How to Refinance a Car Loan at a Don Hattan Dealerships Dealership

Are you curious about how you can lower your monthly car payments and save on interest in Wichita? Depending on your situation, refinancing could be the best bet for you. Below, we go over all the details of refinancing your vehicle so that you’ll have all the information you need. Keep reading here to learn what to know when refinancing your car in Derby!

So, How Do You Refinance a Car Loan?

The goal of refinancing is to lower the monthly interest rate on your car payment. In this case, you’ll need to know what you are currently paying. Start by reviewing your documents or contacting your lender to confirm your current interest rate and monthly payments. After gathering your information, here are your steps:

1. Check Your Credit Score: If you are consistently paying all your bills on time from the time of purchasing your vehicle, then it’s very likely your credit score has improved and you could benefit from refinancing. 
2. Start Applying: Take the time to apply with several automotive refinance companies for the best rate. Ensure all applications are submitted within a 14 day period to minimize the negative impact on your credit score.
3. Evaluate Offers: Be sure to run the numbers and confirm whether any new offers coming back will get you the monthly payment you are interested in. You can utilize our online monthly payment calculator to help you compare offers. 
4. Decide Loan Term: Make a decision whether you are interested in a longer or shorter term loan depending on which fits your situation. A shorter term loan requires larger monthly payments, but this leads to less interest in total. If you choose a longer-term loan, your monthly payments will be smaller, but you will pay more in interest in the end. 

Finding the best way to refinance an auto loan really depends on your financial circumstances, so be sure that any offer or term you choose works for your situation. 

What to Know When Refinancing Your Car

There are a few other things that are crucial for what to know when refinancing your car:

• Fees: Take the time to confirm whether there are fees associated with refinancing from your original car loan, as there can sometimes be fees associated with paying it off early. If there are then refinancing may not be cost-effective. 
• Underwater Finances: If you owe a lot more than what your vehicle’s currently worth, it can be harder to get approved for refinancing. 
• Older Vehicles: Oftentimes lenders won’t refinance an older car that has already experienced major depreciation. 

If you are in any of these situations when you are considering how you refinance a car loan, contact one of the finance centers at Don Hattan Dealerships. Our experts will give you the advice and guide you on the options that better fit your circumstances. 

Learn How to Refinance a Car Loan at a Don Hattan Dealershop

You can feel certain that our finance experts are here to help you along the way of your refinancing process. If you still have questions, take the time to contact us and speak with someone today!