How to Refinance a Car Loan

Refinancing an auto loan saves you money on interest and lowers your monthly payments to make car ownership more affordable. If you’re wondering how to refinance a car loan in the Gothenburg area, it’s easier than you might think. Check out this guide from Jerry Remus Chevrolet for the steps involved in the refinancing process.

How Do You Refinance a Car Loan?

Start by finding out your current monthly payment amount and interest rate. This information should be included in the loan contract or other documents completed at the time of purchase, and you’ll need to know them to ensure you get a better rate from another lender. With most auto refinancing, the objective is to lower the interest rate so your monthly payments are also lower.

Once you have your payment and interest rate numbers, this is the best way to refinance an auto loan in the %%target_city_2% area:

• Check Your Credit Score:A higher credit score will often get you a better interest rate. If you’ve been paying your current car loan–and other bills–on time, your score may have improved, which will put you in a good position for refinancing.
• Fill Out & Submit Applications: Complete applications from multiple lenders so you can compare rates and accept the best one. To prevent a substantial hit to your credit score, submit all applications within the same two-week period.
• Consider Your Offers: Now, compare the offers you receive and identify the most beneficial deal. If you need to, crunch the numbers with a monthly payment calculator. 
• Choose a Loan Term: Think about your financial situation and what will work best for you as far as the term of your new loan. In most cases, the shorter the loan, the higher your monthly payment, and the longer the loan, the lower the monthly payment.

Things to Consider When Learning How to Refinance a Car Loan

As you undertake the above steps, you’ll want to keep some important points in mind. Here’s what to know when refinancing your car to make sure you’re making the right decisions for your financial needs:

• Fees: Some lenders charge fees for paying loans off early, so check your original loan document to see if this will be an issue. If so, refinancing may not save you as much money as you’d hoped.
• Underwater Finances: You might find it more difficult to be approved for refinancing if your outstanding loan balance is significantly more than your vehicle’s current value.
• Older Vehicles: Since older cars have depreciated much more than newer ones, some lenders won’t approve refinancing if your vehicle is past a certain age. 

Discover the Right Financing Options at Jerry Remus Chevrolet

McCook drivers will find a variety of refinancing options at %di_name%%. We can guide you through the process and help you acquire the best deal. And while you’re here, be sure to check out our extensive selection of new vehicles in North Platte. Contact our finance center to schedule an appointment or to get answers to your refinancing questions.