When can you benefit from an auto loan refinance?
If car loan rates have dropped since you bought your automobile, if your credit rating has improved substantially since then, or if you neglected to shop carefully for your current auto loan, you might be able to improve on its rate or terms by refinancing.
Refinancing costs are minimal
Unlike refinancing a home loan, there are very few costs associated with refinancing an automobile loan. Your main consideration, in that case, is if you can get a better rate than the one you have. Shopping for a refinance is less complicated than shopping for a car, and you can easily get auto refinance quotes online. Keep in mind that, in general, rates for used car financing are higher than those for new car financing – so specify a used car or car refinance rate when you compare auto loan quotes. Finally, consider taking out a refinance loan with a shorter term to save even more – in general, the shorter the term, the lower the rate.