So, before acquiring your new Honda car in 2010, take time to weigh the two options and decide which one is the best. Here are the comparison of benefits:

Honda’s Leasing Program
Just remember that in leasing, you are not buying the vehicle instead you contract the company to use it. Some of its benefits are as follows:

1) Cash Up Front is Less – If you don’t have a substantial amount of money for down payment, then leasing is a very good option.

2) Monthly Payment is Lower – Because the depreciation of the leased car is considered, you will practically have a lower monthly payment compared to the financed car.

3) Choice for New Car – If you are the type of person who loves new cars periodically, then short term lease contract is a good solution.

4) Guaranteed Future Value – Even if the the car has depreciated significantly, you don’t have to worry about the resale value. You can look for another car at the end of the term. But if it’s value is worth more, you can keep it, resell it or buy it if you want.

Honda’s Financing Program
If your are the type of owner who loves to keep cars for good, or at least you are contented on even for several years, I would say financing program is likely for you. Other benefits are as follows:

1) Ownership – Not only it provides a sense of pride but it can also build equity.

2) Mileage Restriction is not a problem – If you drive more than 12,000 to 15,000 miles per year, it’s no problem because it’s never a concern for financed program.

3) Control over appearance – Since the car is basically yours, you can do some make over or change any parts you want change. You can design it based on your character, personality or social behavior (lol).

Now, given the advantages of both programs, it’s up to you to decide. Car financing or leasing? It’s now your call.

In general a bad credit score will require paying much higher interest rates. Sometimes it can also adversely affect your getting auto refinance. But even with bad credit you can still qualify for auto refinance.

The following tips are useful for people having a bad credit score.

1. Have a copy of your credit score. Before applying for any loan it is important to know your credit score and to verify that all information being reported to credit bureaus is accurate. You can get a copy of your credit report online from any of the credit referencing agencies like Experian or Equifax. Dispute any information that you believe is not correct and pay off any debts you can to help raise your credit score before applying with a company to refinance your auto loan. Many salespersons or loan officers may mislead you about your credit score and may charge higher rates. So, you should have your credit report with you while negotiating.

2. Wait for at least 3 to 6 months after taking the first car loan. Write or call the lender currently financing your vehicle and request the pay off amount. The lender will mail you a letter with the exact amount currently owed on your vehicle. This letter will be used by the auto refinancing company to help them approve your requested loan amount. After the 6 months period, you can start looking for auto loan refinancing companies.

3. Get copies of check stubs and/or tax returns. A proof of employment will be necessary when you apply for car loan refinancing. If you are self-employed, most lenders will request your last two tax returns with the Schedule C. If you are employed by a company that issues a W-2, you will usually need to provide two check stubs and/or your last W-2.

4. Get help from professionals: Contact banks and lenders that specialize in bad credit auto refinancing if you are unable to find yourself an auto refinance company. There are many websites that find auto refinance for people with bad credit.

5. Pay some principal amount: You can buy an affordable APR by submitting some principal amount to the financial institutions. This is a good way of getting a few percentage points lower APR. You get the benefit of auto refinance and at the same time you will repay your car loan quickly.

6. Maintain good bank records for 6 months: The majority of bank and financial institutions look for your past 6 months bank records. So, before refinancing your car you should ensure that you pay bills on time for at least six months. Banks may then offer you an easier car refinance deal.

7. If your credit Score is less than 600 don”t submit loan applications that keep getting rejected. The rejections will drop your credit score even further. Look for a specialist bad credit lender.

8. Complete your application over the phone or by fax. If your loan to refinance your vehicle is not automatically approved, be sure to call to follow up in two or three business days.

You always have the option to make your car loan manageable. The best time to refinance auto loan is when there is a drop in the market price of car loans or when your credit score has gone up. You can always check the market price of car loans for your reference. If the average interest rate of car loans is lower than the rate you are receiving on your current loan, you are in good position to refinance a car loan.But if the average interest rate of the car loan market is higher compared to your current loan, refinancing a car loan is not advisable. Lenders base their interest rates on credit scores. If your credit score has gone up since your first loan, the greater the possibility to get a lower interest rate for your auto loan. But, if there is no changes in your credit score since you got your auto loan, you will probably not get a lower interest rate.

You should always look into a reputable lender with a lower interest rate because low interests can save hundreds or thousands of your dollars every month. Do not be deceived of low monthly payments offered by lenders. If you consider smaller monthly payments over lower interest rate for your auto loan, you will be wasting your money in the interest for longer period of time. Rather, pay your auto loan at a lower interest rate for a shorter time, will give you more savings.

Refinancing a car loan and save money at the same time is always possible. This financial responsibility goes a long way, so you just need to be prepared.

How does car loan refinancing work?

The process is simple though the ways for auto refinancing loan differ through which kind of current car loan you have.

Here are some simple steps on car loan refinancing:

• First, you need to begin searching for the best company for car refinancing. There are many websites today that offers refinancing car loans so you need to do window-shopping and compare the auto refinancing rates of the different lenders.

• After you find the best lender which offers the best available rates for you, you should provide your financial information to them in order to qualify for the loan before any transactions take place. The lender needs to know you annual income along with your asset, credit ratings, and debt load.

• Once the loan has been approved both parties and closing the deal, the new lender pays off for what you still own for your old car loan. The title would be transferred to your name and the monthly payments would be made through new lender.