REFINANCING YOUR AUTO LOAN
As a consumer who is financing a vehicle, you might want to look into refinancing your auto loan in order to save money. If you are interested in refinancing your auto loan, you will need to follow a few steps. These steps will ensure that you get a loan on the most affordable terms.
ASSESS YOUR FINANCIAL NEEDS
The first step in the process of getting a new loan is to assess your financial needs. It is important to find out how much money you can save by financing a new loan and how it will help you free up money for other things. It is a good idea to determine what you want to accomplish with a new loan as well. This can include saving money for paying college tuition, paying off the mortgage sooner or having funds for a vacation. Getting a refinanced car loan can also help you lower the payments in order to make it more affordable as well.
CONTACT YOUR LENDER/DEALERSHIP
After you assess your financial needs, you will then want to contact either the car dealership or the lender you used to get the loan. During this process, you will want to find out if you can refinance the loan and what the eligibility requirements are. This will allow you to inquire about the new loan and how you can get started in getting it completed.
SHOP AROUND FOR A LOAN
When it comes to a car loan refinance, consumers will benefit by shopping around for one. Similar to a regular car loan, a refinance can also be done by comparing lenders and what they offer.
Terms
One of the things you will want to look into when getting a refinanced car loan is the terms. Most loans range from 3 to 7 years. It is important to assess how long you plan on paying the loan before you apply for it. By knowing the terms, you will be able to get the loan that is best suited to your financial needs.
Credit Score
Another factor to consider with a refinance is your credit score. Lenders usually evaluate your eligibility for a loan based on your credit rating. As a result, you will want to know your credit score as well as what lenders require before applying for a refinance.
Interest Rate
Most car loans have an interest rate that you will need to pay on top of the principal balance. As a consumer, it is important to know the loans’ interest rate so that you can better determine the exact payment you will need to pay each month. Look for loans that offer the lowest interest rates that you can qualify for.
Monthly Payments
The last thing you will need to evaluate when looking to refinance your car loan is the monthly payment. When you refinance, one of the main objectives is to lower your payment. Carefully evaluate the monthly payment in order to make sure that a refinance is worth it to you.
PROCESS
Once you decide to refinance your car loan, you can begin the process. This process requires a few steps in order to get the loan refinanced.
Contact Lender
The first step in the process is to contact the lender and inquire about receiving an application for a refinance.
Fill Out Application
Once you finish contacting the lender, you then fill out the application and submit it to the lender.
Wait For Approval
After submitting your application, you will then need to wait for approval. A lender will let you know about your loan status within one or two business days.
Sign Contract
As soon as you get the loan approved, you then sign the contract and begin making payments on the refinanced loan.