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3 Reasons to Refinance a Car Loan in Hagersville

3 Reasons to Refinance a Car Loan in Hagersville

Our auto loans department has been fielding a few calls over the past week or so around auto loan refinancing. It seems an upward trend with more queries than usual, which prompted this quick explainer post. We asked our Hagersville auto loans team to explain the 3 main reasons to refinance a car loan, these would be the situations in which it would make the most sense to do so.

 

This is what they came up with.

 

Refinance to lower your monthly payments

 

Refinancing an auto loan to lower the monthly payments is a very common reason for wanting to do it. It’s probably the most common reason to refinance a car loan.

 

You can refinance for a lower amount using any equity in the car to lower payments.

 

You can also refinance for a longer term, stretching the loan out further to lower payments.

 

Both are viable reasons to refinance a loan if the situation requires.

 

Refinance to get a lower interest rate

 

Refinancing an auto loan in Hagersville to get a lower interest rate is also a common motivator for change. As long as the drop in rate is significant enough to make it worthwhile, it’s another viable reason.

 

If market rates drop enough so new loans are cheaper than your existing loan, that could be worth doing.

 

If you have improved your credit score and have a bad credit car loan and could now qualify for a standard loan at a much lower rate, that’s another good reason to refinance.

 

Refinance to change the terms of the loan

 

Refinancing to change the terms of the loan is a common way to remove a cosigner, co-borrower or any other restrictions a loan may have. This is less common but still a good reason to consider refinancing.

 

You can refinance an auto loan to remove a cosigner if your credit score has improved enough to qualify on your own.

 

You can refinance to remove a co-borrower for the same reasons. For example, if you have split from a partner and have agreed you get the car, you can refinance to remove their name from the loan and switch the title to you.

 

These reasons aren’t as common as lowering payments or getting a lower rate but they are just as feasible!

 

Refinancing an auto loan in Hagersville

 

The refinancing process is simple. It’s almost identical to getting a new loan but involves using the settlement figure from your old loan instead of the value of the new car.

 

Check your credit score, get a down payment together if you’re using one, contact your current lender to tell them what’s going on and to get a settlement figure, qualify for the new loan and apply for it.

 

Once agreed, your new lender will pay off your old one and you’ll switch your payments over to the new loan. It’s that easy!

 

Refinancing isn’t for everyone or every situation, but it can work for most people. If you need help deciding if it’s right for you, contact one of our team.

 

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

 

 

Categories: Auto Loan

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