How to Refinance a Car Loan
How to Refinance a Car Loan
So, you have successfully secured a car loan but are not too happy with the terms. It may be that the interest rate is too high or your annual income has had a negative impact; whatever the reason might be, an unfavorable or lousy car loan can have a significantly harmful effect on your life. So, it is time to start shopping and ditch the old car loan in favour of a new one by refinancing it. At West Side Acura, we have a fantastic collection of new vehicles equipped with all the latest technology and features. Browse online or in-store and find the perfect vehicle.
How to refinance your car loan and how it works
When you are ready to refinance your car, you replace your current car loan with a new one. The lender will qualify you for credit and assess to see if your vehicle is eligible or not. The new lender/loan will then pay off your original lender/loan, and you begin making monthly payments on the new car loan. The application process for refinancing doesn't take much time, and many lenders can/may make determinations quickly, but you still need to qualify. You will be asked for documentation such as proof of income to make sure you can handle the financial payments, photo identification, vehicle information, credit score, and credit history, along with proof of residency such as a utility or tax bill.
What are the Benefits of Refinancing a Car?
There are several benefits to refinancing a car loan. The number one reason to refinance a car loan is the opportunity to get a better and generally lower interest rate. Lowering your interest rate affects the overall amount you will pay back, which is usually less and another reason to refinance. Refinancing works in your favour because it could help lower the monthly payment, keeping more money in your pocket. Another reason to refinance is to renew the terms, such as removing a previous co-signer who is no longer needed. If you have any questions, please don't hesitate to contact us.