Are you finding it difficult to keep up with your monthly car payments in New Orleans? Refinancing your auto loan to get lower monthly payments and savings on interest might be a great option for you. Learn more about the refinancing process to determine if this is the right move for your situation with our guide to how to refinance a car loan, below.
When you refinance a car loan in Metairie, the end goal is to lower the interest rate you’re being charged every month. This means you’ll need to know what you’re currently paying. If you’re unsure, you can review your documents or get in touch with your lender to confirm your interest rate and monthly payments. After obtaining this information, take the following steps:
Check Your Credit Score: If you’ve kept up with timely bill paying since purchasing your vehicle, there’s a good chance your credit score has improved and you could benefit from refinancing.
Start Applying: Apply to several automotive refinance companies to find the best rate possible. Be sure to submit your applications within a 14-day period to keep the impact on your credit score minimal.
Evaluate Offers: If you receive new offers, take the time to run the numbers and ensure you’ll get the new monthly payment you’re looking for.
Decide Loan Term: You’ll need to determine if a long-term or short-term loan best suits your situation. A short-term loan requires larger monthly payments, but you’ll pay less interest overall. A long-term loan brings smaller monthly payments, but you’ll pay more interest overall.
At the end of the day, the best way to refinance an auto loan depends on your unique situation, so you should be absolutely sure that any offer or term you choose will truly work well for you before accepting it.
What to Know When Refinancing Your Car
Before you move ahead with refinancing your auto loan in Gretna, there are a few key factors to keep in mind:
Fees: Review your original auto loan to ensure there aren’t any fees you could incur by paying it off early. If this is the case, refinancing might not be a cost-effective option.
Underwater Finances: Do you owe far more than your vehicle is currently worth? You may find that it’s harder to get approved for refinancing in these cases.
Older Vehicles: If you’re behind the wheel of an older model that has already experienced significant deprecation, some lenders may not want to work with you on refinancing
Learn More About Your Financing Options at Leson Chevrolet
If you are still having trouble determining whether refinancing is right for you, we encourage you to contact us with questions! Our friendly finance team will be happy to assess your situation and guide you toward the option that best suits your circumstances. For additional finance help, like what credit score is needed to finance a car, or car repair financing, check out more of our finance tips online!