How to Refinance a Car Loan

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Do you want to know how to refinance a car loan? If you need to lower your monthly car payments and save on interest, refinancing your car loan is likely your best option. At Edwards Kia, we can help you learn how to refinance a car loan. Here, we cover the best way to refinance an auto loan, and if you have questions, contact a member of our finance team

How Do You Refinance a Car Loan?

If you wonder what to know when refinancing your car, you’ve come to the right place. The goal of refinancing a car is typically to lower your interest rate and get a lower payment each month. First, you need to know what you’re currently paying. Review your loan documents or contact your current lender to confirm your interest rate and monthly payments. Then, proceed with the following:

  • Check Your Credit Score: Hopefully, you’ve been paying all of your bills on time since you bought your vehicle and if so, there is a good chance your credit score has improved.
  • Start Applying For Auto Financing: Apply to several lenders to ensure that you get the best possible interest rate. Do your best to submit all applications within 14 days to minimize the potential negative impact on your credit score.
  • Thoroughly Evaluate Offers: Take the time to evaluate the numbers on any new offers coming back to the monthly payment you need. You can use our online monthly payment calculator to help you compare the offers. 
  • Decide on a Loan Term: Decide if a more prolonged or shorter-term loan is best for your financial situation. A shorter-term loan will require a larger monthly payment, but you’ll save on interest in the long term. With a longer-term loan, your monthly payments will be less, but you’ll pay more in interest in the end. 

The best way to refinance an auto loan depends on your unique circumstances, so take the time to make sure that any offer you choose works for your situation. 

What to Know When Refinancing Your Car

There are a few other things you should know when refinancing a car: 

  • Prepayment Fees: Check your original car loan documents to ensure there aren’t any prepayment fees if you pay your loan off early. If there are, refinancing may not be a good option. 
  • Underwater Finances: If you owe more than your vehicle’s current value, it can be more challenging to get approved for refinancing. 
  • Older Vehicles: Many lenders can’t refinance an older car that has already experienced significant depreciation. 

If you’re in any of these situations, contact the finance team at Edwards Kia. Our experienced finance specialists near Bellevue, NE can advise you and guide you to the best way to refinance an auto loan.

Explore Your Financing Options at Edwards Kia

We know that you want the Kia of your dreams at a payment you can afford for your La Vista, NE commute. Our team will make your car dreams come true and take the hassle out of auto financing. If you have questions, contact us today!

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