How to Refinance a Car Loan

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Are you looking for ways to save more on your monthly car payments? Refinancing your car loan may be the best option for you. Our finance experts at South Point Hyundai can cover the ins and outs of refinancing with you before you make a decision. Read more about how to refinance a car loan with ourfinance team today!

How Do You Refinance a Car Loan?

When you refinance a car loan, you’re essentially doing so to lower the interest rate. This means you need to first know what you’re paying. Look over your documents or contact your lender to find out what your current interest rate and monthly payments are. Once you have that information, follow these steps:

  • Check Your Credit Score: If you have been paying all your bills on time since your vehicle was purchased, there is a good chance your credit score has improved and you could benefit from refinancing.
  • Start Applying: Apply to several automotive refinance companies to ensure you get the best rate. Make sure you submit all applications within a 14 day period to minimize the negative impact on your credit score.
  • Evaluate Offers: Take time to run the numbers to make sure any new offers coming back will get you the monthly payment you are looking for. Use our online monthly payment calculator to help you compare offers.
  • Decide Loan Term: Decide if 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. With a longer-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 depends on your circumstances. Make sure that the new offers or terms fit what you are looking for.

What to Know When Refinancing Your Car

When making the decision whether or not to refinance your car, there are a few other things you’ll want to keep in mind. These include:

  • Fees: You will want to check your original car loan to make sure there aren’t any fees associated with paying it off early. If there are, refinancing may not be cost-effective.
  • Underwater Finances: If you owe much more than your vehicle’s currently worth, it can be harder to get approved for refinancing.
  • Older Vehicles: Many lenders won’t refinance an older car that has already experienced major depreciation.

If you find yourself in any of these situations, contact the finance center at South Point Hyundai. Our experts can give you advice and guide you to options that better fit your circumstances.

Learn About Your Financing Options at South Point Hyundai

Ready to learn more or get the refinancing process started? Contact our team of experts today. We look forward to working with you so you can save more on your monthly payments.

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