Auto loan

Many people already know about home loan consolidation. But, they may not know about auto loan consolidation.

An auto loan might be something that you believe is out of your range, as many lenders out there will not give car loans to those with bad credit.

Vehicles are assets, and auto loans can be refinanced, too. Ideally, with auto loan consolidation, there is room to combine other expenses into the new loan.

According to Experian Automotive, a division of consumer reporting agency Experian, automotive loans which are at least thirty days past due has jumped by 17% in the fourth quarter of 2008 versus the same quarter a year earlier.

"There continues to be a steep climb in the number of people past due on their auto loans, which causes a negative ripple through the industry,"said Scott Waldron, president of Experian Automotive. "As more loans become delinquent, lenders begin to tighten their criteria for automotive lending. Ultimately, this makes it more challenging for consumers to find funding when they want to buy a car or truck and more difficult for dealers to help consumers secure financing."

The Benefits Of Auto Loan Consolidation

Streamline Expenses

With auto loan consolidation, you could combine other loan balances into a new auto loan if you refinance more than the existing auto loan amount. After the original auto loan is paid off, you could pay off a credit card or two, for example, with what's left.

The result:

One monthly payment vs. two or three

Fewer bills to manage

Combine more than one auto loan to lower overall monthly payments.

If you have two auto loans and one is smaller, for instance, you can combine both of your current auto loans into one new auto consolidation loan. That means one new auto loan, one new monthly payment for you.

Refinance one auto loan to lower the payment.

Refinancing one auto loan to reduce your monthly payment may better fit your needs. Many vehicle owners who refinance with an auto consolidation loan actually lower their monthly payment.