Should you keep your car loan the way it is, or refinance your vehicle? There are several scenarios that make it worthwhile to consider refinancing a car loan. If you are wondering if or when you should refinance your auto loan, here are a few situations where it might be warranted.
Divorce. If you are divorcing and separating assets, you will want to make sure that the only name on the auto loan is that of the person who is actually in possession of the car. If your name is on as co-owner of a vehicle you no longer have access to after the divorce, you are still liable for payments on that loan if the other person defaults. Also, should the car become damaged or even totaled in an accident, anyone whose name is still on the title is responsible to pay any deductibles that apply.
Change in financial situation. If you experience a traumatic life event such as a job loss or unexpected medical expenses, you could significantly lower your monthly car loan payments by refinancing your auto loan. By extending the term of the loan, your monthly payments will be smaller and more affordable. You may also be able to secure a lower interest rate, thereby saving even more every month. If your financial situation improves, you can always make more than the minimum monthly loan payment and pay the balance off sooner, saving even more interest.
Improvement in your credit score. Since your credit score has a great deal to do with the interest rate you receive on your auto loan, it may be a good idea to look into refinancing if your credit score improves significantly. A new loan (refinance) pays off the balance of your current auto loan, and can lower your payments and garner you a better interest rate. Continuing to make the new, lower payments on time will only boost your credit score even more.
If you want to refinance your auto loan and free up some cash to enjoy, reach out and contact us today at (866) 683-5505 or Apply Now, and let us help you put some cash back in your pocket as soon as possible. Our refinance process is quick and easy, simple, and convenient. We handle all of the details for you, and get you back on the road. We save our clients an average of $112 per month and $5,000 in interest over the life of their loan, in most cases.
Contact us today and let’s see how much money we can save you when you refinance your auto loan with us.