Interest rates for refinancing are usually higher than interest rates for the purchase of a car, and for this reason you need to make sure that you pay special attention to the refinance interest rate when you apply for a loan. You may see an advertisement from a lender which states a low interest rate for auto loans, but upon further scrutiny you may find that this rate is only for the purchase of a new car, and not for the refinance of a vehicle you already have. Although you may have to do a little searching to find the actual interest rate offered for refinance loans, you should also be aware that these auto refinance rates may only be for people with good credit.

If your credit has some blemishes on it then you will either be offered a higher interest rate or you will be turned down for the loan. Refinancing an auto loan is a great idea if you are able to get a lower interest rate, but don't be lured in by low interest rates advertised which won't even apply to your situation.

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