How to Refinance a Car Loan

 

Want to lower your monthly car payments around St. Louis, while saving on interest? In that case, finding the best way to refinance your auto loan can be the best possible option.

At Travers Automotive Group, car financing has been a topic we’ve been dealing with since our very inception. As a result, we’ve had buyers in O'Fallon and beyond asking questions including “How to refinance a car loan” and “How do you refinance a car loan?” for quite a while. To that end, we’ve decided to showcase what are the best ways to refinance an auto loan in our handy guide. Read on to learn more.

Are you interested in lowering your monthly car payments and saving on interest? Then refinancing your car loan may be your best bet. At Travers Automotive Group, we cover the ins and outs of refinancing so you’re armed with all the information you need. Read on to learn how to refinance a car loan in St. Louis!

 

 

How Do You Refinance a Car Loan?

So what to know when refinancing your car? A primary goal of refinancing your loan is lowering the interest rate that’s being charged per month. As a result, it’s an important part is knowing how you’re paying. Go through the documents you have, or contact your existing financial lender to confirm both your monthly payments and current interest rate.

The goal of refinancing is to lower the interest rate you are being charged each month. That means you need to know what you are currently paying. Review your documents or contact your lender to confirm your current interest rate and monthly payments. Once you have that information, perform the following steps:

  • Review Your Credit Score: For those who have been paying their auto bills on time since your car was purchased, then you’re in a good position with your credit score and there’s benefits to refinancing.
  • Start Applying: Consider applying to several automotive refinancing companies to make sure you get the best rate. Always submit all your applications within a 14-day period to make sure there’s no negative impact on your credit score.
  • Always Evaluate Offers: Take your time to run the numbers and make sure your new offers are ideal for the monthly payment you want. For more comparisons, use our Monthly Payment Calculator to help see what your different offers are like.
  • Determine Your Loan Term: You should see whether a short-term or long-term loan is preferred. Shorter loan terms means larger monthly payments, yet less overall interest. In contrast, long-term loans mean smaller payments, however you’ll have more interest in the end.

Remember that the best way to refinance your auto loan depends on your existing circumstances and needs. Any offer or term you select should be perfectly suited for you.

What to Know When Refinancing Your Car

An important part of knowing the best way to reinforce your auto loan is keeping the following aspects in mind:

  • Fees: Make sure your original car loan doesn’t have any fees associated with early payoffs. If this exists, refinancing is not the most cost-effective option.
  • Underwater Finances: For those who owe more on their car than it’s currently worth, it may be harder to get approved for refinancing.
  • Older Vehicles: A lot of financial lenders won’t refinance an older vehicle as it has already experienced major depreciation.

Learn About Your Financing Options at Travers Automotive Group!

Now that you know how to refinance a car loan, Contact the Travers Automotive Group finance center for any more questions you might have. If you’re in the market for a new vehicle, check out our car buying tips section. Our Vehicle Finder Service can help you locate the right option for your needs and budget. Learn what you’re capable of refinancing with Travers Automotive Group. See you shortly!

Travers Automotive Group 38.804900, -90.813170.