It may be the case that you hate the Car Loan you have taken, but you love your car. There is great news for you. It is the best time to do Car Refinance. Re-Finance is replacing an older Loan with a new Loan offering better terms. This is applicable for Car Refinance also. Re-Financing your Car Loan has become easy with Interest Rates going down day by day. If you go through your present Car Loan contract, certain questions may arise in your mind such as:

1. Do you have to pay a high Rate of interest on a long-term Loan?
2. Is there a clause of penalty for early payment?

You should be ready to take a new Car Loan if there is a high Interest Rate and there are no or low penalties in case you make an early payment.

Brian Reed, who is the President of Capital One Auto Finance recommends that Refinancing your auto Loan via the Internet is one of the best-kept secrets today. He says that the time taken to complete an application which is about 10 minutes is all that it takes.

You should try to figure out how much savings you can do. For example, you have purchased a new car six months back. The dealer told you that your Loan would be calculated at 11% on a Loan taken for 5 years for a car which costs $23,000. So your monthly payment is approximately $500.

You are searching the web and you have found a company which is offering Car Refinancing. The balance of your Loan can be refinanced and it is possible for you to lower down the Payments to approximately $400 per month. So over the life of the Loan, you can make a savings of approximately $6000. There are some other examples that might be unbelievable to you. Sometimes it is heard that a person who has bought a new car is stuck with a Loan which is charging about 18% Rate of Interest. The monthly Payments can be slashed down if he re-finances the car at a competitive Rate.

Capital One recently acquired Capital One Auto Finance, which had been giving Loans mostly to Super-prime Customers. This has now resulted in their ability to provide Refinancing for Car Loans to a more broad spectrum of Customers, which includes the Sub-prime or 'under-served' class of Customers.

The Refinancing game is also being played by the other lenders. For example, E-Loan Inc., and BankLoan.com.

Capital One Auto Finance started their business in 1995 and they have become a leader in the field of online lending.

At the present time, one of the lowest Interest Rates is offered by Capital One Auto Finance in the field of Car Refinancing. Those who have strong credit are able to re-finance Loans up to 5 years at 6.75% (for current Interest Rates, please see Capital One Auto Finance).

Applications are taken over the Internet and online lenders like E-Loan and Capital One Auto Finance provide Customers the Interest Rate quotes and the monthly payment quotes. After establishing a line of credit a check or draft is issued which can be utilized at a car dealership.

Brian Reed has classified and given names to four types of Customer who should re-finance their Car Loans.

1. The Saver
This type of Customer always keeps an eye on the Fed (Federal Reserve). They start shopping in an attempt to improve their own financial condition when Interest Rates are falling down.

2. The Newly Educated Remorseful
A person may have purchased a new car recently and the finance was made through the dealership. When he was made aware by a friend or neighbor that the dealer has marked the Interest Rate up by several percentage points, then he becomes remorseful and he starts to search for a new Car Loan.

3. The Budgeter
A person might have purchased a car on a Loan which is short term, for example 2 years. In spite of the Payments being high, they are affordable to him. If this Customer's financial condition changes, -say he has purchased a house and his monthly expenditure is going up. After looking at his Car Loan, he develops a desire to distribute the payment over a longer time duration. An easy way to do this is Refinancing the Car Loan.

4. The Lessor
These days many people lease out their cars. At the end of the lease period, sometimes it is seen that they have a desire to keep the car. The dealer is unable to help out to establish a Loan in some instances. A smart move in this instance can be a 'buy out' where the Loan is established by the Customer and the car is actually purchased by him.

Customers who previously had shaky credit and made car Payments for 2 years on a Loan taken for five years can qualify for a more high credit range and they can avail a re-financed Loan in which the Interest Rate is lower. This is another instance which deserves Refinancing.

If you visit Bankrate.com, you can have a look at the current rates of Refinancing for Car Loans. Three of the most important players in the Refinancing game are Bankrate.com, Capital One Auto Finance, and E-Loan.com. In Car Refinancing, Bankrate.com follows the 'referral' system-they collect Loan applications and match them with banks. Direct lenders like E-Loan or Capital One match your profile as referred by Bankrate.com.

You can make more savings with this process. It is becoming much more attractive day by day. You should remember that if the federal Interest Rate is going down, auto Loan rates will also go down. Why should you waste money in the way of paying Interest? Search the web and the future wave will drive you for a better Car Loan. One important thing should be always remembered. For the Refinance process, no points should be charged.