You’ve finally got that luxury car you’ve always dreamt of, but are you struggling with repaying your car loan? Car refinance can help you to sort out your problem. Many South Africans enjoy the benefits of refinancing as they are able to save money as well as plan and cope with their monthly payments efficiently.
Car refinance involves getting a new loan to repay your original car loan. Your car ownership is automatically transferred to the new lender until you complete the payments and the car is totally yours. You are probably thinking, why should I do that?
5 Reasons to Choose Car Refinance
- Reduce Your Interest Rate
Car dealers use high-interest rates to offset your car loan. A new lender can reduce the amount of interest you pay on the loan. They can also reduce the monthly repayments or make the loan terms more flexible for you.
- Improved Credit Score
Your interest rate could have been high because of a weak credit score. If you have been making diligent and timeous repayments for six consecutive months, your rating could have improved. To reduce your interest, consider car refinancing and negotiate a more favourable interest rate which will make monthly repayments easier.
- Flexible Terms
If you find that your income has increased substantially, and you wish to increase your monthly payments, car refinancing is the answer. It is an uncomplicated option to introduce flexible terms to the loan. Larger payments will dispense with the loan sooner and you could negotiate a very fair interest rate as well.
- 4. Lower Interest Rates = Savings
At times, due to greater liquidity in the market, interest rates go down. This is the best time to refinance your car loan as you will pay lower interest rates. You will ultimately be paying less for your luxury car.
- An Upside-Down Loan
This means you purchased a car at a higher price compared to its market value. It means you cannot get back the amount you paid even if you sell the car. Car refinancing allows you to get an extended period over which to repay the loan. It can also be an opportunity to reduce the interest rate on the new loan.
Whilst it’s sometimes more convenient to get a loan through the dealer, the result is often the upside-down loan. So to reduce the financial strain on you, opt for car refinance.
Car refinancing enables you to keep the car of your dreams. If you have repaid a portion of your car loan, there will be value in it to enable you to refinance your car. Apply for refinance and assistance by contacting Carfin.