How to Refinance a Car Loan

If you’re looking to lower the interest rate on your loan, and you’ve been making reliable payments for the past two years, you’re a good candidate for refinancing. When you refinance a loan, you obtain another loan with better terms from another lender, and use the money to pay off the old loan with worse terms. But how do you refinance an auto loan? And what do Grand Prairie drivers need to know when refinancing their car. Read on to learn about the best way to refinance an auto loan with Southview Acura, and then apply for financing for help from our Acura financial experts!

How Do You Refinance a Car Loan?

The best way for Fort McMurray drivers to refinance an auto loan is to make sure it’s the right strategy for them. If you’ve been reliably paying off your pre-existing loan for more than two years, and you suspect your credit score has improved, you’re a good candidate. If that sounds like you, read these steps on what you need to know when refinancing a car loan:

• Check Credit Rating: Check your credit score to see if it’s risen over the past two years.
• Apply to Several Lenders: Apply to multiple lenders around Fort McMurray, and then leverage the quotes you receive against one another to bargain for the lowest interest rate. Make sure to submit applications in one 14-day stretch so that you don’t hurt your credit score.
• Reconsider Loan Term: You can bargain for a lower interest rate if you reduce the number of months you have to pay off your loan.

What to Know When Refinancing Your Car

Now that we’ve answered the question, “How do you refinance a car loan?” let’s take a look at some important things to keep in mind when following our steps on how to refinance a car loan:

• Underwater Finances: If you owe more than your vehicle is worth, you’ll have a hard time finding another lender.
• Old Model: Some lenders are hesitant to refinance old models that have undergone the bulk of their depreciation.
• Fees: Some loan agreements will charge you for paying your loan off early. Double-check your contract to make sure it’s still cost-effective to refinance.

Have More Questions About How to Refinance a Car Loan?

Now that you’re more familiar with the best ways to refinance an auto loan and what to know when refinancing your car, if you have more questions, call Southview Acura at 833-433-1971. We offer some of the most competitive rates in greater %%target_city_3%. If you have more questions about car buying, you can also explore our Acura finance tips for more information about how to buy a new car, how much is gap insurance, and how to pay off a car loan early! If you’re looking to sell your car, we want to buy it! Stop by so we can tell you more about how to sell your car to a dealership.