How to Refinance a Car Loan

Did you know there is a way to save on interest as well as lower your monthly car payments? How is this possible? You can achieve this by refinancing your car loan. At Sandy Sansing, we would be glad to explain the refinancing process so you know whether this option is right for you. Read on to learn how to refinance a car loan today.

How Do You Refinance a Car Loan?

Many Pensacola and Daphne drivers opt to refinance for a lower monthly interest rate. Before you can decide to refinance, you will need to know the amount you are currently paying in interest. Take a look at the financing documents that you have or ask your lender directly. When you know your current interest rate, you can then move on to the steps below:

  • Check Your Credit Score: By making on-time payments for all of your bills, your credit score should increase. If you have been consistently paying your bills on time since you took out the initial loan on your car, it is likely that your credit score has experienced a boost. If that is the case, you may be a good candidate for refinancing.
  • Begin the Application Process: Apply to several automotive refinance companies to ensure you get the best rate. Keep in mind that if you want to minimize the negative impact on your credit score, complete all of your applications within a 14-day timeframe.
  • Consider All of Your Offers: Ensure that the offers you get meet the amount you are looking to pay each month. If you like, compare offers with our payment calculator.
  • Decide on the Right Loan Term: If you opt for a shorter-term loan, expect to pay more each month, but less in interest over time. If you choose a long term loan, you will have more affordable monthly payments, but you will be charged more in interest.

Determine which option is best for your budget before making a final decision.

What to Know When Refinancing Your Car

If you are still undecided about refinancing, there are a few factors to keep in mind.

  • Fees: You may be charged to pay off your loan early depending on the terms of your original loan. If so, refinancing may not be worth it.
  • Underwater Finances: Do you owe more on your vehicle than its current value? Approval for refinancing may be a challenge.
  • Older Vehicles: If you drive a vehicle that is several years old and has depreciated significantly, you may not be able to refinance the loan.

If you find yourself in any of these situations, don’t worry. Speak to our finance experts, and we can help you figure out the best course of action.

Sandy Sansing Makes Financing Hassle-Free

If you have questions about refinancing, the best place to get a car loan, or the automotive financing process in general, do not hesitate to reach out to the experts at Sandy Sansing. We would be glad to assist you. Looking to learn how to calculate the interest rate on your car loan? Let the team here at Sandy Sansing help you learn! Want to learn more about secured auto loans or paying off your car loan early? Our team can guide you!

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