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How to Refinance a Car Loan

Knowing how to refinance a car loan can help you lower your monthly car payments and save on interest. At South Point Dodge, we’re committed to helping you pay less for a car that meets your needs in Kyle. In the guide below, we cover what to know when refinancing your car down to the last detail!

 

 

How Do You Refinance a Car Loan?

First, review your loan documents or contact your lender to find out what you’re paying in interest each month. Then you can look into the best way to refinance an auto loan and whether refinancing can lower your monthly interest rate. Here’s how to refinance a car loan if you do decide to move forward:

  • Check Your Credit Score: If your credit score is higher now than it was when you got your original loan, you’ll probably benefit from refinancing. Timely auto loan payments since you purchased your car may have boosted your score already!
  • Start Applying: Apply to multiple automotive refinance companies and then take the best offer. Be sure to submit all applications within a 14 day period to minimize any negative impact on your credit score.
  • Evaluate Offers: Use our online monthly payment calculator to determine which offer will give you the monthly payment amount you’re looking for.
  • Adjust Your Loan Term: If you want to adjust your loan terms, how do you refinance a car loan to better fit your situation? Speak with your lender about extending or shortening your loan term. The best way to refinance an auto loan depends on your circumstances, so make sure that your loan is updated to match your present financial situation.

What to Know When Refinancing Your Car

How do you refinance a car loan? That much is clear, but it’s just as important to be sure that now is the right time to do it. Here’s what to know when refinancing your car — whether you choose to move forward now or wait:

  • Fees: Some loan agreements include fees associated with paying off your loan early, so check your original loan to be sure that refinancing will still be cost effective.
  • Underwater Finances: Keep in mind that it’s much harder to get approved for refinancing if you owe more on your loan than your car is currently worth.
  • Older Vehicles: Many lenders won’t refinance an older car that’s already experienced major depreciation. 

Questions about how to refinance a car loan in any of these situations? Contact the friendly finance center experts at South Point Dodge. We’re standing by with the car-buying expertise and guidance you need.

Learn the Best Way to Refinance an Auto Loan in Austin 

Whether you’re in Round Rock or Cedar Park, we know every driver’s situation is unique — and we’re here to help you determine the best way to refinance your auto loan! Contact us today to learn more.

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South Point Dodge 30.203941, -97.758841.