How to Refinance a Car Loan

If you’re looking for ways to pay less each month on your auto loan that doesn’t damage your credit, you should investigate the best way to refinance an auto loan. Doing so can lower your monthly payments and keep you from having to pay as much interest on the loan. Find out more about how to refinance a car loan with the finance team at Warner Robins Chrysler Dodge Jeep Ram FIAT.

How Do You Refinance a Car Loan?

There’s no one best way to refinance an auto loan. It’s going to depend on multiple factors, but here’s the general way to refinance a car loan:

• Check Your Credit Score: If you’ve been paying all your bills on time since you purchased your vehicle, your credit score has likely gone up. This can qualify you for a better loan rate. Check your credit report to see how your score has changed and if any errors on your credit report need to be corrected.
• Start Applying: Apply to several automotive refinance companies to ensure you get the best rate. Make sure you submit all applications within the same 14-day period to minimize the negative impact on your credit score.
• Evaluate Offers: Take time to run the numbers to make sure any new offers coming back will get you the monthly payment you are looking for. Use our online monthly payment calculator to help you compare offers.
• Decide Loan Term: Decide if a longer or shorter-term loan best fits your situation. A shorter-term loan will require larger monthly payments, but you will pay less interest in total. With a longer-term loan, your monthly payments will be smaller, but you will pay more in interest in the end.

Make sure the offers and loan terms work for you and your budget before you commit to refinancing your car loan in Bonaire. Refinancing should always leave you in a better financial situation.

What to Know When Refinancing Your Car

There are a few other things to know when refinancing your car. Some of the most important ones are:

• Fees: Check your original loan agreement to ensure that you won’t be charged any fees for refinancing your car.
• Underwater Finances: If you owe more than your vehicle’s worth, it can be harder to get approved for refinancing. Refinancing at this time generally isn’t a good idea.
• Older Vehicles: Many lenders won’t refinance an older car that has already experienced major depreciation.

If you’re unsure about where you stand on any of these points, contact our finance department. One of our finance professionals will gladly help you come to a decision that fits your budget.

Learn About Your Financing Options at Warner Robins Chrysler Dodge Jeep Ram FIAT

You know the best way to refinance an auto loan with Warner Robins Chrysler Dodge Jeep Ram FIAT. If you’d like to learn about other automotive financing issues, like how to sell us your car, just contact us! Our team is here to help you get the best price and interest rate possible.