Why should I refinance my existing car loan?
Typically, consumers refinance to get a lower interest rate in
order to reduce their interest costs, or to lower their monthly
payments. Car loan rates are at very low historical levels, so
consumers are increasingly taking advantage of this by
refinancing.When
should I refinance my existing car loan?
As with any personal finance decision, it really depends on your
individual goals. If your goal is to reduce the amount you are
paying in interest, you may want to consider an car refinance
loan with the same or reduced term as your existing loan. If
your goal is a smaller payment, you may want to consider
extending the term remaining on your existing loan, although
this may increase the total interest paid over the life of your
loans. |
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What is an
car refinance loan?
A car refinance is a loan that pays off your existing car loan,
similar to a mortgage refinance, but with a much simpler and
faster process.
How does
it work?
Your new lender pays off your old car loan and the title to your
vehicle is transferred to your new lender.
How much
will I save by refinancing my existing car loan?
How much you save depends on things such as the remaining
balance of your existing loan, the difference between your old
interest rate and the new interest rate, the term of your new
loan, etc. Please click here to link to our loan calculator to
get the most accurate estimates of your potential savings.
Are car
refinance loans growing in popularity?
Yes. Since car loan interest rates have been at historically low
levels, an increasing number of consumers are choosing to
refinance their existing car loans. |
