[null, null, null, null, {"document_url": "https://www.usatoday.com/story/money/personalfinance/2017/11/04/new-online-tool-scours-your-auto-bills-savings/827776001/", "unformatted_src": "https://www.gannett-cdn.com/media/2017/11/03/USATODAY/USATODAY/636453092622235270-11-03-17-CarQuotes.png", "src": "https://www.gannett-cdn.com/media/2017/11/03/USATODAY/USATODAY/636453092622235270-11-03-17-CarQuotes.png", "formatted_filename": "CarQuotes"}, null, null]
This new online tool scours your auto bills for savings

CreditKarma.com estimates that 4.7M users are overpaying on auto loans. The site's new auto dashboard notifies users if a score improvement means they could qualify for a better rate.







Kelli B. Grant, CNBC Published 1:00 p.m. ET Nov. 4, 2017 More people are 60 days behind on their car loans, Experian Automotive says More people are falling at least two months behind in making payments on their auto loan, a new report showed Tuesday. USA TODAY The type of car you drive is one of the key variables car insurance companies plug into their formulas to determine how much to charge you. Depending on the vehicle, the cost of car insurance can vary by hundreds of dollars a year for the same driver.(Photo: Getty Images/iStockphoto)


When it comes to auto-related bills, your credit score has mileage.

CreditKarma.com, known for providing consumers with free access to their credit reports and scores, has begun an auto-assistant dashboard aiming to help drivers manage their vehicle finances. Among other features, members can check their DMV profile, view details of their loan or lease, gauge the value of the car, and see their auto insurance score.

Better yet, they'll get notifications if their credit score could make them eligible for better rates on their auto loan or insurance. Drivers don't often capitalize on that information, said Rory Joyce, director of product for CreditKarma â a realization that spurred development of the tool.

"We started to notice that many of our members have auto loans that were effectively mispriced," he said.

By the site's estimates, 4.7 million users are overpaying on their auto loans. Over the life of the loans, that represents $10.1 billion in unnecessarily high interest payments.

"We found just bringing awareness of what the calculated APR is, versus what we think they deserve, is eye-opening," Joyce said.

More: Nine nasty truths about car rental insurance

More: Looking for auto insurance? Here are 6 things you need to know

More: Hate haggling? 5 ways to buy a car without negotiating

Auto refinancing tends to be an under-the-radar option. In a report from used-car marketplace Instamotor earlier this year, just 9.2% of buyers had tried it.

But drivers will need to dig into the details to see if savings would pan out, said Matt DeLorenzo, a managing editor for Kelley Blue Book. (At the time of the interview, he hadn't used CreditKarma's yet-to-launch tool.) Cars depreciate quickly, and you may not be able to refinance if you owe more than the car is currently worth.

Savings can also be deceptive. If you refinance into a new loan with a lower rate but a longer repayment term, you may pay even more in interest over the life of the loan, he said.

"You have to really look closely at the terms of the loan," DeLorenzo said.

CreditKarma's nudges to reshop auto insurance may be valuable, too. Nearly 4 in 10 consumers haven't revisited their auto insurance to compare prices in at least three years, according to a NerdWallet report from earlier this year.

Estimated savings: $416 annually nationwide. Another feature on the new CreditKarma auto dashboard will alert drivers to open recalls potentially affecting their vehicle. On average, only 70% of vehicles subject to a recall get the necessary repairs, according to the National Highway Traffic Safety Administration.

Drivers may miss mailed manufacturer notices or be unsure what action they need to take, said Patrice Vincent, manager of federal affairs for AAA. (At the time of the interview, she hadn't used CreditKarma's yet-to-launch tool.) AAA directs consumers to check for recalls at the government's SaferCars.gov.

"Not knowing the tool, but getting good information in the hands of consumers when it involves their safety would be a step in the right direction," she said. Most drivers don't expect to be hit with an auto insurance rate hike after a car accident that wasn't their fault. But the DC-based Consumer Federation of America says it happens and that they found rate hikes on annual premiums as high as $400. (Feb. 13) AP

Read or Share this story: https://usat.ly/2A9BqTI