How Do You Refinance a Car Loan?

Instead of going out and purchasing a new or pre-owned vehicle, you can always opt to refinance your car loan. Refinancing your auto loan can often provide you with a lower interest rate and potentially even a lower monthly car payment. The new changes to your auto loan will allow you to enjoy your vehicle on the Fort Morgan roads for much longer while also benefiting from spending less money.

But, how do you refinance a car loan? The finance experts at Transwest Chevrolet will help you learn how to refinance a car loan so that you can spend less on your well-loved vehicle! Here are some of the questions we’ll go over today:

• How do you refinance a car loan?
• What’s the best way to refinance an auto loan?
• What do you need to know when refinancing your car loan?

What to Know When Refinancing Your Car

Before we touch on the best way to refinance your auto loan and how to refinance a car loan, there are some things you should consider first. Refinancing an auto loan comes with many advantages but it may not be right for everyone. To understand if refinancing an auto loan is right for your Holyoke lifestyle, take a look below at what you need to know when refinancing your car:

• Negative Equity: Negative equity means that your vehicle is worth less than the amount of money you owe left on your auto loan. Having a lot of negative equity often means it won’t make sense to refinance your auto loan.
• Vehicle Age: Since older vehicles have gone through a bulk of their depreciation already, it can be difficult to find a lender that’ll approve you for refinancing.
• Loan Fees: Before you apply for refinancing, check first if your current auto loan allows for early repayment or refinancing. Some contracts may have a fee so it wouldn’t make sense to refinance.

The Best Way To Refinance Your Auto Loan 

If refinancing checks off all of your boxes, the actual process to get started is pretty simple. In fact, it’s not much different than when you get financing on a vehicle purchase. With that being said, here’s how to refinance a car loan:

• Know Your Credit Score: When you purchase your vehicle, you may not have had the best credit score. However, if you’ve been making payments on time for a while, your credit score has likely increased, and refinancing may be a smart option.
• Get Refinancing Options: Apply for refinancing with multiple different lenders from Brush and beyond. Having many options can help you make a better choice. Just be sure you apply for refinancing within a 14-day period to not affect your credit score as much.
• Explore Offers: Once you’ve gotten back all of your offers, find out which option is right for your budget. Keep in mind that a longer loan term might have a lower monthly payment but you’ll be paying more interest over time. We recommend knowing the interest rate and figuring out the right numbers for your needs.

Get More Automotive Financing Advice From Transwest Chevrolet!

From refinancing to learning about car-buying tips, our experts in Sterling are here to help. Get in touch with us today and we’ll ensure you have all the information you need to make an informed decision for your automotive finances!