How Do You Refinance a Car Loan?

If you are interested in having a lower monthly car payment and saving on interest costs, then explore what to know when refinancing your car. Our Ideal Auto team covers all you need to know about refinancing your auto loan so you have all the information you need. Keep reading to learn about refinancing a car loan with your Williston dealership. 

How to Refinance a Car Loan

Ultimately, refinancing helps you lower your interest rate and the amount you’re being charged each month. You need to know what you are currently paying in order to do this. Look over your documents or contact your lender to learn the interest rate and monthly payment you are making. After you have all of the current payment information, you can: 

• Check Your Credit Score: When you pay all of your bills on time from the time you purchase your vehicle, you will have improved your credit score, and you can benefit from refinancing your vehicle. 
• Start Applying: You can apply to multiple refinance companies to be sure you get the best rate. Be sure to submit all of the applications within the same 14 day period so you can minimize the impact you make on your credit score.
• Evaluate Offers: Always be sure to run the numbers so that you can know you will get the monthly payment you are hoping for. You can use our online payment calculator to compare the offers. 
• Decide Loan Term: If you want a longer or shorter term loan, you will need to assess what fits your situation best. A short term loan requires larger monthly payments. You can pay less interest in total. A long term loan will leave you with smaller monthly payments, but more goes towards your interest rates. 

There are specifics you need to look into depending on your financial circumstances. Make sure that the offers and terms work for your situation. 

What to Know When Refinancing Your Car

The best way to refinance auto loans involves keeping a few things in mind that can help you decide how to refinance a car loan in your particular scenario: 

• Fees: Explore the specifics of your auto loan to be sure there aren’t any fees associated with paying off the loan early. If there are then refinancing might not be a wise financial decision. 
• Underwater Finances: If you owe more than what your vehicle is worth, then it will be more difficult to get approved for refinancing. 
• Older Vehicles: Oftentimes older vehicles can’t be refinanced if they already have a large amount of depreciation.

If you are in any of these situations, you can contact our finance team at Ideal Auto. We are happy to give you any advice and help guide you to the best situation for your circumstances. 

How To Refinance a Car Loan with Ideal Auto

Our finance experts outside Bismarck and New Town are happy to share what to know when refinancing your car. If you still have questions you can contact us today to speak with our team.