How to Refinance a Car Loan

If you’re trying to lower your monthly car payments or save money on interest, then you should consider refinancing. Not sure how to refinance a car loan? The finance department at Shottenkirk Toyota of Granbury has the answers to all of your refinancing questions. We’ll cover the in’s and out’s of financing and show you some of the best ways to refinance an auto loan. Learn how to get refinancing with Shottenkirk Toyota of Granbury and get back on the Burleson roads.

How Do You Refinance a Car Loan?

When you refinance a car loan, you’re trying to get the interest rate lower, so you pay less each month. To do this, you need to know what you’re already paying. To find this amount, go over any and all of your documents and contact your lender to confirm your current interest rate as well as how much you’re paying each month. Once you have the amount, you’ll need to do the following:

  • Check Your Credit Score: The better your credit score, the better the chance of you getting accepted for refinancing. If you pay your bills on time, there’s a good chance your credit score has gone up.
  • Start Applying: The best thing to do is to apply to several automotive refinance companies and compare the different deals offered to get the best rate possible. To avoid any negative impacts on your credit score, you should submit all applications within a 14 day period.
  • Evaluate Offers: Compare all of the different offers you receive and see which offer is the best for you. You can easily find out your payments with our easy-to-use payment calculator at Shottenkirk Toyota of Granbury.
  • Decide Loan Term: The final thing to do is to decide how long you want your loan term to be. If you opt for a longer term, you’ll have smaller monthly payments but more interest. If you decide to go with a smaller loan term, you’ll have larger monthly payments but less interest. Which term you choose will depend on your circumstances and budget.

How do you refinance a car loan? Ultimately, you’ll need to decide which financing option works best with your circumstances.

What to Know When Refinancing Your Car

Here are some other things to keep in mind when refinancing your car:

  • Fees: Check your original car loan to see if there are any fees or penalties for paying it off early. If there are fees, then refinancing may not be cost effective.
  • Underwater Finances: If you owe more than your vehicle is currently worth, then it will be harder to get approved for refinancing.
  • Older Vehicles: If your car is significantly older, many lenders won’t approve it for refinancing since it has experienced much depreciation.

To get back on the Stephenville roads, apply for financing quickly and easily with Shottenkirk Toyota of Granbury. These include just some of what to know when refinancing your car. Learn more car-buying tips like buying vs. leasing when you visit us.

Get the Financing You Need with Shottenkirk Toyota of Granbury

Now that you know how to refinance a car loan, the only thing left to do is to visit our finance department at Shottenkirk Toyota of Granbury to help you explore your options and get back to cruising through Cleburne with confidence. We’re located in Granbury, but you can contact us online to help you with all of your financing questions. To get even more out of your car-buying experience, you can learn all about our certified pre-owned program at Shottenkirk Toyota of Granbury.

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Shottenkirk Toyota of Granbury is your go-to destination for exceptional vehicles and automotive services in Fort Worth, TX.

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June 6, 2024
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