How to Refinance a Car Loan

Car Loan
Knowing how to refinance a car loan can help you lower your monthly payments by securing an interest rate that is a better fit with your budget. So, how do you refinance a car loan? This guide from the experts in the Cadillac of Beverly Hills Finance Center will fill you in on what to know when refinancing your car in the Woodland Hills area.

 

 

How Do You Refinance a Car Loan?

To start, you should take a look at your statements to find out how much interest you are paying each month. Then, after confirming your current interest rate with your lender, follow these steps:

      • Check Your Current Credit Score: Even if you began your financing with a bad credit rating, if you’ve been on time with your car loan payments, your credit score will reflect this, and you should be eligible for a lower interest rate.
      • Start Applying: The best way to refinance a car loan is to apply for financing with Cadillac of Beverly Hills, or other Sherman Oaks-area auto finance companies, to determine what kind of interest rate you are eligible for. Note that finance applications should be submitted within 14 days of each other in order to minimize the impact on your credit score.
      • Compare Offers: Review the financing offers you receive to see which comes closest to the monthly payment amount you want. You can use our convenient online payment calculator to help you compare your financing offers.
      • Determine the Loan Term that Best Suits Your Budget: A longer loan term will offer smaller payments, but you will pay more interest over the course of the loan. A shorter loan term will include larger payments, but you’ll end up paying less in interest.

How to Refinance a Car Loan: Refinancing Tips

When learning how to refinance a car loan, or deciding on the best way to refinance a car loan, you should take the following into consideration:

      • Fees: Check your original loan to see if there are any fees associated with paying it off early. If there are substantial fees involved, refinancing may not be the most cost-effective option.
      • Upside-Down Loan: A car loan is considered upside-down when the value of your vehicle is less than what you owe on your car loan. Most lenders will not approve refinancing if your loan is upside-down.
      • Older Vehicles: An older vehicle that has experienced significant depreciation is an unlikely candidate for refinancing.

Learn More About Your Car Finance Options at Cadillac of Beverly Hills

Now that you have the details on what to know when refinancing your car, feel free to reach out to our Finance Center for more information. We will be happy to walk you through the refinancing process and ensure that you get the best interest rate possible. Interested in upgrading to a brand new Cadillac? Check out our current new vehicle specials.

 

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