How to Refinance a Car Loan

How Do You Refinance a Car Loan?

Manhasset drivers who are looking to refinance their auto loan are doing so in hopes of lowering the interest rate that they’re being charged each month. If you fall within this category, you’ll need to know how much you’re currently paying–you can find this amount on your monthly statements or you can contact your lender to confirm your interest rate and monthly payment amount. Once you’ve obtained that information, follow these steps:

• Verify Your Credit Score: Bayside car owners who’ve been paying all of their bills on time since the purchase of their vehicle have likely improved their credit score and could benefit from refinancing.
• Apply for Financing: It’s best to apply to multiple automotive refinance companies to make sure that you secure the best rate. You’ll want to submit all of the applications within 14 days to minimize the negative impact on your credit score.
• Evaluate the Offers: Crunch the numbers to make sure that any new offers you receive will secure you the monthly payment that you desire. You can use our online monthly payment calculator to compare offers.
• Decide on a Loan Term: Decide if a longer or shorter loan term best fits your financial situation. While a shorter loan term requires larger monthly payments, you’ll pay less in interest. On the other hand, a longer-term loan will have smaller monthly payments but more interest in the end.

Ultimately, the best way to refinance an auto loan depends on your financial circumstances, so be sure to find a term or offer that works for your situation.

What to Know When Refinancing Your Car

There are a few things that Flushing commuters should keep in mind when deciding whether or not to refinance their car:

• Fees: Make sure that your lender doesn’t have any fees for paying off your car loan early. If there are any, then refinancing may not be cost-effective.
• Underwater Finances: If you owe more on your car loan than what the vehicle is worth, it can be harder to get approved for refinancing.
• Older Vehicles: Many lenders won’t refinance an older car that has already undergone a bulk of its depreciation.

Learn About Your Financing Options at North Bay GMC

If you still have questions about the best way to refinance an auto loan, reach out to North Bay GMC today. Our finance center experts are always available to provide customers from Roslyn to Great Neck with top-tier guidance. Or in the meantime, be sure to check out our car buying tips where you can learn everything from the difference between buying vs. leasing to what MSRP means.