How do You Refinance a Car Loan?

Sacramento drivers who are driving financed vehicles may have heard that it’s possible to save on monthly payments by refinancing. But how do you refinance a car loan, and what is the best way to refinance a car loan? There are a few factors at play, so the finance center at Kareem Auto Sales Inc breaks it down below!

What to Know When Refinancing Your Car

The trick for how to refinance a car loan is gathering the right information and learning commonly-used terms in the refinancing process. So here’s what to know when refinancing your car in Elk Grove:

• Credit Score: As you may have expected, your credit score comes first on our list of what to know when refinancing your car. Even if you first financed your car with no credit, there’s a good chance you could have improved it with regular payments!

• Fees: You’ll want to check your loan for any fees that may be associated with paying your loan off early. These fees could make refinancing a bad idea.

• “Underwater” Loans: A loan goes “underwater” once the current balance exceeds the value of the vehicle. In this situation, it isn’t as likely that you can find a way to refinance your car loan.

• Vehicle Age: If you’re wondering about the best way to refinance auto loans, older vehicles may post some difficulties. Instead, maybe consider trading in your financed car.

Now that we know some basic facts and terminology, let’s answer the question: How do you refinance a car loan?

Best Way to Refinance Auto Loans

The best way to refinance auto loans in Roseville is to know all you can about your vehicle and payment history before you apply. Once you have that, knowing how to refinance a car loan involves a few simple steps:

• Submit Multiple, Timely Applications: Apply to a few Folsom dealerships and lenders, but make sure all your applications take place over a 14-day period. That way your credit score won’t be adversely affected by your applications.
• Evaluate Offers and Decide: With multiple applications you have more choice in the matter of refinancing. Decide on your ideal payment plan, loan term, interest rate, and any other factors involved.

Get Financing at Kareem Auto Sales Inc

At Kareem Auto Sales Inc, we want to empower Sacramento-area drivers with resources about car financing and more. Use our online tools like our payment calculator or value your trade if you want to save some money on your next vehicle. Contact us today with any questions about how to refinance a car loan and anything else related to financing!