How Do You Refinance a Car Loan?

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Car loans help people in all kinds of situations with varied credit afford vehicles that help make everything from commuting to and from work to navigating daily life easier. But sometimes, their usefulness is weighed down by their cost. If you’re interested in lowering your monthly payments or saving on interest charges, the financial experts here at Westpointe Chrysler Jeep Dodge are here to provide financial tips and tricks and advice on how to refinance your car loan.

How to Refinance a Car Loan the Right Way

Why refinance? The main reason for refinancing a car loan is to lower your interest rate. Why do that? The lower the interest rate, the lower you’ll pay in interest, and thus, the lower your monthly payment.

Before your refinance, you should know what you’re currently paying, so the best way to refinance an auto loan involves looking at your financial documents and confirming your current interest rate and monthly payments with your lender. Once you’ve done both of these steps, it’s best to complete the following additional steps:

  • Check Your Credit Score: Do you pay your car payment on-time and often? Your chance of being approved for a lower rate is probably pretty good.
  • Start Applying: Apply to more than one auto refinance company to be certain you will get the best rate. Remember to submit all applications within 14 days of each other to minimize the impact credit pulls will have on your credit score and credit report.
  • Evaluate Refinancing Offers: Have an ideal payment in mind? Then run the numbers for each refinancing agreement you’re approved for to see how it stacks up. You can also take advantage of our monthly payment calculator during this process.
  • Decide on Loan Duration: Think about whether or not a longer vs. shorter loan term will work better for your needs (and what that will do to overall interest paid over the life of your new loan and old loan). A shorter-term loan will require larger monthly payments, but you will pay less interest in total. The reverse is true for a longer loan term.

What to Know When Refinancing Your Car

Keep these additional things in mind when deciding if refinancing your car is right for you:

  • Underwater Finances: If you now owe more money than your car is worth to trade-in or sell (its book value), it can be much more challenging to get approved for refinancing.
  • Fees: Check your original loan agreement to make sure there aren’t any provisions stipulating that if you pay it off early, you’ll pay extra fees. If there are, run the numbers to make sure refinancing is still cost-effective.
  • Older Vehicles: If your car has depreciated significantly due to age or other factors, it’s possible you’ll have a harder time getting approved for refinancing.

If you experience any of the above-listed situations, don’t hesitate to reach out to the Westpointe Chrysler Jeep Dodge finance center for additional advice and guidance regarding your best courses of action to take.

Learn About Your Financing Options at Westpointe Chrysler Jeep Dodge

Now you’ve learned a large portion of what you need to know when you refinance a car. Want to learn more about the refinancing process? Our finance experts are standing by, ready, willing, and able to further assist you however possible! Don’t hesitate to contact us online for additional tips and tricks. All of us here at Westpointe Chrysler Jeep Dodge in Yukon are more than happy to help with all your financing questions and concerns!

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405-265-1400

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11001 W Reno Ave • Yukon, OK 73099

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Westpointe Chrysler Jeep Dodge

11001 W Reno Ave Yukon, OK

Phone: 405-265-1400

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Phone: 405-265-1400

11001 W Reno Ave Yukon, OK

Mobile Sales

Phone: 405-265-1400

11001 W Reno Ave Yukon, OK

Service

Phone: 405-265-1400

11001 W Reno Ave Yukon, OK

Mobile Service

Phone: 405-265-1400

11001 W Reno Ave Yukon, OK
35.4655413 -97.7159764
Westpointe Chrysler Jeep Dodge 35.4655413, -97.7159764.