Refinance Used Car Loan

Used auto refinancing can save you money. You've already done the research, you've already gone to the dealership, and you've already purchased your used car. You were approved gotten the financing, but were the loan terms the best you could get? It's difficult to know if you're getting the absolute best deal at any time, but if you think you can do better, there are options available for you.

If your used car is under 5 years old and has less than about 70,000 miles, you might want to consider refinancing your loan if you aren't happy with your current financing arrangement.

Lower Interest Rate

In many cases, used cars can be refinanced for the purpose or lowering the interest rate or decreasing the amount of your monthly payment. If you still have over two years to pay on your current used car loan refinancing could get you a lower interest rate, should you qualify.

If some time has passed since you closed on your current auto loan, your credit rating may have improved. Have you paid all your credit card payments, bills, and other recurring debts on time since you bought your car? Has your income increased in any way? Have you significantly paid down any credit card or loan balances? If any of these are the case, you certainly have the chance to lower your auto loan interest rate, potentially saving you a lot of money over the life of the loan. A lower interest rate can even bring down your monthly payment.

Lower Car Payments

If you aren't concerned with your interest rate, but you would like to have a lower monthly payment, refinancing could help there too. While there is a chance your interest rate will stay the same or even increase slightly (depending on your credit rating and overall financial situation), your montly payments can be lowered by stretching the overall term of your loan. For instance, if you bought your car with a 5 year loan, and you've paid on it for 1 year, you can probably refinance to reduce your monthly payment but your loan term could increase, even back up to 5 years.

If you consider your car to be in good shape and you think it will still be a good car in a few years, refinancing could work for you and lower your payment. Be advised that while this will cost you less on a month-to-month basis, the overall price paid for your car will be more in the end since you've lengthened the life of the loan from its original term before refinancing.

If you don't think you're getting the most out of your current vehicle financing, contact us today by filling out our hassle-free online form.