How Do You Refinance a Car Loan?

Signing Finance Documents for Car
If you want to lower your monthly car payments and save money on interest paid, then refinancing your auto loan might be a beneficial option for you. Learn some of the best ways to refinance an auto loan with the finance department at Rockingham Toyota. We’ll show you the in’s and out’s of how refinancing works and what to know when refinancing your car.

Best Ways to Refinance an Auto Loan

If you’re like most Haverhill drivers, then you’re refinancing your auto loan in the hopes of lowering your interest rate each month. To properly do this, you need to know what you’re currently paying, which can be found out by reviewing your documents or by contacting your lender. Once you know what your currency payment amounts and rates are, then you can perform the following:

  • Check Your Credit Score: Paying your bills on time since the purchase of your vehicle could significantly increase your credit score. This will give you a better chance at getting approved for refinancing.
  • Start Applying: To get the best rate, try applying to more than one automotive refinance company. Submit all of your applications within 14 days to avoid a negative impact on your credit score.
  • Evaluate Offers: Compare all of the offers you receive from lenders to see which offer is the most financially beneficial for you. You can calculate your payments with our handy payment calculator online at Rockingham Toyota.
  • Decide Loan Term: You’ll want to decide if a longer or shorter term loan will best fit your current situation. A longer term means lower monthly payments with higher interest. A lower term means higher monthly payments with lower interest.

When you’re comparing offers from other Lawrence lenders, the biggest thing to consider is which offer and plan works best for your unique circumstances.

What to Know When Refinancing Your Car

If you are still unsure how you refinance a car loan or want some other tips, here are some important things to consider:

  • Fees: You will want to check with your lender to see if there are any fees associated with paying off your original loan early as this could be cost ineffective.
  • Poor Finances: If you owe much more than your vehicle’s currently worth, it can be harder to get approved for refinancing.
  • Vehicle Age: If your car is significantly older, then you may have a lower chance of getting it refinanced by Methuen lenders due to the amount of depreciation that has already occurred.

If you found this helpful, then you can learn how to get a car loan with bad credit and more when you visit Rockingham Toyota.

Refinance Your Auto Loan with Rockingham Toyota

Hopefully, you’re not wondering how you refinance a car loan. We’re located in Salem, but you can contact us online or over the phone to go over payment plans or answer any other car-related questions.

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412 South Broadway • Salem, NH 03079

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Rockingham Toyota 42.7481988, -71.2042747.