How to Refinance a Car Loan

Car key & credit card on a signed contract

By refinancing a car loan, you can lower your monthly car payments and save on interest. The Allen Turner Genesis finance team has written this guide on how to refinance a car loan so that you and other residents in the Gulf Breeze area can begin saving as soon as possible. Read below to get started!

 

Steps to How to Refinance a Car Loan

By refinancing your car loan, you may be able to lower your monthly interest rate. In order to refinance your vehicle, you need to find out your current rate and then follow the appropriate steps. We’ve shown you how to do both below: 

  1. Review your documents or contact your lender to find out your current interest rate and monthly payments. 
  2. Check your credit score. If you’ve been paying your bills on time, your score may have improved since you first took out the loan. 
  3. Find several automotive refinance companies in the Navarre area, and submit applications to all of them within a 14-day period. Doing so in that period will minimize any negative impact on your credit score. 
  4. Use our online payment calculator to compare your options. Run the numbers carefully. 
  5. Choose the option that best fits your budget and financial plans. A shorter term loan will have larger monthly payments, but last a shorter amount of time and accrue less interest. A longer term will have smaller monthly payments, but last longer and accrue more interest overall. 
  6. Once you’ve chosen an option, let them know that you’re prepared to go forward with their contract. Feel free to try and negotiate for a slightly better deal if you can use another contract as leverage. 
  7. Let the other parties know that you won’t be working with them.

You’re now ready to move forward with refinancing your vehicle. If you have any questions during the process, feel free to contact us and ask. We’ll be happy to help you. 

More Tips for Refinancing Your Car

These tips can also help you to decide whether or not to refinance your car: 

  • Extra Fees: Some contracts require you to pay a fee if you try to pay the loan off early. Check carefully, because not catching this can add an unexpected financial burden later on.
  • Upside-Down Car Loan: If you owe more on your vehicle than it’s worth, you’re “upside-down” on your car loan. In this case, refinancing becomes much more difficult. 
  • Older Vehicle: Some older cars experience major depreciation in value. Many lenders in the Mobile, AL area and beyond avoid refinancing those kinds of cars. 

In one of these situations? Contact or stop by our finance center in Pensacola; we’ll be able to give you expert advice.

Allen Turner Genesis is Ready to Help You Refinance Your Car

Our financial experts are ready to help you with refinancing your car, or if you’ve decided you want a new car instead, you can value your trade with us online. Learn more about the car financing process with our car-buying guide, or visit us in Pensacola to speak with our expert financiers one-on-one.

 

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