Over time, your financial situation can change and it may be a good idea to refinance your auto loan. In many cases, refinancing your auto loan can lower your monthly payment and more importantly, your interest rate. However, we understand that some vehicle owners may not be aware of how to refinance a car loan. So, how do you refinance a car loan? The finance experts from Garden Grove Nissan are here to answer that question and touch on what you need to know when refinancing your car loan!
Things To Keep in Mind When Refinancing a Car Loan
Before we answer, “How do you refinance a car loan?” it’s important that you understand that refinances aren’t always perfect. Meaning, depending on your exact Santa Ana lifestyle, there may not be one singular best way to refinance your auto loan. Additionally, refinancing isn’t for everyone. With that being said, here’s what you need to know when refinancing your car loan:
- Added Fees: Reference your original loan contract. Some contracts may have added fees if you opt to refinance.
- Upside-Down: Being “upside-down” on your auto loan means that you have negative equity. This happens when your vehicle’s value is worth less than the amount of money you owe on your auto loan. If this is the case, refinancing may not be worth the hassle. Check your vehicle’s trade-in value today with our trade-in tool.
- Older Model Year: Some lenders won’t refinance your vehicle if it’s too old. Instead of driving all around Anaheim to different lenders, we suggest calling first and making sure that they can refinance your vehicle.
If your vehicle isn’t eligible for refinancing, you can always count on our finance experts to help you explore your options.
How To Refinance a Car Loan?
Our team often gets asked, “How do you refinance a car loan?” So, we’re here to set the facts straight. The most important thing is you’ll want to review all of your information and ensure that refinancing is right for your budget. If you’ve determined that refinancing your Orange County daily driver works for your needs, continue on reading. Here’s how to refinance a car loan:
- Know your credit score. Your credit score has likely changed since your first got your vehicle loan. In fact, it may have even improved if you’ve been paying bills on time and haven’t missed any payments.
- Apply for refinancing at various different lenders. This can help you get the best possible rate. Just make sure you submit your applications within a 14 day period to help decrease the impact on your credit score.
- Determine which offer is best for your budget. Keep in mind the interest rates, and monthly payments.
- Loan terms are also something you should consider. Shorter terms will likely have a higher monthly car payment but you’ll be paying less interest overall.
- Make a final decision and sign the dotted line!
Looking for the Best Way To Refinance an Auto Loan? Visit Garden Grove Nissan!
Truthfully, the best way to refinance an auto loan is by finding one that works best for your needs. If you’re not sure where to begin, you can stop by our GARDEN GROVE finance center and our experts can assist. We look forward to working with you at Garden Grove Nissan and help you get the best possible rates and terms. If you have any questions, feel free to contact us online!