For many, the financing you agree to when buying a car works well for a while, but before long, it can get to be a burden. What to do? The answer may be to refinance your car loan.
For those with good credit, this has always been an option. But what’s new is that auto refinancing is now available for those with poor or bad credit. This means that if you have poor or bad credit, you have the opportunity to refinance the existing auto loan on your current car regardless of your credit. By refinancing, you replace the current loan on the car with a new one with a new loan amount, loan term, and interest rate. When you refinance an existing loan, the current loan is paid off, and a new loan and a new lien are placed on the car. It’s very similar to what’s been taking place for a long time in regard to home mortgages which are often refinanced.
There are several important things that be accomplished with an auto refinance. They include:
1. Since you often borrow less when you refinance than you did with your original loan, there’s a
good chance your monthly payments will be lower.
2. You can often lower your interest rate, and this will save you money.
3. By extending the term of your loan, your payments can be lower.
Combined together, it’s hard to see why looking seriously into refinancing your current auto loan isn’t a very smart idea.
Also, if your credit has improved since you made the original loan, you may find the new loan a better deal and easier to manage than your original loan. It all starts right here by letting us know more about you and your situation. Based on what you tell us, we can let you know if refinancing your car works for you.
Our network of online financing specialists can go to work for you. They can tell quickly if they are going to be able to help you. Our team is committed to helping customers that have been unable to refinance their auto loans through conventional lending sources.