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What is Car Loan Refinancing In Stoney Creek?

What is Car Loan Refinancing In Stoney Creek?

Auto loan refinancing is the process of using a new Stoney Creek auto loan to pay of an existing loan. This can be useful in a variety of situations but there are also things to be aware of.


That’s what we’re discussing today.


What is auto loan refinancing in Stoney Creek?


As mentioned above, auto loan refinancing is when you apply for a new loan to pay off your existing one. This could be to lower your monthly payments, to pay the loan off early or something else.


Refinancing is most useful if you have paid off a portion of your existing loan. Enough to make it worthwhile changing.


The pros and cons of auto loan refinancing in Stoney Creek


As with most financial decisions, there are pros and cons to auto loan refinancing.


Pros of Car Loan Refinancing


Access a better interest rate – If rates have lowered since your original loan or you are using a bad credit car loan in Stoney Creek, refinancing for a better rate can be a good idea.


If you are now eligible for a much lower rate, you could save thousands over the term of the loan!


Lower your monthly payments – Refinancing can lower the overall amount of the loan and the monthly payments. This can often be enough to prevent defaulting or generally make life a little more comfortable.


Free up some finance – Refinancing doesn’t always have to be about loan reduction. If you want to borrow more and can qualify, refinancing might be the answer. If you need money in a hurry, this approach can provide the finds to get you through.


Now The Cons


Can be more expensive longer term – Loan interest is calculated over the term. Extend the term, extend the time you’re paying interest. Depending on how you’re refinancing, you may be paying more interest over the entire term of your loan(s).


A new loan may be cheaper – Refinancing is definitely useful to consider but it isn’t your only option. You may find it cheaper to sell or trade in, pay off the loan and get a new one or something else entirely. Make sure to check all your options before refinancing.


Older cars can mean higher rates – If you’re refinancing and keeping your car, you may find the interest rate goes up instead of down. Older cars seem to attract higher interest rates and this could make refinancing unworkable.


Refinancing is a personal decision but one that won’t suit everyone in every situation. As with most financial decisions, it makes sense to explore all your options and only select the one that makes the best financial sense.


If you need help or advice on anything to do with car loans in Stoney Creek, we would be happy to help.


We will use all our skill and experience to deliver the lowest possible car 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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