How to Refinance a Car Loan
Looking for a way to lower your monthly car payment in the Winnipeg area? Learning the ins and outs of how to refinance a car loan can help you get a better interest rate, which will reduce the amount you’ll have to pay each month. This guide from the Capital Ford Winnipeg Finance Centre will fill you in on what to know when refinancing your car.
The Best Way to Refinance an Auto Loan
How do you refinance a car loan? The first thing you’ll need to do is find out what your current interest rate is. Review your statements to find out how much you are paying in interest each month, as well as what your total monthly payments are. Once you have confirmed these figures with your lender, follow these steps:
- Check Your Current Credit Score: If you have kept up with your car loan payments, you’ll most likely have a favorable credit score and you should be eligible for a lower interest rate.
- Start Applying: Apply for financing with Capital Ford Winnipeg and several Selkirk-area auto finance companies in order to find the best rate available. Make sure to submit all applications within 14 days of each other to minimize the impact on your credit score.
- Evaluate Offers: Review the refinancing offers you receive to see which one comes closest to the monthly payment amount you want. At Capital Ford Winnipeg, we offer a convenient online payment calculator to help you compare your financing offers.
- Determine Your Loan Term: The longer the loan term, the smaller your payments will be, but you will pay more interest over the course of the loan. A shorter loan term will include larger payments, but you’ll end up paying less in interest.
What to Know When Refinancing Your Car
When refinancing your car in the Steinbach area, you should make sure that you pay close attention to the following:
- Fees: To make sure that you are choosing the best way to refinance an auto loan, check your original loan to see if there are any fees associated with paying it off early. Refinancing may not be a cost-effective option for you if there are substantial fees associated with it.
- Upside-Down Loan: If the value of your vehicle is less than what you owe on your car loan, you may not be approved for refinancing.
- Older Vehicles: Lenders may also refuse approval on an older vehicle that has experienced significant depreciation.
Learn More About Your Financing Options at Capital Ford Winnipeg
You can count on the finance team at Capital Ford Winnipeg to answer all of your auto financing questions, from what to know when refinancing a car to bad credit financing. We can even help you deicide whether GAP insurance is a good option for you. Our goal is to help you secure the auto loan or lease that is the best fit with your budget. Please feel free to contact us if you have any questions.