How to Refinance a Car Loan

 

If you're unsure about how to refinance a car loan, then check out this unique guide. The finance center at Lafayette Lincoln has compiled some of the best ways to refinance an auto loan. We encourage you to take a look at our guide that details what to know about refinancing your car. Then, visit our dealership right here in Lafayette to speak with our finance experts about your unique situation, so we can see how to best help you. 

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What Are the Best Ways to Refinance an Auto Loan?

So, how do you refinance a car loan? Ideally, you're wanting to get a lower rate on the interest you're paying each month. To start, we recommend doing the following things: 

  • See how much you're currently paying. Check with your lender to see how much you're currently paying, or consult your payment documents. 
  • Take a look at your credit score. Paying your bills on time during your car ownership period can help your credit score go up, which can help you get refinanced. 
  • Apply for refinancing to more than one place. Send out your applications to multiple lenders, but do so within a 14-day window. This way, you'll have lower chances of a negative impact on your credit score. 
  • Compare the offers you get from multiple lenders around West Lafayette to see which offer is the best. Use our credit estimator tool to get an idea of what you'll pay each month. 
  • Decide how long you want your loan to be. A shorter term means less interest paid but higher monthly payments. A longer term means more interest paid but lower monthly payments. 

What to Know When Refinancing Your Car

Now that you know about some of the best ways to refinance an auto loan, take a look at some additional things we recommend keeping in mind. 

  • Fees: Be sure that there aren't any early payment penalty fees by consulting your lender. 
  • Finances: Be sure that you don't owe more on your loan than what your car is currently worth. 
  • Vehicle Age: Since older vehicles, usually older than five years old, experience most of their depreciation, many lenders may not want to refinance them. 

For any other questions about how to refinance a car, reach out to the team at Lafayette Lincoln. Otherwise, visit our dealership near Frankfort. 

Ask About Refinancing at Lincoln of Lafayette 

Contact us at Lafayette Lincoln to ask about how to refinance a car or anything else you need to know. We'll work with you directly to go over your unique situation and assess your options.