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Over time, everyone’s financial circumstances change.
And as circumstances change, you may want to rethink some of your financial commitments. Looking at car loan refinance options can save you a lot of money each month.
You can save a significant amount of money every month if you refinance a car loan. This is essentially replacing your existing car finance with a new one – generally with better terms. At CarMoney, we’ll help you find car loan refinance options that can save you cash.
A car refinance deal can reduce interest rates, extend the period of the loan or – if you are looking to upgrade your car – increase the loan amount.
Usually, people look to refinance a car loan to reduce their monthly payments. At CarMoney, our team will scour the market to find the right refinancing deals for you, whether you are looking to reduce repayments or borrow more.
Representative Example: Borrow £7,000 with £1,000 deposit over 48 months with a representative APR of 17.9%, monthly payment would be £171.83, with a total cost of credit of £2,247.83 and a total amount payable of £8,247.83. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions this can either be a % of the amount borrowed or a flat fee. This does not influence the interest rate you’re offered in any way. CarMoney is a broker not a lender.
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.
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.
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.
Frequently Asked Questions
What is car refinance?
Car refinance is the process of replacing your existing car loan with a new one, typically from a different lender. This can be a good way to lower your interest rate, monthly payments, or loan term.
How to refinance a car?
When considering car refinancing, it is recommended to conduct thorough research, obtain pre-approval, compare various lenders, obtain a credit report, explore different options, carefully review the terms and conditions, take into account factors such as interest rate, loan term, down payment, and any applicable fees.
Can I refinance my car?
Refinancing can be a money-saving option if you possess a good credit score and have equity in your car. It is advisable to explore different options and obtain quotes from various lenders. Additionally, considering a secured loan can be beneficial, and getting pre-approval before beginning your car shopping process is recommended.
Why should I refinance my car finance?
There are a few reasons why you might want to refinance your car loan:
– To lower your interest rate: If your credit score has improved since you took out your original loan, you may be able to qualify for a lower interest rate. This could save you money over the life of the loan.
– To lower your monthly payments: If you’re struggling to afford your monthly car payments, you may be able to refinance into a longer loan term. This will lower your monthly payments, but it will also mean you’ll pay more interest overall.
– To get a different type of loan: For example, you may want to switch from a variable rate loan to a fixed rate loan, or vice versa.
Lower Monthly Payments
We are experts in helping people refinance their car loans to lower their monthly payments and improve their loan terms.
We are transparent about our car refinance agreements’ terms, conditions, and costs so you can make an informed decision.
Quick and Convenient Process
We make car loan refinancing fast and easy so you can save money on your payments immediately.
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Our customers love our CarMoney Ninjas
CarMoney Ninja Sean
“Great service, Sean Davidson was great and was always trying to help and give me the easiest experience possible. Thank you very much Sean.”
CarMoney Ninja Alan
“Alan, who I spoke with on the phone, was amazing! He sorted everything out for me, it was so easy and was able to get my car the very next day. Fantastic!”
CarMoney Ninja Sophie
“Sophie who sorted my finance out for car was amazingly nothing was too much trouble for her always kept me up to date. Five stars Sophie. Thanks for everything”
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“My ninja from start to finish Ellie McGavin I Needed a car it was complete from picking to collecting within 2 days friendly staff great communication brilliant.”
CarMoney Ninja James
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CarMoney Ninja Frazer
“Frazer from car money made the experience of getting a car simple and easy. Would definitely recommend to family and friends. Thanks again CarMoney!”