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How to Refinance a Car Loan

Refinance Car Loan

 

How do you refinance a car loan in Lima or Toledo? Or rather, what’s the best way to refinance an auto loan to save big every month? The process of refinancing allows you to get a better interest rate on your car payments, which means that you pay less over the duration of your loan. But, there are a few things to keep in mind before you take the leap. In this guide, we’ll walk through common questions like:

  • How do you refinance a car loan?
  • What’s the best way to refinance my auto loan?
  • Is it a good or bad time for me to refinance my loan?

 

 

How Do You Refinance a Car Loan?

The best way to refinance your auto loan in Findlay is to focus on lowering the interest rate. To do this, you’ll need to gather some information. Grab your latest statements or call up your lender to find out what you pay every month, which should include your current balance and interest rate. Once you have that established, follow these steps:

  • Check Your Credit Score: Do you know your current credit score? Many drivers are surprised to learn that their credit scores soar after a year or two of prompt car payments. And if your credit score is higher than it was the first time you applied, you’ll likely qualify for much better interest rates this time around.
  • Start Applying: Apply to a few different refinancing companies. This allows you to choose from the best rates possible, so you don’t miss out on any good offers. Just be sure to submit your applications within a 14-day period, or you risk negative marks on your credit score.
  • Evaluate Offers: Be sure to look over each offer thoroughly, and don’t just accept the very first one that you get. Use our monthly payment calculator to compare figures quickly.
  • Decide Loan Term: Do you want a longer or shorter loan term? This is largely a matter of preference. Longer terms mean smaller monthly payments, but shorter loans mean less interest paid overall.

What to Know When Refinancing Your Car

Now you know how to refinance a car under ideal circumstances, but what if your financial situation is a little more complicated? Here’s what to know when refinancing your car:

  • Fees: When you refinance a loan, there’s a good chance that you’ll finish making payments ahead of schedule. Be sure to check with your lender to make sure there’s no penalty fees for paying off your loan early, and if there are, make sure refinancing is still worth it.
  • Underwater Finances: When you owe more on your vehicle than it is currently worth, it’s called being underwater or upside-down on your loan. This makes it harder to get a refinancing deal from a lender.
  • Older Vehicles: When a vehicle has already experienced a great deal of depreciation, many refinance companies are hesitant – especially when the value is low.
  • Used Cars: Refinancing a used car is generally not a problem. However, if your car is in poor condition or you only have a few payments left, you might find it difficult to get approval.

If any of these scenarios sound familiar, no need to worry. Just get in contact with us at Exceptional Motorcar for more information. We’ll be happy to walk you through your options in depth.

Discover Your Financing Options at Exceptional Motorcar

We’ve gone over what to know when refinancing your car, but don’t be afraid to ask more questions at Exceptional Motorcar! Contact us to learn more about what we can do for you in Defiance, or stop by to chat in person.

 

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