How to Refinance a Car Loan

Signing Finance Documents for Car
 

Sometimes your financial situation might change after you’ve purchased a new or used vehicle from a dealership near Columbus. Because of this, you might be wondering, “how do you refinance a car loan?” In most cases, refinancing your car loan lowers your monthly payment and helps you get a better interest rate. When you refinance your car loan, there are many things to consider, and we’re here to help.

Today at Celebration Kia, we’ll go over what to know when refinancing your car, the best way to refinance an auto loan, and answer, “how do you refinance a car loan?” Then feel free to explore other tips our finance experts have put together to assist with all of your automotive financing needs.

The Best Way to Refinance an Auto Loan

When you begin your research to answer, “how do you refinance a car loan?” you’ll notice that the main goal of refinancing is to achieve a lower interest rate and possibly even lower your monthly payments. We’d recommend confirming what your current monthly payments are and gathering any documentation before learning how to refinance a car loan. After confirming everything, here’s the best way to refinance an auto loan:

  • Credit Score: Before reaching out to different lenders, it’s important to know where your credit score stands. It’s likely your credit score has improved since you’ve received your loan if you’re making timely payments on your bills.
  • Check with Lenders: Shop with multiple lenders to make sure you’re receiving the best rates possible. Doing this in a 14-day period will help to minimize the impact on your credit score when credit checks are being performed.
  • Evaluate Your Offers: After checking with multiple lenders, decide which one provides you with the best rate. If you need assistance, check out our free online payment calculator to compare rates.
  • Loan Terms: Finally, one of the most important things to consider when you’re learning how to refinance a car loan is the term length. Shorter terms will have larger monthly payments but you’ll pay less interest over time. Longer terms will have smaller monthly payments, but you’ll pay more interest over time.

Truthfully, the best way to refinance your auto loan depends on your specific needs and it could vary for each Delaware car owner.

What to Know When Refinancing Your Car

What is there to know when refinancing your car? There are a couple of items to keep in mind when you’re planning on refinancing your car and here’s what they are:

  • Fees: Some car loans have penalties for paying it off early, so we recommend checking your terms and conditions before you consider refinancing.
  • Upside-Down Loan: Keep in mind that if you owe more than what your vehicle is worth, it might be tougher to refinance for better rates and terms.
  • Vehicle Age: If you drive an older vehicle, most lenders won’t refinance it, so we recommend checking with lenders first before beginning the process.

Explore Financing Options with the Experts at Celebration Kia!

Learning how to refinance your car can be confusing, so if you have any hesitations, please visit the finance experts at Celebration Kia. We’re just a short drive away from Dublin, and we’ll help you explore your financing options. As always, if you have any questions, please contact us online or work with our staff in person in Lewis Center. We can’t wait to work with you!

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