How To Refinance a Car Loan

Refinance
 

There are plenty of advantages to refinancing a car loan. When you refinance your car loan, you’re essentially getting new loan terms which could result in a lower monthly car payment or a lower interest rate. There are some nuances to refinancing a car loan that you’ll want to keep in mind.

 

 

Refinancing a car loan isn’t right for every Scranton lifestyle but if you’re interested, we can help you take a closer look at Bergey's VW of Wilkes-Barre. Learn how to refinance a car loan today with our finance experts! Here’s what we’ll be going over:

  • How do you refinance a car loan?
  • What’s the best way to refinance an auto loan?
  • What do you need to know when refinancing your car?

What’s the Best Way To Refinance an Auto Loan?

So, how do you refinance a car loan? There are several steps you’ll want to take to ensure that your refinancing experience is smooth and seamless. As we mentioned, refinancing isn’t ideal for every Lehighton driver but for others, it can be a good option. If you’ve determined that you’re ready to explore refinancing, here’s the best way to refinance an auto loan:

  • Check Your Credit Score: Go over your credit score and ensure it has improved before you begin. If you’ve been paying all of your debts on time, it’s likely that your credit score has improved enough to make it worth your while to refinance.
  • Reach Out To Your Lender: You’ll want to start by reaching out to your lender to confirm that you can in fact refinance. Most lenders will allow it but not all.
  • Apply for Financing: Apply for financing with various lenders near Bloomsburg within 14 days to minimize the impact on your credit score and ensure you’re getting the best rate possible. When you apply for financing with our team, we’ll work with various lenders to ensure you’re getting a good rate.
  • Compare Loan Terms: Once you’ve received all of your refinancing offers, compare the different loan terms to ensure they fit your needs. Keep in mind that shorter terms may have a higher monthly payment but will result in you paying less interest over time.

What Do You Need To Know When Refinancing Your Car?

Now that we’ve answered the question, “How do you refinance a car?” you may be wondering, “What do I need to know when refinancing my car?” and we’re here to help! In some instances, it won’t make sense to refinance your car due to a number of factors. Some of those factors include:

  • Fees: Some lenders charge a fee to refinance your car loan or pay off your car loan early. In this instance, it may not be worth it to pay off your car loan early.
  • Negative Equity: If you have negative equity, you owe more on your loan than your vehicle is worth. It may be difficult to get approval if you have negative equity.
  • Vehicle Age: Because of depreciation, many lenders won’t refinance an older vehicle so keep this in mind when you’re applying.

We’ve Got the Details On How To Refinance a Car Loan at Bergey's VW of Wilkes-Barre!

If you’re not sure where to begin with refinancing your vehicle, our Larksville finance experts have your back. Let us know how we can help you today!


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