Consider refinancing an existing auto loan to lower the amount of interest you pay over the life of the loan. You could also lower your payment by getting a lower interest rate or changing loan term.
A credit score can improve after getting an auto loan that shows a good history of making installment payments. This improvement in credit can mean a lower interest rate than what you are paying now on an auto loan.
Getting a loan at a used car dealer is usually not going to give you the most favorable terms and interest rate. You could be overpaying. Because of this, it’s important to shop around for auto rates because that way you are guaranteed a great rate.
Since there’s no obligation or hard credit check when you check your rate, it makes sense to see if you can lower your car loan’s interest rate or payment.
There are many great benefits to refinancing an auto loan.
- Refinancing your auto loan with a personal loan can offer lower interest rates. You may have received a high rate the first time around because dealer-sourced vehicles typically have higher rates. Refinancing with personal loans can give you the chance to lower that rate.
- Refinancing your auto loan into a shorter term could not only help lower your interest, it could lower the total amount of interest you pay.
- Refinancing is available with an unsecured auto loan that has a fixed rate and set payment schedule. You can make extra payments toward the principal at any time, which reduces the total interest paid.
Use our Auto Refinance Calculator to see how much you could save by refinancing your auto loan.