same Vehicle Service Contracts (VSCs) for purchase on a stand-alone basis.

How do I start saving money on my auto loan?

It’s simple! Complete our simple and secure online application. If you prefer to speak with one of our Application Specialists, just call our toll free number at 1-800-779-2111 and select option #1.

Learn more about CARS other products

Interested in learning more about GAP coverage? Head to our GAP FAQ page.

Want to know more about Vehicle Service Contracts? Visit our VSC FAQ page.