How Do You Refinance a Car Loan?

 
Are you are looking to lower the monthly payments on your vehicle? Refinancing the loan on your vehicle may be your best bet. The team at Westbrook Honda covers what to know when refinancing your car – all the ins and outs of refinancing, so you’re armed with all the information you need when it comes to refinancing. Keep reading to learn the best way to refinance auto loans in the Branford area!

How Do You Refinance a Car Loan: Step by Step

Refinancing helps you lower your interest rates. So, in order to refinance you’ll need to know what you are paying at the moment. You can do that by reviewing your documents or contacting your lender to get an exact number for your current interest rate and monthly payments. After getting that information:

• Confirm Your Credit Score: If you’ve been staying on top of your current payments, there is a good chance your credit score has improved and you could benefit from refinancing.
• Start Applying for Refinancing: Apply to a variety of automotive refinance companies so you can be sure you are getting the best rate. You’ll want to submit all applications within a 14 day period so you minimize the negative impact on your credit score.
• Evaluate Your Offers: Run the numbers of your offers and make sure any new offers coming back will get you the monthly payment you’d like. Use our online monthly payment calculator to help you compare offers.
• Choose a Loan Term: You’ll need to decide if you want a longer or shorter term loan that best fits your situation. A shorter term loan will require larger monthly payments, but you will pay less interest in total, and a longer-term loan, your monthly payments will be smaller, but you will pay more in interest in the end.

What to Know When Refinancing Your Car in Middletown

When you are finding the best way to refinance your car, you’ll want to consider these additional tips:

• Fees: Check to be sure there aren’t any fees associated with paying off your car loan early. If there are, refinancing may not be cost-effective for you in New London.
• Underwater Finances: If you owe much more than your vehicle’s currently worth, you may have a harder time getting approved for refinancing.
• Older Vehicles: Usually lenders won’t refinance an older car that has already experienced major depreciation.

If you are in any of these situations, contact the finance center at Westbrook Honda to get advice and guidance on how to adjust to your circumstances.

Explore Your Financing Options at Westbrook Honda

After exploring what to know when refinancing your car in New Haven, we hope you know the best way to refinance auto loans. If you still have additional questions, contact us to speak with an export today!