How to Refinance a Car Loan

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Drivers in Owasso who purchased a car while they had poor credit or no credit may be asking “How do you refinance a car loan?” Many Tulsa residents refinance their loans every year to save money by lowering their monthly payments. Want to learn the best way to refinance an auto loan? Follow along with Jim Glover Dodge Chrysler Jeep Ram FIAT as we go over the ins and outs of refinancing. Do you have specific questions about refinancing? Contact us and we’ll walk you through the process.

How Do You Refinance a Car Loan?

When you refinance a loan, your goal is to lower the interest rate you are being charged each month. To do that, you need to know what you’re currently paying. Review your documents or contact your lender to confirm your current interest rate and monthly payments. Once you have that information, follow these steps:

  • Check Your Credit Score: If you have been paying all your bills on time since your vehicle was purchased, there is a good chance your credit score has improved and you could benefit from refinancing.
  • Start Applying: Apply to several automotive refinance companies in Broken Arrow 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: Take time to run the numbers to make sure any new offers coming back will get you the monthly payment you are looking for. Use our online monthly payment calculator to help you compare offers.
  • Decide On The Loan Term: Decide if a longer or shorter term loan best fits your needs. A shorter term loan will require larger monthly payments, but you will pay less interest in total. With a longer-term loan, your monthly payments will be smaller, but you will pay more in interest in the end.

When you refinance a car loan it’s important to review your financial circumstances. Before choosing a new offer, make sure it works with your finances and will continue to improve your credit score.

What to Know When Refinancing Your Car

Before you refinance your car, there are a few other things to keep in mind:

  • Fees: Check your original car loan to make sure there aren’t any fees associated with paying it off early. If there are, refinancing may not be cost effective.
  • Underwater Finances: If you owe more than your vehicle’s worth, it can be harder to get approved for refinancing.
  • Older Vehicles: Many lenders won’t refinance an older car that has already experienced major depreciation.

If you’re in any of these situations, contact the finance center at Jim Glover Dodge Chrysler Jeep Ram FIAT. Our experts can give you advice and guide you to options that better fit your circumstances.

Learn About Your Financing Options at Jim Glover Dodge Chrysler Jeep Ram FIAT

Now that you know the best way to refinance an auto loan, is it time to refinance your car loan? The financial experts at Jim Glover Dodge Chrysler Jeep Ram FIAT are here and ready to help you with the process. Visit us today near Collinsville to learn more about the process and see if it’s right for you. Thinking of buying a new car? Browse our car buying tips so you’re prepared for your trip to the dealer. Check out more helpful tips on how to secure your next ride with a look at how you can lease a used car or how you can pay off your car loan early.

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