Auto Loan Refinancing

Looking To Refinance?

If you buy a more expensive new car, your monthly payments may be higher than you want. Like mortgages, it's possible to refinance a car loan financed with another lender to get a lower payment, lower interest rate, or better terms. You can also refinance if your situation improves to pay the loan off faster.

If your credit score has improved, you may consider refinancing your loan. Getting an auto loan with no credit or bad credit is possible, but you may find that you have to pay higher interest rates. Some financial institutions and dealers will consider your loan higher risk and charge you more in interest.

You can also refinance to get a longer term with lower monthly payments. However, financial institutions tend to charge higher interest rates on older cars. This means that refinancing for a term change can sometimes result in a higher interest rate. Always check the rate you are being offered and consider the possibility that the total cost of the loan could go up.

The refinance process should feel familiar because it is the same process as applying for an auto loan. You can even shop around for the best auto loan refinancing rate and terms. Be sure to shop within a small window of time so it will have less of an impact on your score. Also, remember that some financial institutions do charge application fees on a refinance.

Some people refinance to get a shorter term because they can now afford higher payments. Try to get the shortest loan term you can afford in order to save the most money.

One way to get lower interest auto loan refinancing rates is to switch to a credit union.

Check out our low rates and loan protection that doesn't break the bank. Contact us to find out how we can help you on your refinance journey.