How to Refinance a Car Loan

Tiny car with insurance documents

Drivers in Waterford can lower their monthly payments and save on interest in their current car financing when they know how to refinance a car loan or buy a car out of state. Refinancing your car loan allows you to lower the interest rate you pay each month. There are several steps to take to begin the car refinancing process and ensure you’re getting the lowest offer. Learn the best way to refinance an auto loan with the finance experts at Old Saybrook Hyundai. Then, explore our other financing and car buying tips!

How Do You Refinance a Car Loan?

You might be asking, “How do you refinance a car loan?” The first step is to know exactly what you pay each month in Madison, including the interest rate. Contact your lender if you’re not sure what the percentage is. Then, read on to learn the best way to refinance your auto loan:

  • Credit Score Improved?: Has your credit score gone up since purchasing your car? If you have been paying all your bills on time, it is more than likely your credit score has risen and you could benefit from refinancing.
  • Start Applying: Within a 14 day period to minimize the negative impact on your credit score, apply to several automotive refinance companies so you have choices.
  • Evaluate Offers: With our online payment calculator, run the numbers of all the offers that you’re evaluating. Take your time and don’t feel pressured to commit to one immediately.
  • Longer or Shorter Loan Term: A shorter-term loan means larger monthly payments, but less interest. A longer-term loan means smaller monthly payments, but more interest. Decide which is best for your financial situation.

What to Know When Refinancing Your Car

When taking this step in Branford, there are a few things to consider. What to know when refinancing your car includes:

  • Fees: Double-check your original car loan to ensure there aren’t any early payoff fees. If so, refinancing might not be worth it.
  • Underwater Finances: Unfortunately, if you owe more than the cash value of the car, it will be much more difficult to be approved for refinancing.
  • Older Vehicles: If your vehicle has major depreciation, many lenders will not refinance.
Tiny car with calculator

Learn About Your Financing Options at Old Saybrook Hyundai

If you have any questions about how to refinance a car loan or what auto insurance covers, don’t hesitate to reach out to us at Old Saybrook Hyundai. Our finance experts can help you determine if refinancing is a good option for you. Visit us in Old Saybrook or contact our finance center today! We’re here to help, even if you need help because you can’t make your car payment.

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