Consumers Not Taking Advantage of Refinancing

A significant amount of consumers are not aware that they can refinance their auto loan, according to a survey by RateWatch.

The survey was designed to study the behaviors and preferences of consumers regarding their current loans and future loan plans, and found that 27% of respondents did not know that refinancing was an option. RateWatch also found that 59% of respondents were aware that refinancing was possible, but did not take advantage of the opportunity.

“Auto-loan refinancing tends to be somewhat uncommon and it’s unfortunate, since consumers can save thousands of dollars in the course of paying off their loan,” said Ross Kenneth Urken, personal finance editor for TheStreet, in a press release. “It’s a technique more consumers need to recognize as beneficial to their finances.”

The survey also revealed that car owners that have had their car for five or more years were more likely to know about, and follow through, with refinancing their auto loan, but those that have had their car less than five year were unaware of their options.

Over 500 responses were obtained through a third party service, with questions distributed March 28 to March 30, to consumers ages 18 and older throughout the United States, for the survey.

RateWatch is a banking data and analytics service owned by TheStreet, Inc.; an independent digital financial media company providing business and financial news.