Wondering about refinancing an auto loan or even what car refinancing is? Great! We put together this Auto Refinance 101 to help you decide what is best for you! The great news? You can refinance at ANY time! Let’s get started.
Car refinancing is when a person takes out a new car loan to pay off their original car loan. It’s smart when the new car loan helps you achieve certain goals better than the original loan (e.g. lowering payments, shortening the length of the loan). The new car loan can be with any lender (typically it is with a different lender who can offer a better loan). It’s actually MUCH simpler than refinancing a house! With FiWize, car refinancing can be done online, plus, we manage the paperwork for you.
There’s no point in spending extra dollars each month for a car loan when you don’t have to. Over time the monthly savings add up to a much larger amount. Plus, many borrowers are finding that with online lending, auto refinance has become easy! What will you do with your savings?
Think about what your goal is. Do you want to lower your monthly car payment? Do you want to pay off your car loan faster? Or just want to reduce your rate? All of these are good reasons to refinance your car:
Maybe your credit has improved since you bought your car, or your current loan term is too long, or maybe you just want to pay less each month for your car loan. Any of these are great reasons to look into what refinancing your current car loan will save you!
Most people don’t know, but you can refinance a car loan at any time (even if the ink is barely dry on the original loan)! While refinancing right after closing the first loan does create multiple credit inquiries in a short period, there is a chance that it might still work in your favor, especially if your original loan has a very high interest rate. If it has been over a year since you completed the original loan, it’s definitely worth it to get an estimate to see what an auto refinance can save you.
If it has been longer than a year since you got your original loan you may have forgotten what your interest rate is. That’s ok, just look on your loan contract. If it is generally above current advertised rates for your same loan term, now may be the best time to refinance your car.
Not sure what the current rate is? No problem. Simply ask for a no obligation quote from a lender (FiWize brings you the best quote from our network of lenders. One stop shopping!). See if the new payment is lower than what you pay today -or- see if you can pay the loan down faster with the new loan (whichever matches you goal). If the new loan is better, then move forward with the auto refinance application process. If not, then check again next time the rates go even lower.
Make sure you use a “soft credit check” inquiry (like we do at FiWize) so that getting your quote doesn’t impact your credit score.
The only true way to see if refinancing a car loan makes sense is to get an auto refinance loan estimate. There are just too many factors to be considered like the original loan balance and interest rate, credit score changes and more. FiWize is happy to provide a “no obligation” estimate so you know for sure. No pressure, no commitments… just knowledge. There isn’t even an impact to your credit score. Only then will you be able to see if your monthly payments go down without extending your loan term.
Auto refinance payment savings may be substantial; even over a thousand dollars saved in your 1st year. Every day that goes by – without getting an estimate means you may be missing out on putting money back in your pocket. Click “Get My Quote” below to get started.
You don’t need to go back to the same lender that holds your current car loan. In fact, when you submit a quote request through FiWize, we’ll canvas our network of lenders to find you the best deal. Here’s how financing a car with FiWize works:
Don’t miss out on possible refinance savings! It’s worth it just to check to see what yours might be. Have more questions? Call us, we’ll be happy to explain the details.