How to Refinance a Car Loan

Are you looking to lower your monthly car payments and save on interest? You should refinance your car loan with the team at Quality Chevrolet. We’ll cover the ins and outs of refinancing so you’re equipped with the information you need to make the right choice. Read on to learn how to refinance a car loan with the team at Quality Chevrolet. After you learn the best way to refinance a car loan and what to know when refinancing a car, apply for financing on our secure portal to get pre-approved!

How Do You Refinance a Car Loan?

The goal of refinancing is to lower your interest rate. This means 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’ve got that information, perform the following steps:

1. Check your credit score. If you’ve been paying your bills on time since your vehicle was purchased, there’s a good chance that your credit score has improved and you could benefit from refinancing.
2. Start applying. Apply to several automotive refinance companies to ensure that you get the best rate. Make sure you submit all your applications within a 14 day period to minimize the negative impact on your credit score.
3. Evaluate your offers. Take time to run the numbers to make sure any new offers coming in will get you the monthly payment you’re looking for. Use our online monthly payment calculator to help you compare offers.
4. Decide your loan term. Decide if a longer or shorter loan term will fit your situation the best. A shorter loan term will require larger monthly payments, but you’ll 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.

What to Know When Refinancing Your Car

Poway and Carlsbad drivers should know a few more things:

• Fees: You’ll want to check your original car loan to make sure there aren’t any fees associated with paying it off early. If there are, you might not want to refinance.
• Underwater finances: if you owe much more than your vehicle’s current worth, it might be difficult to get approved for refinancing.
• Older vehicles: Many lenders won’t refinance an older car that’s already experienced major depreciation.

Learn About Your Financing Options at Quality Chevrolet

The finance people at Quality Chevrolet are ready to help you find something new in the car buying game. If you’re ready to get in touch with our team, contact us or check out our finance page.