Refinancing a car does sound quite easy. Just sort out the paperwork and get back home with an amazing deal. The market is known to reduce interest rates by 1% on an average in most of the refinancing mortgage deals for cars. However, there are some hidden costs in the whole process, which can often create additional financial hassles for you. So, don’t get carried away with great promotions just yet, because the bargain can get better. Just read through the following points and if you are convinced that you have been cautious enough, you should indeed be proud of yourself! Administrative fees Some of the auto refinancing companies might charge you with administrative fees. You should definitely be aware about such hidden costs as they can often be expensive. Always try to negotiate on such fees, if your refinancing deal is good enough. Insurance premium Insurance premiums can vary depending upon your location, your driving record and the type of car you are insuring. Sometimes the charges fluctuate even if your car has a certain kind of engine. Make sure that you research about the various insurance costs online before you opt for refinancing. Extras No auto refinance company has a right to buy extras such as GAP Insurance in order to qualify you.