How to Refinance a Car Loan

 
For Long Island drivers interested in lowering their monthly car payments and saving on interest, refinancing their car loan may be a great option. Security Dodge Chrysler Jeep Ram has created this helpful guide on everything you should know when refinancing your car loan. Read on to learn how to refinance an auto loan, below.

The Best Way to Refinance an Auto Loan

The goal of refinancing is to lower your monthly interest rate, but you’re probably wondering, “how do you refinance a car loan?” First, you need to know what you’re currently paying. You can check these figures by reviewing your documents or contacting your lender to confirm your current interest rate and monthly payments. Once you have this information, take the following steps:

• Check Your Credit Score: If you’ve been paying all of your bills in a timely manner since you purchased your vehicle, your credit score has probably increased and refinancing could be beneficial to you.
• Start Applying for Refinancing: When you start submitting applications for refinancing, applying to multiple lenders will help ensure you get the best rate. You’ll also want to submit all applications within a 14-day period to minimize any negative impact on your credit score.
• Evaluate Offers: Take time to look over the numbers and see if any of the offers will provide you with the monthly payment you’re looking for. You can also use our online monthly payment calculator to compare offers.
• Decide on a Loan Term: Decide whether a longer or shorter term loan will work best for your situation. A shorter term loan requires larger monthly payments, but you will pay less interest in total. As for a longer term loan, the monthly payments will be smaller, but you’ll end up paying more interest in the long run.

Ultimately, the best way to refinance an auto loan is determining what works best for your circumstances, so it’s important to choose the offer that will accommodate your situation in Amityville.

What to Know When Refinancing Your Car

When deciding whether or not to refinance your car, here are a few things you should consider:

• Fees: You’ll want to check your original car loan to make sure you won’t incur any fees paying it off early. If there are fees, refinancing may not be the most cost-effective option.
• Underwater Finances: If you owe more money than your vehicle is currently worth, it can be harder to get approved for refinancing.
• Older Vehicles: Since older vehicles have experienced major value depreciation, many lenders won’t refinance them.

If you have any additional questions about what to know when refinancing your car, reach out to our finance center and our experts can help guide you through the best options for your circumstances.

Find Out More About Your Finance Options with Security Dodge Chrysler Jeep Ram

Have any more questions about how to refinance a car loan? The finance experts at Security Dodge Chrysler Jeep Ram near Massapequa are here to help! Just contact us to speak to someone today!