How to Refinance a Car Loan

car finance paperwork with calculator

You can lower your monthly car payments and save on interest in Orange Park by learning how to refinance a car loan. The finance team at Beaver Chevrolet wants to show you the best way to refinance an auto loan and what to know when refinancing your car so that you can be in the best financial situation possible. Keep reading, then contact us to learn more today!

How Do You Refinance a Car Loan?

By refinancing, you can lower your monthly interest rate and save on your vehicle purchase. So how do you refinance a car loan? First, you need to know what you’re currently paying. Contact your lender or review your own documents to confirm your current interest rate and monthly payments in Ponte Vedra. With that information, you can follow these steps:

Check Your Credit Score: By paying bills on time, you improve your credit score. If your credit score has improved since you took out the loan, refinancing could get you a better deal.
Start Applying: You have to submit all your applications within 14 days to minimize the negative impact on your credit score, but you should apply to several automotive refinance companies for a refinanced loan.
Evaluate Offers: You’ll receive different offers from each place. Take your time and run the numbers to see which one gives you the monthly payment you’re looking for. Our monthly payment calculator can help you compare the offers.
Decide Loan Term: Depending on your situation, you may prefer a longer or shorter-term loan. Short-term loans mean larger monthly payments, but less interest in the long run. Longer-term loans allow you to have smaller monthly payments, but in the long run, you will pay more because of interest.

The most important part of how to refinance a car loan is to check your budget and be realistic about which plan best fits it. You don’t want to make the wrong decision.

What to Know When Refinancing Your Car

If you still have questions, feel free to contact us. Our finance experts in Jacksonville will be happy to help you learn how to refinance a car loan!