How to Refinance a Car Loan

Have you heard that refinancing an auto loan can save you money but are wondering: how do you refinance a car loan? Follow along with Scottsdale Maserati as we walk you through the details of how to refinance a car loan so you can travel around Paradise Valley in a vehicle that suits your budget. If you are looking to lower your car payments and save on interest, then this money-saving method might be the one for you.

The Best Ways to Refinance an Auto Loan

The purpose of refinancing a car loan is to lower the interest rate you are being charged for every month. In turn, you need to review your paperwork or contact your lender to confirm two things: how much your current interest rate is and how much your monthly payments are. Once you know how much you’re currently paying, follow the steps below:

• Check Your Credit Score: Having a strong credit score means that you could reap all of the benefits from refinancing.
• Begin Applying for Refinancing Loans: You’ll want to apply to several automotive refinance companies to be able to compare rates and make sure you get the best one. It’s important to note that you should submit all of your applications within a 14-day period to lessen the negative impact on your credit score. 
• Evaluate Received Offers: Carefully review each offer you receive to ensure that you’re getting the monthly payment that you want. Use our online monthly payment calculator to help you compare offers. 
• Decide on a Long-Term or Short-Term Loan: Figure out whether a long-term or short-term loan is the best for you. Short-term loans require larger monthly payments, but the interest total will decrease. Longer-term loans will require smaller monthly payments, but you will end up paying more interest. 

When deciding on the best way to refinance an auto loan, it’s important to evaluate your circumstances and what will work best for your budget.

What to Know When Refinancing Your Car

Here are a few additional things to keep in mind when refinancing your car:

• Early Pay-Off Fees: Before refinancing your vehicle, you’ll want to make sure you won’t incur any fees for paying off your original car loan early. If there are fees, refinancing might not be the most cost-effective option.
• Underwater Finances: It might be harder to get approved for refinancing if you owe more on the vehicle than it’s currently worth.
• Value Depreciation: The older a vehicle gets, the more its value is depreciated. As a result, many lenders tend not to refinance older cars. 

If you encounter any of these issues during the refinancing process, contact the finance center at Scottsdale Maserati and our experts will advise you on better options to choose from.

Discover Additional Finance Options with Scottsdale Maserati

Now that you know how to refinance a car loan, contact us if you have any additional questions about this process. Our finance experts are committed to helping Chandler drivers make the best financial decisions possible.