How to Refinance a Car Loan
After you’ve been driving your car around Portland for a few years, it might be time to look into how to refinance a car loan. When you choose the best way to refinance a car loan for you, it can cut your monthly payments and save you money on interest in the long run. The finance department at Dick Hannah RAM can tell you what you need to know when refinancing your car. Check with them for other great car-buying tips, too.
The Best Way to Refinance a Car Loan
The best way to refinance a car loan is to go into the process knowing exactly what you’re already paying. Start by reviewing your documents, or getting in touch with your lender if you need more information about your current interest rate in Beaverton and monthly payments. Once you know your interest rate and current payments, follow these steps:
- Check Your Credit Score: If you’ve stayed on top of your bills since you financed your car, chances are good that you’ve improved your credit score.
- Start Applying: Apply to several automotive refinance companies to ensure you get the best rate. Make sure you submit all applications within a 14-day period to minimize the negative impact on your credit score.
- Evaluate Offers: Once you have your refinancing offers in hand, use our monthly payment calculator to see which one will best benefit you.
- Decide Loan Term: If you’d like a shorter-term loan you’ll have larger monthly payments but will save money on interest in the long run, paying less overall. A longer-term loan will make your monthly payments smaller, although you’ll pay more interest in the end. The one that’s right for you depends on your circumstances.
What to Know When Refinancing Your Car
Keep these things in mind when you start to refinance your car:
- Fees: Some auto loans include fees for refinancing. Check your original paperwork to see if you have such a loan and if it’s worthwhile to refinance.
- Underwater Finances: This means you owe more than your car is worth. Refinancing might not be helpful to you.
- Older Vehicles: Many lenders won’t refinance an older car that has already experienced major depreciation.
If you have any of these issues, contact our finance department near Hillsboro to see what options are available to you for getting the right monthly payments for your budget.
Learn More About the Best Way to Refinance a Car Loan with Dick Hannah RAM
If you have more questions about how to refinance a car loan, the finance experts at Dick Hannah RAM are here and happy to help. Contact us and we’ll answer any questions and offer our advice on the best way to refinance a car loan for you.