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Wednesday, August 17th
MotoRefi is based in Denver and focuses strictly on refinancing for car loans. Their funding comes through "partnerships with top local and community lenders" , saving customers an average of $100 on monthly car payments.
Unclear eligibility requirements
We had a challenging time figuring out which vehicles were eligible for financing through MotoRefi. While their FAQ states that they work with all cars and trucks, there were several we didn't spot in their dropdown list of make/model in the quote application (i.e. the same exclusions openly listed by their rivals, such as Hummer and Saab).
Can get quotes without entering SSN
The rest of the process was straightforward. You can enter your car's VIN or your license plate number, or use the make/model/trim, to allow MotoRefi to approximate the value of your vehicle. You'll also provide your loan payoff amount and estimated monthly payment, your address and basic employment details. We were happy that this service doesn't require entering a Social Security Number for identity verification.
Very competitive rates and terms offered initially
We were given quite a few attractive options for our auto refinancing loan. Terms ranged from 36-84 months, and interest rates were very competitive with other lenders. If we wanted to go with one of the loans offered, at that point we would have to create an account and enter our SSN to finalize the application and have a hard credit pull.
Charges a costly one-time fee
When working with MotoRefi, you can expect a $399 fee to be included in your loan amount. That's payable to MotoRefi, not your lender, for the costs of document processing and retitling. Very few lenders we evaluated charge a fee for their referral service: this is a big factor in MotoRefi's last-place ranking among providers of auto refinancing.
BBB rating discrepancy
We were glad to see the graphic on MotoRefi's page showing an "A+" rating from the Better Business Bureau. But, when we went directly to the BBB, it turned out that the company actually had an "A-" because of a small number of (resolved) complaints registered there. We get that it can be challenging to keep a website updated with something small like a BBB graphic, but it left us feeling a little less-than-impressed.
No easy-access disclosure of lending partners
There were also no details offered about MotoRefi's lender network. Who, exactly, would be funding our auto refinancing loan? Is it a lender we could trust? Where most referral platforms give you some idea of who they work with, either during the application process or openly listed on their website, MotoRefi is glaringly silent in that regard.
Company needs more transparency
Their low APR interest rates are extremely appealing (if you qualify), and that makes it hard to walk away from MotoRefi for car loan refinancing. However, we need more than an enticing rate to get us to commit to a provider that doesn't offer much information about how, exactly, those low rates are going to come about. And, with a hefty servicing fee of almost $400, MotoRefi eats into any savings we might be getting with a lower interest rate. Until this company gets more transparent with the details of their car loan refinancing program, we recommend you choose a different provider.
With interest rates dropping like crazy, you're smart to think you might be able to save some money with a new loan. Whether you choose to keep your monthly payments the same and shorten your loan term or lower your payments and spend your cash on other necessities, it's almost a guarantee that refinancing will be a good decision.
In the past, most people would go to their bank or credit union to get a car loan refi. After all, it's comfortable, familiar, and easy to set up with checking or bank accounts that are already established there. But, that's not the best idea if you want the nation's top rates and terms for car loan refinancing. Your hometown bank doesn't need to compete with other lenders for your business: they already have it!
Money-wise consumers look to the internet for the best deals, and car loan refinancing is no different. There's no need to accept the first loan offer you see if you can get quotes from several financial institutions at once. Most online lenders have rates and terms that will easily beat anything you find locally, with all the convenience of a completely-online application and approval process. Save money while sipping coffee at home in your pajamas? Why not!
Looking at the available options for car loan refinancing online, it can be hard to tell different lenders apart. Which one should you use, not just to get an initial rate quote but ultimately to finalize your new loan? Here are several ways you can evaluate each choice to find the car loan refinancing that's right for you:
TopConsumerReviews.com has evaluated and ranked the best providers of car loan refinancing available today. We're confident that this information will help you get the rates and terms you're looking for to save money on your car payments!
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