How Do You Refinance a Car Loan?

Hands Doing Calculations with Calculator

 

Want to lower your monthly payments and save big on interest? Then refinancing your car loan can help you achieve those goals. How do you refinance a car loan? The finance team at Serra Volkswagen of Traverse City is here to walk you through the process from start to finish, so you can find out not just how to refinance a car loan – but the best way to refinance your car loan! Read on with us to get started. 

Best Way to Refinance an Auto Loan

The best way to refinance your auto loan is to focus on lowering your interest rate. But before you can do that, you’ll need to refresh yourself on the terms of your current car loan. You can either peruse your financial documents or just call up your lender. Find out your current interest rate and monthly payments, and then get started.

  • Check Your Credit Score: Have you been paying off your bills promptly since starting your loan? There’s a good chance your credit score has gone up, which can benefit you during the refinancing process.
  • Start Applying: Apply strategically to several refinance companies around Bellaire to see which gives you the best rate. Submit all applications within a two-week time period to minimize any negative marks on your credit score.
  • Evaluate Offers: Once you’ve got the offers in hand, it’s time to crunch numbers. Use our monthly payment calculator to compare the terms of each offer.
  • Decide Loan Term: Shorter loan terms result in larger monthly payments and less total interest. Longer loan terms result in smaller monthly payments and more total interest. There’s no right or wrong decision, so pick the option that suits your needs in Kalkaska the best.

What to Know When Refinancing Your Car

Now that we’ve gone over the basics of how to refinance a car loan, you have a good road map of the steps you’ll need to take to get the best result possible. However, here are a few tips on what to know when refinancing your car around Lake City:

  • Fees: Check your original car loan to see if there are any fees or penalties for paying off your car loan early. If so, factor those into your budget to see if refinancing is still worthwhile.
  • Underwater Finances: If you currently owe more than your car is worth, this makes the refinancing process more difficult. Think about speaking with our auto financing experts to see what your best options are. 
  • Older Vehicles: If your car is older, it has already experienced significant depreciation. This can also make it difficult for lenders to approve your refinancing. 

Find Out How to Refinance a Car Loan with Serra Volkswagen of Traverse City

So, how do you refinance a car loan in Traverse City? Get personalized financial advice from the team at Serra Volkswagen of Traverse City, and feel free to contact us with your questions. We look forward to helping you save money on your car!

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