How to Refinance a Car Loan

Woman signing a car insurance policy, the agent is holding the document

How do you refinance a car loan? There’s not just one set way to refinance an auto loan. That’s why it’s important to know the different options you have when refinancing, so you can find the best option that works for you. Our finance department can walk you through the process of refinancing to make it easy. To get the most out of the Farmington roads, here’s what to know when refinancing your car.

Best Ways to Refinance an Auto Loan

When you refinance a car loan, you are trying to lower the interest rate of the monthly loan payments. If you want to know how to refinance a car loan, the first step is knowing what you are already paying each month for your car payment. Not sure what to know when refinancing your car?

You’ll need to collect all the necessary documentation, which includes the car title, proof of registration and insurance, and any banking and credit history. These documents will tell your loan provider or financial advisor everything they need to know. Once you have all the documents you need, here’s what you’ll need to do next:

  • Take a Look at Your Credit Score: Knowing your credit score is one of the best ways to refinance an auto loan easily. If you have a good habit of making payments on time and have few to no late fees, your credit score will typically go up. The higher the credit score, the lower the interest rate.
  • Apply: You’ll want to apply to several different auto refinancing companies to compare and get the best rate possible. To ensure there your credit score stays up, submit all applications within 14 days.
  • Compare Offers: Compare every available offer so you’ll know exactly what you’ll pay each month. To get even more help with monthly payment estimates, you can use our payment calculator.
  • Create a Loan Term: The length of your loan term will depend on which payment options are better for you. A longer loan term will mean smaller monthly payments but higher interest rates. A shorter loan term will mean larger monthly payments but smaller interest rates.

The best refinancing plan will be the one that works best with your Cortez lifestyle.

Other Things to Know When Refinancing Your Car

If you’re still wondering, “how do I refinance a car loan?”, here are some other things to consider:

  • Fees and Penalties: Check out the details of your old car loan to be sure there are no fees or penalties for paying it off early.
  • Financial Situation: If what you still owe on your car is worth more than the car itself, then it will be hard to get refinanced.
  • Vehicle Age: The older your vehicle is and the more depreciation that has occurred, the harder it is to get refinanced.

These are just some of the best ways to refinance an auto loan. To get you driving on the Mancos roads with confidence again, let Nissan of Durango help you apply for financing online.

Explore Your Financing Options in Durango

Now that you know how to refinance a car loan, you can be better equipped to find a refinancing plan that works for you. Our team of financial experts can tell you what to know when refinancing your car, like payment amounts and credit scores. If you want to trade-in your car, we can find your car’s value with our trade-in value tool. Contact us today to learn more about how to refinance a car loan!

 

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