How to Refinance a Car Loan

Man Signing Paperwork

Ready to refinance and searching for the best way to refinance your auto loan? Refinancing a car can be a smart way to reduce your monthly payments and the amount of interest that you pay over time. To find out how to refinance a car loan, and what you need to know when refinancing your car, review the guide Brooklyn Volkswagen’s guide to auto loan refinancing today!

How Do You Refinance a Car Loan in Brooklyn?

The goal of refinancing is to lower your interest rate and ultimately your monthly payments. However, you first need to know what you’re currently paying for both. Review your contract to check your interest rate and current payment plan. After checking that information, you’ll want to take the following steps: 

  • Check Your Credit Score: As long as you’ve paid all your bills on time, your credit score has likely improved since purchasing your vehicle. This means you could benefit from refinancing. 
  • Apply for Loans: You’ll want to apply to several refinancing companies to ensure you get the best rate. Make sure all your applications are done within a 14-day period to avoid a negative impact on your credit score. 
  • Weigh Your Offers: You can use our monthly payment calculator to run the numbers and decide which offer will be the most adventurous for you. 
  • Choose Your Loan Term: Consider whether you want a longer or shorter loan term. A longer term means that you’ll pay less monthly, but pay more interest overall. Meanwhile, a shorter term will require larger monthly payments but could save you on interest. 

What to Know When Refinancing Your Car: Fees, Age, & More

When refinancing your car loan, there are a few things you’ll want to keep in mind to make sure you end up with the new loan you’re looking for: 

  • Additional Fees: Some auto loan contracts include fees for paying off your loan early. If you have to pay fees, it may not be worth it to refinance. 
  • Financing While Underwater: It can be more difficult to get approved for refinancing if you owe more on your loan than your vehicle is currently worth. 
  • Vehicle Age: Older vehicles that have already experienced major depreciation will be harder to refinance. 

Speak with the Brooklyn Volkswagen finance team if you need help with any of these situations above. We can work with you to find the best way to refinance your auto loan. 

Get More Car Financing Tips With Brooklyn Volkswagen

Brooklyn Volkswagen’s finance team is ready to help you with refinancing your vehicle, as well as share more car-buying tips. Get in touch with us today to speak with one of our financing professionals!

 

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