How to Refinance a Car Loan

man signing document with a toy car on the desk next to him

If you want to lower your monthly car payments and save money on interest, then refinancing your car loan might be a good option for you. The finance department at Westbrook Toyota covers some of the best ways to refinance an auto loan in detail. Let us show you what to know when refinancing your car, so you can cruise the Old Saybrook roads with confidence.

How Do You Refinance a Car Loan?

When you refinance, you’re trying to lower the interest rate you’re being charged each month. When learning how to refinance a car loan, you need to know what you are currently paying. To find this amount, review any documents or contact your lender to find out what your current interest rate is and how much you’re paying. After you find that information, you’ll want to perform the following:

  • Check Your Credit Score: If you have paid your bills on time since you bought your vehicle, then your credit score has most likely improved and refinancing would be beneficial.
  • Start Applying: One of the best ways to refinance an auto loan is to apply to several auto refinancing companies to make sure you get the best rate possible. When applying, make sure you submit all applications within a 14 day period to lower the chances of your credit score being negatively impacted.
  • Evaluate Offers: Take the time to look over the offers you get from your applications to compare deals. Feel free to take advantage of our payment calculator at Westbrook Toyota to help you figure out the best deals.
  • Decide Loan Term: You’ll want to decide if you want a longer term or shorter term that best fits your situation and budget. A shorter term means larger monthly payments but less interest. A longer term means a smaller payment but more in interest.

How do you refinance a car loan? The best way to refinance an auto loan is to decide which method is best for you and your circumstances. If you’re wanting to buy out your current lease, learn how to calculate a lease buyout with Westbrook Toyota to get the best deal possible.

What to Know When Refinancing Your Car

Here are some other things Madison drivers will want to consider when refinancing:

  • Fees: Check with your lender to see if there are fees for paying off your loan early. If there are fees, then refinancing may not be beneficial.
  • Underwater Finances: It can be harder to get approved for financing if you owe much more than your vehicle is worth, so be sure you are up to date on your finances.
  • Older Vehicles: Many lenders won’t refinance an older car that has already experienced major depreciation.

If you are still unsure about how to refinance a car loan or want to learn more about refinancing, our finance experts can walk you through all of your options. If you’ve considered trading in your vehicle, we can show you how to trade in your car to get the best deal possible.

Discover Your Financing Options with Westbrook Toyota

Now that we’ve shown you what to know when refinancing, it’s time to visit our finance department at Westbrook Toyota to discuss your financing in the Clinton area. Contact us to help you discover your refinancing options and get you back on the Westbrook roads with confidence. You can learn about all kinds of financing options, like gap insurance, when you visit us.

Westbrook Toyota 41.2907604, -72.4422888.