Refinancing Car Loans Can Net You More Cash

Need a little extra spare cash to cover your monthly bills? You might want to consider refinancing your car loan.

Jonathan Shearin loves his little red Corvette but he doesn't love his car loan.

"After I bought the car I was looking around online and actually found I could get lower rates," said Shearin.

He found he could shave his loan by about 1.5 percent.

"It's actually a much easier process than home refinancing, and it's a cheaper process as well," said Jesse Toprak, executive director of Industry Analysis, Edmunds.com.

Unlike home refinancing, experts said, there are usually no points or fees with auto refinancing.

"People with interest rates that are perhaps higher than 8 percent should look into refinancing," said Toprak.

But be careful, you'll save if you lower your rate, but not if you extend the length of the car loan too much. Also, once you compare prices online don't be afraid to use that knowledge to bargain offline, at the dealers.