While your auto loan was the best you could do at the time, things have changed. It makes sense to see if choosing to refinance car loan would be the right move. If any of the following three factors apply, choosing to refinance the loan is something you want to seriously consider.
You Can Get a Better Rate of Interest Now
At the time you received the original loan, your credit was in poor shape. While the score is still not where you would like it to be, the rating is much better. In fact, you suspect that it would be possible to refinance the remainder of the current loan and lock in a more competitive rate. Some quick inquiries proves that you’re right. Assuming the cost of refinancing won’t wipe out all of the savings, it’s worth the time and the effort.
You’re In a Better Place Financially
Money was tight when you bought the car, so you went with a lender who could offer a payment plan that was within your means to manage. Now that you’ve paid off some other obligations and got a raise, there’s more money to devote to the car payment. You may find that choosing to refinance car loan not only allows you to lock in a lower rate of interest. The monthly payment will allow you to shorten the term and still not put much of a crimp on the household budget.
The Lender Offers Better Terms
While the duration of the loan and the interest rate are important, there’s one more factor to consider before you refinance car loan. Will the refinanced loan come with fewer fees and charges? If so, that will make the deal even better for you. Over the life of the loan, you will pay less. That means you will have more of your monthly income to devote to other activities, including depositing more funds into a savings account.
Would refinancing be beneficial for you? Call Canada Auto Experts today and let’s find out. With the right type of arrangement, you can retire the old loan and have a new one that serves you well.
