Most Americans get a car loan to drive the car, truck, or SUV of their dreams. If you make payments on time for a year or two into your loan, you might want to know how to refinance a car loan to try to get a lower interest rate for the remainder of the loan. You could pay a lower monthly amount while improving your credit rating in Mesa.
First, we give you the best way to refinance your auto loan. That way, you’ll know how to refinance a car loan correctly before you ask questions.
Have you been making your auto loan payments on time? If so, that’s a good thing because that is the best way to refinance an auto loan. Your lender will see that you’ve made payments on time and in full for a year or two, meaning you’re in good standing with the lender.
After refinancing, you can have a chance to save money with a lower car payment, which is the point of refinancing. Once a year, you get a free credit report from the three credit bureaus. Get a copy of this if it’s been more than a year since you got your original auto loan. If there are any positive changes, you’re in a better position to refinance for your family in Surprise.
Apply for financing with your dealership, like the team at Cactus Jack's Auto in Glendale. We will go to bat for you with auto lenders, many of which we have long-standing relationships with.
Submit all auto loan applications within a 14-day period. Applying for loans too many times can negatively impact your credit score. We want you to know how to refinance a car loan the right way for the best results and without causing a negative situation to arise.
Look over the refinancing offers coming back to you and find out which one gives you the best deal. Remember, the goal is to get a lower payment and possibly pay off the remainder of the loan sooner. Crunch some numbers with our payment calculator to do some quick math. These numbers can give you an idea of what to expect when you refinance and what goal to shoot for.
Do you want a shorter or longer term for your auto loan? A shorter term, anywhere from one to three years, means you’ll have larger payments but less cumulative interest after paying it off. With a longer term loan, your monthly payments will be smaller but you will pay more in interest overall. The longer you have a loan, the more overall interest you will pay.
The best way to refinance an auto loan is based on your current situation and financial goals. Not all offers may be exactly what you want. However, the goal is to have lower monthly payments while building your credit.
Remember these tips when deciding whether or not to refinance your auto loan:
Do you still have questions about refinancing an auto loan? Our auto finance team is happy to answer your questions. If you need an upgraded ride, we can schedule a test drive in Phoenix, too. Contact us or call (602) 443-5225 to start the process.