To refinance a car loan, gather all the necessary documents. Next, assess your credit profile, car information to determine if refinancing is beneficial and if you qualify. Lenders will post their requirements online and some will even allow you to pre-qualify.
Auto Refinance Company FAQs
How to refinance a car
Before you begin the application process, shop around and compare offers from different lenders. When you choose the best, submit an official application and wait for the official offer from the lender. If accepted, you can finalize the document, settle the previous loan, and begin your loan repayments with the new lender.
When can I refinance my car?
You should refinance a car loan if it saves you money, if you have a good credit rating, or if your rating has improved. Refinancing your car loan with better credit can get you better interest rates and help you negotiate a shorter loan term.
You should not consider refinancing your car loan if you are financially stressed or if your loan value is underwater, which means the loan value is greater than the value of your car. This type of loan will impact your loan to value ratio and significantly reduce the chances of qualifying for favorable loan terms for a refinance.