Does Refinancing Your Auto Loan Make Sense? 4 Ways to Tell
You’ve put in the effort to secure a car loan.You can just focus on paying it off and that’s that, right?Maybe not.There are circumstances in which it makes sense to refinance your car loan.Take a look.1. Interest rates go down.Interest rates are known to rise and fall. When they drop to a point that’s lower than where your car loan is locked in, it’s worth your while to look into refinancing.2. Your credit score is better.Your credit score plays a role in the interest rate you receive for your loan.As time goes by and you work on bringing it up, you may qualify for a lower rate. You’ll save some money by refinancing.3. You want to buy your current lease.You’ll need to really look at the pros and cons before pulling the trigger on this option. If the total cost of buying the vehicle (including the interest on your refinanced car loan) is lower than leasing a different car, you’ll save money.4. You to reduce monthly payments.You don’t always see financial problems coming, but when they do, one way you can work on pulling yourself out of the hole is to lower your monthly payments.You may be able to do this by refinancing for a longer term. Keep in mind, this WILL reduce your monthly payment, but you’ll ultimately pay more over the life of the loan.This option only makes sense if you need an immediate lifesaver.Get expert helpAs you consider refinancing, it’s important that you get help from someone who can give you expert advice.All of our Serra Auto Park finance departments are well-equipped to talk you through your options.Give us a call or stop in and have a chat today.