How To Refinance a Car Loan

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Signing off on a car loan is one of the most common ways people today finance their new or used cars. With a loan from the bank or credit union, you pay off your vehicle in total and you pay off the loan in monthly payments. But there are some customers who want to know how to refinance a car loan when visiting our Los Banos dealership. This is actually a possibility that can be done at our finance center near Gustine!

If you’re looking for the best way to refinance an auto loan, visit our finance center and sit down with a specialist who will show you the ins and out of how to refinance a car loan. There are some steps that need to be taken, but they can be done. Contact us today for more information on what to know when refinancing your car loan or visit us in person!

How Do You Refinance a Car Loan 

There are a series of steps that you need to take to refinance a car loan. The primary reason why many of our customers choose to refinance a car loan is to lower interest rates that were initially drawn up on your agreement. Use the following steps to refinance your car loan:

  • Check Your Credit Score: If you have been paying all your bills on time since your vehicle was purchased, there is a good chance your credit score has improved and you could benefit from refinancing. 
  • Start Applying: Apply to several automotive refinance companies to ensure you get the best rate. Make sure you submit all applications within a 14 day period to minimize the negative impact on your credit score.
  • Evaluate Offers: Take time to run the numbers to make sure any new offers coming back will get you the monthly payment you are looking for. Use our online monthly payment calculator to help you compare offers. 
  • Decide Loan Term: Decide if a longer or shorter-term loan that best fits your situation. A shorter-term loan will require larger monthly payments, but you will 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 an Auto Loan

In addition to the points mentioned above, there are some other points you should have in mind when visiting our Newman-area dealership, including:

  • Fees: You will want to check your original car loan to make sure there aren’t any fees associated with paying it off early. If there are, refinancing may not be cost-effective. 
  • Underwater Finances: If you owe much more than your vehicle’s currently worth, it can be harder to get approved for refinancing. 
  • Older Vehicles: Many lenders won’t refinance an older car that has already experienced major depreciation. 

Refinance Your Auto Loan at Western Motors Los Banos 

Now that you’ve learned the best way to refinance your auto loan, drop by our dealership near Dos Palos, and let’s get started today. Contact us for more information!

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