How to Refinance a Car Loan

If you are looking to lower your monthly car payments and save on interest you may want to consider refinancing your loan. How do you refinance a car loan? This guide from the finance team at Land Rover Englewood will explain the best way to refinance an auto loan and fill you in on what to know when refinancing your car. If you have any questions or are ready to refinance, please feel free to contact us.

How Do You Refinance a Car Loan?

The primary benefit of refinancing is lowering the interest rate you are required to pay each month. The first thing to do when looking for the best way to refinance an auto loan is to review your current loan or contact your lender to confirm exactly what your current interest rate and monthly payment is. With that information, you should then follow the steps listed below:

• Check Your Credit Score: If you are up to date with all of your scheduled payments and have been paying all your bills on time, your credit score will have most likely improved and refinancing could be right for you. 
• Start Applying: It is recommended that you apply for refinancing with several lenders to ensure you get the best rate possible. It is important that you submit all applications within a 14 day period to avoid a negative impact on your credit score.
• Evaluate Offers: Make sure to run the numbers to confirm that any new offers you receive will give you the monthly payment you are looking for. 
• Decide Loan Term: A short-term loan will require larger monthly payments, but you will pay less interest in total. With a long-term loan, your monthly payments will be smaller, but you will pay more in interest in the end. 

The best way to refinance an auto loan is to take your time, factoring in your budget and personal finances to make sure that the loan term and interest rate you are offered works for your situation. 

What to Know When Refinancing Your Car

Is refinancing right for me? Here’s what to know when refinancing your car:

• Fees or Penalties: Make sure that your original car loan doesn’t include any fees or penalties associated with paying it off early. Refinancing may not be a cost-effective option if the fees are too high. 
• Underwater Finances: Being underwater on a loan means that you owe more than your vehicle is currently worth. If this is the case, it can be more difficult to get approved for refinancing. 
• Older Vehicles: An older car that has experienced major depreciation is usually not eligible for refinancing with many Fort Lee-area lenders. 

Explore Your Financing Options at Land Rover Englewood

Knowing how to refinance a car loan can help drivers from throughout the Jersey City and New York City area save money on their monthly auto payments. The finance experts at our dealership in Englewood can work with you to ensure that you get the best deal possible when refinancing an auto loan. For your convenience you can apply for financing with us online to get pre-approved today. If you want to learn more about your refinancing options, please don’t hesitate to give us a call at (201) 987-5437.