To make matters worse, the lender doesn’t have a lien on the car you paid off with its funds.
As with any loan consolidation, the main goal with combining car payments is to make payments simpler to manage.
The most common method used to refinance a car payment, according to Interest.com, a home equity line can be used to pay off any living expenses, including car loans.
Once you pay off the car loans with your home equity line of credit, the car payments roll into the home equity payment, giving you only one monthly payment. Personal loans can be difficult to come by, especially if the economy is weak, but, if you can get one, you can use it to pay off both of the cars and have only the one loan payment to pay each month.
Combining two car payments into one not only serves to eliminate a bill that you must remember to pay each month, but sometimes gives you the opportunity to change the terms of the loans.
By refinancing two car payments into one loan with a lower interest rate, you lower your total monthly payment.
Is anyone aware of a lender that would consolidate these into one loan and therefore one payment?