How to Refinance a Car Loan

Interested in lowering your monthly car payments and saving on interest? Then you’ll want to refinance your car loan. Not sure how to refinance a car loan? Don’t know what happens when you refinance a car, truck, or SUV? There’s no need to worry!

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The finance experts at Bayer Auto Group have broken down everything you need to know about refinancing your car loans. Just continue reading!

How Do You Refinance a Car?

So, how do you refinance a car, truck, or SUV? The purpose of refinancing is to lower your monthly interest rate. Your best first step is to calculate how much you’re currently paying per month. Reach out to your lender or review past financial documents to determine your current monthly payments and interest rate. After you’ve acquired all the relevant information, you’ll want to follow the instructions outlined below:

• Look at Your Credit Score: Have you been paying all your bills on time? There is a good chance your credit score has improved, and you could benefit from refinancing.
• Begin Applying: Apply to several automotive refinance companies to ensure you get the best rate. Make sure you submit all applications within a 14-day period to minimize the negative impact on your credit score.
• Consider Your Offers: Take time to run the numbers to make sure any new offers coming back will get you the monthly payment you are looking for. Use our online monthly payment calculator to help you compare offers.
• Settle on Loan Term: Decide if a longer or shorter-term loan best fits your situation. A shorter-term loan will require larger monthly payments, but you will pay less interest in total. With a longer-term loan, your monthly payments will be smaller, but you will pay more in interest in the end.

Explore Your Financing Options with Bayer Auto Group Today!

Now that you know what happens when you refinance a car, you’re more than prepared to lower your monthly interest rates with little to no fear. However, if you still need a little assistance with the refinancing process, you can always feel free to reach out to us at Bayer Auto Group for extra help! Our savvy consultants know exactly how to refinance a car loan so that you can rest assured that your monthly payments are safely within your budget.