Refinancing your car loan can be a great solution to financial hardship. Vehicle finance isn’t always easy to understand but Carfin is here to explain why the answer to, “should I refinance my car?” is most likely YES!
Refinancing your vehicle loan means you will be replacing your current loan with a new loan. The new loan will have a interest rate, different terms and conditions, or both.
But how do you know if your vehicle needs to be refinanced? Here are some examples of car finance situations that you could find yourself in that make refinancing your vehicle a good idea:
If your monthly payment is too high: Having a more affordable monthly payment is one of the main reasons people refinance their car loan; and with cost of living so high, who doesn’t want that? This can be obtained by extending the life of the loan or adjusting the interest rates, terms and conditions.
If your credit rating has improved: If you’ve been making your current car loan payments on time, your credit should be heading in the right direction. Lenders will usually want to see you make your payments on time for 12 months, but once you have, you could qualify for better interest rates and you’ll actually save yourself some money through vehicle refinance.
If interest rates have decreased: Vehicle finance and car loans tend to fluctuate depending on the fluctuation of the interest rate. If the interest rates on car loans have gone down since your last vehicle finance deal, refinancing would be a wise decision and could you tons of money.
The bottom line is that refinancing your car loan CAN be an excellent idea if you’re looking to save money on your monthly payments and/or extend the length of your current loan. It’s important to make sure vehicle refinancing is right for you before doing so, but in most cases, it is a great option. Contact Carfin for your vehicle refinancing needs today.