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How To Refinance a Car Loan

Finance Paperwork with Glasses

When you’ve got a car loan where you’re paying a bit too much, you might be wondering how to refinance a car loan in Sparta Twp. You’ll be happy to learn that finding the best way to refinance an auto loan is a simpler process than most think. Sussex Honda has the scoop on what to know when refinancing your car as well as some great information on how to sell your car to us.

How Do You Refinance a Car Loan?

So, how do you refinance a car loan? There are a couple of things you’ll want to figure out for the refinancing process. Your goal is to lower your interest rate going forward, so you should look over your current documents to confirm your current interest rate and monthly payment. Here are the next steps on how to refinance a car:

  • Check your credit score. Consistent, on-time payment of your bills between the time of your vehicle’s purchase and now means it’s likely you’ve got a better credit score than when you started.
  • Start applying. Apply to several automotive financing companies. This way, you’ll get competition for the best rate. Also, you’re going to want to send in all your applications within 14 days of each other because too many applications over time will damage your score.
  • Look at your offers. Take some time to figure out what your new monthly payment will be when you’ve refinanced.
  • Decide your term. You have the choice between a shorter term and a longer term loan. With a shorter loan, you’ll have a higher monthly payment, but you’ll be paying less in interest over the life of the loan. Longer loans have smaller monthly payments, but more total interest is paid.

Additional Tips on How to Refinance a Car

If you’re looking for the best advice on how to refinance a car loan in Denville, you should also consider these factors:

  • Fees. You want to ensure that there are no fees involved with paying your loan off early. If there are, it might affect whether your refinance is cost-effective.
  • Is your car underwater? If you owe more on your car than it’s currently worth, it’ll be more of a challenge to get refinanced.
  • What’s your car’s age? Many lenders don’t do refinancing on cars that have depreciated significantly.

Sussex Honda is in Your Corner

Now that you know more about how to refinance a car loan, you can make the best plan for your next vehicle. When you want a financing department that acts as an advocate for you, Sussex Honda is the place to go. We’ll help you get the best rate and even value your trade if it’s time to trade up to something new. Ready for a new way to finance a car? Just contact us for more details on how to refinance a car loan, or visit our dealership right here in Newton.

 

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