Question: When Should You Refinance Your Car Loan?

Question: When Should You Refinance Your Car Loan?

You do not need to wait any minimum amount of time before refinancing your car loan.

You just have to meet all the requirements for the new loan in order to refinance.

You can refinance immediately after buying—even before you make your first monthly payment.

What happens when you refinance a car?

Refinancing a car means a new loan is used to pay off an existing one, with the vehicle as collateral. Reduced monthly car payments – A refinanced auto loan might lower your monthly car payment as a result of a lower interest rate or a longer loan term, or both.

Can you refinance a car loan if you are behind on payments?

You can carry out an auto loan refinance deal to ensure you pay off your car loan. But they will want to know the reason for the inability to pay. Most lenders have a policy of deferring payments for 30 days to give you a chance to catch up with payments. Please note that not all lenders have loan extension plans.

Photo in the article by “George W. Bush White House”