The History of Auto Refinance
The concept of consumer finance and auto finance in particular serves the seller of the vehicle by making it possible to sell more vehicles. It also enables the buyer to purchase a vehicle over time. Through auto refinancing they would be able to sell many more vehicles than if the buyer had to pay up front or in 1 year.
When auto loans were first introduced to the American population during the 1960’s, loan refinancing was not a possibility. Because car loans were required to be paid in full over a 12-month period, simple refinancing was not an option. As the auto industry has increased in size and vehicles have become much more expensive, the brilliant idea to refinance an auto loan was developed. Over the past 20-30 years, auto refinancing has become a very common and popular practice within the auto industry. Once the life of an auto loan was extended past the initial 12-month period, the concept of being able to refinance a 24, 36, 48, 60, or 72 month auto loan was quickly put into practice. A theory that was originally adopted by GMAC, the first auto loan provider, refinancing a car loan quickly gained momentum. Now, with many different refinancing options, the auto industry has reinvented what is means to refinance an auto loan. Providing individuals with various refinancing incentives, less term payments and lower interest rates, the time to refinance your auto loan has never been better.