Have you built up your credit or started a new job, but you’re still dealing with an old auto loan plan? You may consider applying for auto loan refinancing and finding out how much you could save with a new loan. Refinancing isn’t for everyone, though, so check out these tips from us at Hall Chrysler Dodge Jeep® RAM Virginia Beach to make sure it’s a fit for you.
What Is Refinancing?
When you refinance, you’re taking out a new loan to cover the remaining balance of your original car loan. If you’ve been rebuilding your credit or are in an improved financial situation since your original application, that means you may be offered better interest rates and other terms. However, refinancing can come with its own costs, so you may end up spending more if there hasn’t been a dramatic change.
Is Refinancing Right for Me?
Before you commit to a refinancing plan, make sure you factor in any additional fees or costs that may be involved. Refinancing counts as paying off your original loan early, and your financier may have an early-payoff fee that you’ll need to budget for. If your credit hasn’t improved enough that you receive substantially better offers, you may still save more with your original plan.
How Do I Refinance a Loan?
Refinancing a loan is a lot like the process of applying for a loan for the first time. You can compare multiple financiers and offers, also ensuring you have your proof of income and other financial statements on hand. Once you’ve selected a plan, your lender may send you the money, but often as not, they’ll simply pay the loan off on your behalf.
Refinance Your Loan in Virginia Beach, VA
Refinancing a car loan is a great way to access better interest rates and shorter terms. Find out more from our expert team at our Virginia Beach dealership. Talk to our team about whether financing is right for you and apply for a new loan today!
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