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How to Refinance a Car Loan

If you want to lower your monthly car payments and interest rates, then you should consider refinancing your car loan. If you’re like many newer Watertown car owners, then you might not be familiar with refinancing. No need to worry, since the finance center at Brookings Auto Mall has put together a guide on how to refinance a car loan. Learn how you can lower your monthly payments and interest rates with Brookings Auto Mall.

What to Consider When Refinancing

How do you refinance a car loan? There are a few key variables that you’ll need to keep in mind when you go about refinancing your auto loan. Here’s what to know when refinancing your car:

  • Vehicle Age: The older the vehicle, the more depreciation has occurred. Because of this, many Brookings lenders may not refinance an older vehicle.
  • Penalty Fees: Some lenders may charge a penalty fee for paying off a loan early, so you’ll want to check with your lender.
  • Current Debt/Other Finances: If your vehicle’s current value is less than what you still owe on the vehicle, then it will be harder for you to get approved for refinancing.

It’s important to know where you stand in these areas when you’re considering refinancing. Contact the finance team at Brookings Auto Mall to explore your options.

Best Ways to Refinance an Auto Loan

Ideally, you’re refinancing your auto loan to lower the interest rate and payments for each month. To do this successfully, you’ll need to know what you’re already paying. You can find this amount in your monthly statements or by asking your lender. Once you know what you’re currently paying, here is how to refinance your car loan:

  • Know Your Credit: Paying your bills on time can help improve your credit score. A higher credit score will improve your chances of getting refinanced.
  • Apply: Apply to different refinance companies in both Mitchell and beyond, and try to apply within a 14-day window so you don’t negatively impact your credit score.
  • Compare: Compare the numbers from each refinance company to see which one will offer you the best deal.
  • Determine Loan Length: A longer loan term means smaller monthly payments but higher interest. A shorter loan term means higher monthly payments but smaller interest.

There are plenty of things to know when refinancing your car and plenty of options. However, the best way to refinance an auto loan will depend on your current circumstances and what works for you.

Get the Financing You Need with Brookings Auto Mall

Now that you know how to refinance a car loan, you can visit Brookings Auto Mall to explore your options. Contact us to speak with a team member and even apply for financing to get started.

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