Refinance a car loan and save

When should you consider a car loan refinance deal?

You can look at car loan options whenever you want to, but who has time to be constantly looking through car loans? Well, our ninjas do but that is beside the point.

However, you should look to refinance the car loan if:

Interest Rates Drop: If the base interest rate has fallen since you took out the original car finance, this may be the time to look at refinancing and reduce monthly costs.

Your Credit Score Improves: You should keep an eye on your credit score, so you can see it improve as you keep up with payments and pay off debts. If your credit score has improved since you first obtained the loan, you may now qualify for a lower interest rate..

Change in Financial Situation: If your financial circumstances have improved, you may be able to secure a better loan term, such as a shorter payoff period. If your financial circumstances have worsened, you may be able to refinance to extend the loan period and reduce payments.

Upgrading your Car: If you’re looking to upgrade your car, or motorbike, or motorhome, you can look at refinancing your car loan while increasing the loan amount.

How to refinance a car loan:

Evaluate Your Current Loan

Get all the information about your existing loan. This includes the current interest rate, remaining balance, and the length of the loan term.

Check Your Credit Score

A higher credit score can lead to more favourable refinancing terms. Get a copy of your credit report, check for any discrepancies or issues and see if you can fix these before applying for refinancing.

Research Lenders

Look for reputable lenders that offer car loan refinancing. Compare their interest rates, terms, fees, and customer reviews to find the best fit for your needs. The CarMoney ninjas will do this for you, leaving you with the lenders that are most likely to approve your application.

Apply for Refinancing

Submit an application with the chosen lender. Be prepared to provide information about your current loan, your vehicle, and your financial situation.

Review Offers

Once you receive offers from lenders, carefully review them. Pay attention to the interest rate, loan term, and any associated fees. Compare these details to your current loan to ensure you’re getting a better deal.

Complete the Refinancing Process

Once you’ve selected a lender and reviewed the terms, complete the necessary paperwork to finalise the refinancing process.

And there you go! Car loan refinance in six easy steps.

When people apply for a car loan refinance deal, it is to improve their terms.

Here are a few of the benefits of refinancing your car loan:

Lower Monthly Payments

By securing a lower interest rate or extending the loan term, you can reduce your monthly payments, freeing up funds for other expenses or savings.

Reduced Interest Costs

A lower interest rate can lead to significant savings over the life of the loan, especially if you have a long-term loan.

Debt Free, Faster

If your financial situation has improved, you may opt for a shorter loan term. This can help you pay off the loan faster and potentially save on interest.

Improve Your Credit Score

Consistently making on-time payments on your refinanced loan can positively impact your credit score, opening up opportunities for better financial products in the future.

Change Loan Terms

Refinancing allows you to modify the terms of your loan to better align with your current financial situation and goals.

So if you’re looking to refinance your car loan, get a quote or contact CarMoney today.