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Car Loan Refinancing In Niagara Falls - Pros and Cons

Car Loan Refinancing In Niagara Falls - Pros and Cons

Car loan refinancing in Niagara Falls can be a useful way to raise money, consolidate debt or change the terms of your current loan. It won’t be suitable for everyone though, which is why we thought we would put together a list of the pros and cons of auto loan refinancing.


Our Niagara Falls auto loan term has outlined everything you need to know on the subject.


Car Loan Refinancing in Niagara Falls


As is our way, rather than telling you what to do, we’ll provide a list of pros and cons on a subject. That way, you can assess whether a particular option is right for you or not.


If you need further help, don’t hesitate to contact our team. We would be happy to help.


Pros of auto loan refinancing


There are several benefits to refinancing a loan, here are just a few:


Free up some cash to use however you like – Need money for an emergency? Need home repairs or cash for something? If you have equity in your car, you can refinance your auto loan to raise some cash.


Lower your interest rate – If you’re paying a higher rate on the loan and have improved your credit score or prime rates have lowered, you could save money by getting a lower rate.


Lower your monthly payment – If circumstances have changed or you need to lower your payments you could get a new loan for a lower amount or extend the term for lower monthly payments.


Cons of auto loan refinancing


There are downsides to everything, including auto loan refinancing in Niagara Falls.


Loan for longer – Some people are comfortable having loans while others just want to get them paid off as quickly as possible. If you’re one of the latter, refinancing is not your best option.


Longer loan means more interest – Loan interest is calculated over the term. The longer the term, the more interest you’ll pay. The rate may be lower but the overall about will usually be higher.


Some loans come with fees – Some loans charge fees while others don’t. If yours does, the more you refinance, the more fees you’ll pay.


Can require having equity in the car – Some types of refinancing, to free up cash for example, requires having equity in the car. That may mean being a couple of years into the loan or having paid a significant down payment.


As you can see, there are pros and cons to auto loan refinancing. It can work for a lot of people but not for everyone.


You need to give it careful thought before jumping in as while it may seem like the perfect answer, it might not be.


If you’re unsure or would like help deciding if auto loan refinancing is for you, contact our Niagara Falls auto loan team to discuss your situation.


We will use all our skill and experience to deliver the lowest possible Niagara Falls auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


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Categories: Auto Loan

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