As the second most expensive household purchase you make next to buying a home, your car can be refinanced just like a house. Thus giving you the opportunity to lower your interest rate, the lower your payments.

It�s simple. Refinancing with lets you have the same car for less money. Switching to a loan with a lower interest rate than the one you have now can save you thousands of dollars over the life of your loan. Depending on your rate, your total payments can vary by thousands of dollars.

As an example, lets say that you have an existing loan of $25,000 for 60-months at 10% APR. Your monthly payment would be $ 531.18. Refinancing your auto at a rate of 8.00% APR would make your monthly payment $ 506.91. You would save $1,455.48!

The majority of financial advisors recommend refinancing your automobile when you can lower your interest rate by more than one percentage point. Currently, rates overall are still low enough that there is a possibility that you are paying a higher interest rate than you should. Here�s how to check:

1. Find your original sales or loan contract, review your current interest rate and how many more payments you are scheduled to make.
2. Compare the APR you are paying now to the latest refinance rates. Keep in mind that the better your credit, the lower the APR rate you may be qualified for.
3. If your current loan APR rate is at least one percentage point higher than the latest refinance rates, then refinancing you automobile would make sense.