How to Refinance a Car Loan

Many Scotts Valley drivers want to know how to refinance a car loan to get better interest rates and lower their monthly payments. The experts at the Santa Cruz Subaru finance center can help you navigate through this process, and provide you with the best deal possible. Let’s take a closer look at this below. For more information, feel free to contact us anytime!
How Do You Refinance a Car Loan?
Santa Cruz drivers refinance to score a lower interest rate which decreases their monthly payment. Therefore, it’s important to know exactly what you’re paying each month prior to refinancing. To find out how much you’re currently paying, just reach out to your lender or check your monthly bill. After you figure out how much you’re paying monthly, just follow these easy steps:
- Check Your Credit Score: Your credit score is one of the most important factors to lowering your interest rates. If you are on time with all your bills and your credit score improved, you could significantly benefit from refinancing your loan.
- Start Applying: It’s important to apply to multiple refinancing companies, as this helps you to get the best rate possible. However, we recommend submitting each application within 14 days to lessen the impact on your credit score.
- Review Offers: It’s important to carefully review each offer you receive, and make sure the one you choose will provide you with the best monthly payment.
- Pick a Loan Term: Once you’ve decided on an offer, you now have to pick a loan term. If you choose a shorter loan term, you’ll make higher monthly payments, but the interest will be lower. If you choose a longer loan term, you’ll make smaller monthly payments, but pay more in interest.
When deciding on the best way to refinance an auto loan near San Jose, consider your financial situation and whether your new loan works for you.
What to Know When Refinancing Your Car
Let’s check out a few additional variables to think about when learning how to refinance a car loan, below:
- Fees: Some lenders charge you fees for paying off your loan early, so it’s best to check with your lender to avoid any unnecessary fees or other payments.
- Underwater Finances: If you owe significantly more than the vehicle’s worth, you might run into issues with refinancing.
- Older Vehicles: If you have an older vehicle that has depreciated, lenders will likely not want to refinance.
Find Your Financing Options at Santa Cruz Subaru!</h2
Now that we’ve answered the question “How do you refinance a car loan?”, come stop by Santa Cruz Subaru to learn more! We will help walk you through the entire process, and our experts will provide you with monthly payments that work best for you. If you’re looking for a new car, be sure to check out our model research section , and take advantage of our new vehicle specials to save on your monthly payments in San Jose!