Can You Refinance A Car Loan

Switching car loans might mean you have to pay a fee for exiting your previous contract and even an application fee for the new loan.

Can you refinance a car loan. If you are a first time car loan borrower wait at least a year to refinance your loan. Apply for an auto refinance loan. That s a savings of 80 a month and 2 880 over the. That lower rate assuming all other factors are equal means you pay less for your car after taking all of your borrowing costs into account.

Your vehicle is currently worth 8 000 and you still owe 5 000 on your auto loan. You could now refinance the balance of your car loan at 3 percent and lower your payments to about 445 a month for the remaining three years. The best reason to refinance. You have already paid 5 000 off the loan leaving you with 15 000 left to pay.

Pay less interest. While you might be able to refinance with a lower interest rate the extended loan term may mean you end up paying more interest over the life of the loan. By doing your research you can be more confident that when you choose a loan you re selecting the best offer available to you. Once you ve shopped around collected all of your information and made a decision you re ready to apply.

For instance let s say you have owned your vehicle for three years. The ability to borrow at a lower interest rate is a primary reason to refinance a loan. Combined with the 4 000 you paid on the previous loan you d have paid a total of 27 214 to finance your car 2 488 less than if you had kept your original loan. You choose to refinance your loan with.

One option would be to refinance your vehicle for 6 500. A first time borrower typically needs to build up a good car loan payment history before refinancing. You need money for a small home improvement project. You received a car loan for 20 000 with an interest rate of 12.