Best Car Loan Refinance Solutions
Some people want to save cash while others just want a better interest rate. Regardless of what’s behind your decision, refinancing your car may be the right alternative for you.
Refinancing Car Loans
Do you want to save money? Refinancing your car loan may be the way to do so. If you decrease the ongoing fees, interest rates, or term, you could save thousands of dollars.
Best Car Loan Refinance Solutions
Some people want to save cash while others just want a better interest rate. Regardless of what’s behind your decision, refinancing your car may be the right alternative for you.
Refinancing Car Loans
Do you want to save money? Refinancing your car loan may be the way to do so. If you decrease the ongoing fees, interest rates, or term, you could save thousands of dollars.
How Car Loan Refinancing Works
A car loan refinance consists of paying off your current car loan debt with a new loan agreement. If you choose this path, you’ll agree to a new car loan and use it to payout the current loan contract.
Refinancing Guide
Before thinking about refinancing your car loan, you must consider different things. This short guide helps you understand some of the aspects you should keep in mind.
Decide if it Makes Sense
Refinancing a used car loan is not for everyone, and this depends on your specific circumstances and requirements.
When you refinance a car loan, you have to consider all costs, including the fees to exit the current loan, fees for the new loan, interest rates, and terms.
Overall, refinancing car loans can, reduce the interest rate you pay, and therefore the total cost of the loan over the full term.
Your motivation maybe to reduce the fixed monthly payment regardless of the cost as you are preparing to buy a home and reducing this payment can help you purchase a house.
There may be many reasons to refinance a car loan so let us help you make sense of it!
Verify Your Credit Score
When you’re getting car loans, lenders heavily rely on your credit score to assess your character and how likely you are to repay the loan.
A credit score is very important for any type of loan you apply for. This gives the lender a snapshot of your repayment history on current loans, and any other loan enquiries you have made in the last 5 years.
Therefore, when refinancing a car loan its important you have a good credit score and you have made payments on the loan you’re refinancing without any missed payments.
Gather Documents
We can let you know what documents will be needed to refinance your car loan. Supporting documents are important and will improve your chances of getting your refinance proposal approved without any hassle.
Our team of professionals are thorough when it comes to paperwork, which is why relying on brokers with the know-how will benefit your car loan refinance proposal. We’ll help you get through the process quickly!
Ask Questions
We want to help you understand if refinancing is suitable for your situation, so we welcome any questions you have to help you understand if this is the right move for you.
We make a commitment to understand what all our clients are trying to achieve so we can pair you with the right loan and lender.
If refinancing a car loan is on your mind, you have to choose the best alternatives to do so. Our team will research the lenders that can refinance your car loan and will complete a cost benefit analysis to ensure you can save money.
On the other hand, if you’re looking to reduce your monthly outgoings by spreading repayment over a longer term, we can be of assistance with this as well. We will help you understand what the cost to you is in this scenario also.
Hire Top Professionals
When you engage our office to refinance a car loan you can be sure we will give you the right advice, after all refinancing your car loan may not be the best option after all, and we will tell you if we don’t see any benefit
Whatever you decide, we will be sure to negotiate the best car loan refinance package for your needs and requirements.
When Should You Refinance?
If you’re making considerations to refinance your car loan it generally means, there is a specific purpose for doing so, and we want to understand your purpose.
In majority of refinance proposals, the intended motivation is to reduce the interest rate on your current loan. Other circumstances could be restructuring the loan term to reduce payments or increase payments to finish the loan sooner.
Other common reasons could be repackaging multiple loans into one, so you only have one repayment. This can be common if you have multiple high interest loans or revolving credit limits. Often this type of loan is setup as an unsecured personal loan.
Whatever your reason we’re in your corner and are ready to help!
Lower Car Loan Interest Rates
Refinancing your car loan can be the best way to save money if you initially borrowed the money at a higher interest rate. You can potentially save thousands of dollars just by reviewing what the interest rate is on your car loan, or we can help you do this.
A quick way to get an estimate of how much you’d pay is to use our calculator. You’ll find out more about it below!
You Didn’t Consider Interest Rates
Some people first get their car loan from their dealer when they purchased the car, and they don’t really consider rates given there is so much excitement to buying a new car. Clients don’t always check their scores or look for the best options when they get started with the finance process. If this is you, your wallet could be suffering because of it.
We’re here to offer you the best car loan deals, regardless of whether or not your dealer gave it to you at first. When we work together, we guarantee that we provide top alternatives that align with your goals!
High Car Loan Repayments
Refinancing your car loan could be a convenient alternative if your monthly repayment and fees are too high. With a low interest rate, you may be able to lower the payments, but in some cases, it’s not enough.
On the other hand, if you extend the length of your car loan, you could reduce your monthly repayments. In extending the term this can mean you pay more interest over the loan term.
Options to Consider
If you want to take advantage of your car loan, you have to consider different alternatives before choosing if you should refinance or not. Take a look at the options to keep in mind:
Car Loan Term
The term is the specific period in which you have to pay your car loan. Even though it varies, it’s rarely more than five years.
When you work with us, we try our best to help you locate the most convenient car loans. Thus, if you already have an idea of a term that could work for you, we can guide you through the process!
Fixed and Variable Rates
Most car loans offer a fixed rate. This means that you’ll always pay the same amount of money throughout the loan term.
With a fixed rate, you don’t have to worry about your monthly repayment going up or down. This helps with budgeting, and it offers payment certainty.
However, if you want to get off your loan early or make extra repayments, you may have to pay an early exit fee, which is inconvenient for some people.
Variable rates are different. In this case, your repayment can go up or down depending on market interest rates.
Variable rate car loans are not common, but some lenders do offer this type of interest rate. Talk to us if you’re considering a variable interest rate car loan. Be sure this is right for you.lternatives with a low interest rate, and more!
Secured and Unsecured Loans
A secured car loan allows you to get a lower interest rate. With this alternative, you’ll put your car or another asset forward as security for the loan.
If you fail to pay your car loan, your lender will seize your car (or the asset you used as security) to get their money back.
When you get an unsecured loan, the interest rate is generally higher, and the financial institution is taking a bigger risk. Choosing this option means you have to prove your worthiness and its often based on your credit score.
New Car Loan Alternatives
Many people are interested in getting new vehicles, for example, eco-friendly ones. Fortunately, green car loan options are becoming more common.
The interest rate may vary depending on the vehicle you’re getting. However, if you want to explore green car loan alternatives, we can help you!
Purchasing an eco-friendly vehicle is a fantastic alternative since you won’t harm the environment with carbon emissions. Even so, you may need a green car loan to pay for it, and that’s where we come in – we can help you get the best options, find alternatives with a low interest rate, and more!
Pros and Cons
Getting car loans is a convenient option for many people, but it has disadvantages as well. You have to look at the full picture before making any rash decisions. Here are its main pros and cons:
Pros
- A new lender could give you a lower interest rate
- You may be able to reduce the amount you pay per month
- Extending your loan term could be possible
- The amount you pay in your repayments could decrease
- You may get new and more convenient features
- If you have issues with your current lender, you could get a new one
- You could remove a co-signer from the loan
Cons
- In the long run, you may have to pay more
- Some lenders ask you for entry and exit fees
- Some people are overwhelmed by the number of alternatives
What Is a Balloon Payment?
Car loans exist for you to be able to pay for your vehicle even if you don’t have all the money at a specific moment. However, repayments can be higher than your budget permits.
An option to get lower repayments is to get a loan with a ‘balloon payment’ alternative. This is a one-off sum that you and your lender will settle on, and you’ll pay it at the end of your loan term.
Although it sounds like a lot, it can hugely impact the amount of interest rate you pay. Thus, it’s an alternative you should consider carefully.
Instead of a balloon you may also consider a longer term, like an 84-month term to keep repayments within budget.
Our Car Loan Calculator
Checkout our car loan refinance calculator to see if you can save money by refinancing. Please note interest rates can vary between lenders so the interest rate you input may not be the final interest rate on your loan. This calculator should be used as an estimate of repayments only.
Frequently Asked Questions
Refinancing is borrowing money from a lender to repay a loan you have with another lender, in doing so your existing contract will close and you will start a new contract with the new lender.
You should refinance if you want to lower your interest rate, get better features, deal with a new lender, or maybe even consolidate multiple loans.
Choosing how and when you should refinance is not an easy choice. On many occasions, you have to evaluate different interest rates, lenders, and the fees involved with refinancing.
At our company, we specialise in getting you the best options for your situation. We’ll make sure we offer a fantastic interest rate with the financial institutions that’ll say ‘yes’ to you, and we’ll do everything possible to align the loan options with your financial goals.
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