How to Refinance a Car Loan

woman refinancing on a laptop

Do you want to lower your monthly car payments and save on interest? Refinancing your car loan could be your best option. Go over the ins and outs of refinancing with Midway Auto Dealerships, so you’re ready to go with all of the information needed. Learn how to refinance a car loan in the Grand Island area.

How Do You Refinance a Car Loan?

Refinancing a car loan is excellent for drivers interested in lowering their current interest rate. You will have to know what you’re currently paying each month. Go over your documents or contact your lender to confirm your current monthly payments and interest rate. Once that information is ready, following these simple steps:

  • Check Your Credit Score: If you pay your bills on time, there is a good chance your credit score has improved, and you could be in a good place to refinance.
  • Start Applying: Apply to a few automotive refinance companies to try and get the best rate. Be sure to submit all applications within a 14-day period to decrease the negative impact on your credit score.
  • Evaluate Offers: Run the numbers to make sure any new offers get you the monthly payment you want. Use our online monthly payment calculator to help you compare offers.
  • Decide Loan Term: Decide if a longer or shorter term loan is best suited for you. A shorter term loan requires a larger monthly payment, but you will pay less interest in total. With a longer-term loan, your monthly payments will be smaller, but you will pay more in interest in the end.

The best way to refinance an auto loan will depend on your circumstances, so choose the offer or term that works for your situation.

What to Know When Refinancing Your Car

There are things to consider when choosing to refinance your car loan.

  • Fees: Check your original car loan to make sure there aren’t any fees associated with paying it off early. If there are, refinancing may not be cost effective.
  • Underwater Finances: If you owe more than your vehicle’s currently worth, getting approved can be difficult.
  • Older Vehicles: Many lenders won’t refinance an older car that has already experienced major depreciation.

If you are in any of these situations, contact the finance center at Midway Auto Dealerships. Our experts can give you advice and guide you to options that fit your situation the best.

Learn About Your Financing Options at Midway Auto Dealerships

Our finance experts are here to help guide you through the refinancing process. Contact us online or by phone if you have any questions about the process.