Are you stuck in a bad auto loan deal? There’s never a wrong time to consider a car refinance. This is especially true when you have a high-interest rate and a very long term to pay the loan. However, today is the best time to consider a car loan refinance because there are ever more lenders in the market. Having more lenders in the market also means that you get to have a lot more options than you did in the past.
Moreover, since the laws concerning auto loans differ in each state, there is a lot of diversity awaiting you. You can start by paying attention to the numbers and figuring out where you are during the life of your loan. It’s always better to go for an auto refinance earlier than later. The more you delay it, the fewer chances you have to lower your monthly payments. By refinancing late, you won’t be making much of a difference to your current situation.
Refinance Car loan
However, we do recommend speaking to your existing lender about the possibility of refinancing. If they’re open to it and give you their best offer, compare it to those from a credit union, online lenders, or your local bank. Moreover, be wary of offers that give you a low monthly payment at the cost of extending your loan term, especially on an aging car.
This only means you will be paying more in the end, even if your monthly payments are lower than the last deal. Also, pay attention to any fee linked to refinancing and make sure that it’s not more than what you would save instead. Sometimes, there’s also a penalty for paying the loan off early, which is why you must check every deal being offered to you thoroughly.
Furthermore, the pandemic is an even better time to consider a car refinance because of a dramatic fall in sales. This has also consequently resulted in an overall increase in the value of used cars, making it easier to refinance.
The decision to refinance depends on several factors, including your financial standing, credit score, and lender. There’s never a bad time to refinance your auto loan, but there are bad circumstances in which you should hold back, such as having a low credit score or a high-interest rate. Nevertheless, today’s market is much more diverse and open to customers who are looking to refinance their auto loans.
Lower your monthly payments and save.
With our quick 1-minute application process, we can help you lower your monthly payments and save. Refinancing a car loan could help you lower your payment by getting a better interest rate or changing the length of your loan.
No Payments up to 60 Days
You’ll have the flexibility to start paying up to 60 days after your loan is approved.