How to Refinance a Car Loan

Couple buying a car

Are you looking for a way to save on your car payments and lower your interest rate in Phoenix? Then it may be time to refinance your car loan! Follow along with Cactus Jack's Auto as we discuss the ins and outs of refinancing so you’re ready to get the best rate possible when you visit the dealership. Read on to learn more, but if you have specific questions, feel free to contact us!

How Do You Refinance a Car Loan?

When you refinance a car loan in Mesa, your goal is to lower the interest rate you’re being charged each month. In order to do that, you need to know what you’re currently paying. Review your documents or contact your lender to confirm your current interest rate and monthly payments. Once you have that information, you can follow these steps:

  • Check Your Credit Score: If you’ve been paying your bills on time since your vehicle purchase, your credit score may have improved and you could benefit from refinancing.
  • Start Applying: Apply to a few automotive refinance companies in Surprise to ensure you get the best rate. Make sure you submit all applications within a 14 day period to minimize a negative impact on your credit score.
  • Evaluate Offers: Take time to review your offers to make sure you will get the monthly payment you are looking for.
  • Decide Loan Term: Decide if a longer or shorter term loan fits best fits your situation. A shorter term loan will require larger monthly payments, but you will pay less interest in total. With a longer-term loan, your monthly payments will be smaller, but you will pay more in interest in the end.

The best way to refinance your auto loan depends on your circumstances, make sure that any offer or term you choose will help you financially.

What to Know When Refinancing Your Car

If you’re deciding on whether or not to refinance your car, there are a few things you should keep in mind:

  • Fees: Check your original car loan to make sure there aren’t any fees associated with paying it off early. If there are, refinancing may not be cost effective.
  • Underwater Finances: If you owe much more than your vehicle’s current worth, it can be harder to get approved for refinancing.
  • Older Vehicles: Many lenders in Glendale won’t refinance an older car that has already experienced major depreciation.

If you find yourself in any of these situations, contact the finance center at Cactus Jack's Auto. Our experts can give you advice and guide you to options that fit your circumstances.

Learn About Your Financing Options at Cactus Jack's Auto

At Cactus Jack's Auto, we want to help you find the car you want at a price you’ll love. Our financial experts will help find a plan that’s tailored to your needs. Stop in today and speak with our friendly staff to learn more about refinancing your car loan! We can even help you learn more about what to do if you can’t make your car loan. If you’re looking for a new car, be sure to read our car buying tips and browse our weekly specials too!

Cactus Jack's Auto 33.5101018, -112.1115231.