How to Refinance a Car Loan

How to Refinance a Car Loan

Are you looking to lower your monthly auto loan payments to save on interest? Refinancing your car loan near Logan at Truck Ranch may be the best option for you. We’re covering the ins and out of refinancing to ensure you have all of the information needed. Learn more, then give our team a call with any questions.

How Do You Refinance a Car Loan?

Refinancing is meant to lower the interest rate that you’re getting charged each month. You’ll need to know what you’re currently paying. Take a look at your documents or contact your lender to confirm your interest rate and monthly payments. With the information handed, follow the steps below:

• Check Your Credit Score: With on-time monthly payments, you’ve likely improved your credit score, and you could benefit from refinancing.
• Start Applying: Apply to several automotive refinance companies to ensure you’re getting the best rate possible. Submit all applications within 14 days to reduce the chances of negatively impacting your credit score.
• Evaluate Offers: Take time to run the numbers to make sure you’ll get the monthly payment you’re looking for. Use our online monthly payment calculator to help you compare offers. 
• Decide Loan Term: Decide whether a longer or shorter-term loan is better for you. A shorter-term loan requires larger monthly payments, but you will pay less interest in total. With a longer-term loan, your monthly payments will be less, but you will pay more in interest. 

What to Know When Refinancing Your Car

There are a few factors to consider when choosing whether or not to refinance your car:

• Fees: Check your original car loan to make sure there aren’t any fees associated with paying it off early. If there are, refinancing may not be cost-effective. 
• Underwater Finances: If you owe much more than what your vehicle’s currently worth, it may be more difficult to get approved for refinancing. 
• Older Vehicles: Many lenders won’t refinance an older car that’s already experienced major depreciation. 

Are you in any one of these situations? Contact our finance center at Truck Ranch. Our financial experts will give you advice and guide you to the option that’s best suited for you.

Get Additional Financing Tips at Truck Ranch

Our financial experts are standing by to share helpful car-buying and financial tips like how to refinance a car loan. Don’t hesitate to give us a call to speak with someone from our finance team today.