How to Refinance a Car Loan
Do you love your vehicle, but not the payment? If you’re feeling stuck in a high-interest auto loan, maybe you should think about refinancing it. Are you curious about how to refinance a car loan? Jaguar Darien is here to help. Get some pointers here on the best way to refinance an auto loan, and then head into Jaguar Darien in Darien to talk to our finance department.
How Do You Refinance a Car Loan?
If you’re thinking about refinancing your car loan, these are the basic steps to the process:
- Check your credit report: The best way to refinance an auto loan is to start by checking your credit. Did you know that once a year you can order your free credit report from any, or all, of the three major credit reporting agencies? Some issues, like a forgotten utility bill when you moved to Greenwich, might be easy to clear up.
- Get pre-qualified before you apply: How do you refinance an auto loan without hurting your credit score with a ton of credit applications for a new loan? It’s simple, get pre-qualified. The credit bureaus regard a pre-qualification as “soft applying” so it typically doesn’t have a negative impact on your credit.
- Officially apply with a lender: Now it’s time to officially apply for an auto loan. If you live near New Canaan, contact Jaguar Darien. Remember that a pre-qualification does not necessarily guarantee that you will be approved for a loan or that you’ll get the rate the lender initially quoted you, but it’s a step in the right direction.
What to Know When Refinancing Your Car
Now that you know the best way to refinance a car loan, there are a few other things you should consider when refinancing your auto loan, such as:
- There may be costs to re-register your auto or transfer the title of your car: Do your research so you don’t have any ugly financial surprises.
- You may not qualify for a better interest rate: If your credit has not improved or has gone down, or if interest rates have gone up or stayed the same, you may not get a better interest rate after all.
- There will likely be refinancing fees: Lenders typically charge fees when you refinance an auto loan, and it’s possible that your old lender might even have a prepayment penalty. Call your previous lender so that you are informed when deciding whether or not to refinance a car loan.
Trading in your financed car for a used car lease may also be an option for drivers who want to lower their monthly payments. Are you still looking for information on what to know when refinancing a car? Just contact our team or stop in to sit down with an expert.
Contact the Finance Team at Jaguar Darien Today
If you want to know more about refinancing your Jaguar, the finance team at Jaguar Darien is one of the best in the area. We’re happy to answer all of your questions today. In fact, it’s easy to apply for financing online from the comfort of your home in Stamford or Norwalk. Considering an upgrade? Review our new vehicle specials and then contact us today.