You love your car. It gives you mobility, the ability to transport things and incredible autonomy. But maybe there’s one thing you’d like to change—the monthly loan payments.
Have you ever considered refinancing your current car loan? It’s quick and simple and you can apply in minutes.
- To Get a Better Deal
Perhaps you’re seeing advertisements for more favorable interest rates. Or sometimes, you just want to get out from under the terms of your original finance deal. Maybe you made the purchase on the spur of the moment. Or negotiations went badly. Whatever the case, if your original car loan interest rate is above what you are seeing advertised, you should shop for a refinance loan. The length of time you have had your current loan should not impact applying to refinance. Now’s the time to refinance with Tower to possibly lower your rate and therefore, lower your monthly payment.
- To Change the Length of Your Loan
If you want to lengthen or shorten the term of your loan, an auto refinance is a great way to do it. Say your original financing was for four years, but your loan payments are straining your budget. With a refinance, you may be able to stretch the payments out to five years (or more) to come up with a monthly payment that’s easier to make.
- To Move It to a Trust Worthy Financial Institution
Whom do you trust with your new loan? Some say it’s important to avoid places that act as agents for other lenders, such as car dealerships. To cushion their profit, many of these middlemen mark-up the financing offers before presenting them to you. Credit unions currently dominate the auto refinance space, according to consumer credit reporting agency TransUnion—accounting for the majority of auto loans that are refinanced.
- To Take Advantage of Today’s Lower Rates
It’s easy to overlook the cost of your loan. And rates on auto loans have edged lower. Car buyers who didn’t get the best terms in the past year or so can refinance their loans, benefitting from today’s rates.
What are the steps to refinance a car loan?
Applying for auto loan refinancing is an easy process. You start with a loan application—the lender will take the information from the loan application and combine it with what they learn from your credit report. Any paperwork or documents you are required to sign are submitted digitally, making the process more convenient.
The lender will make a decision on whether or not to loan you the amount of money that you are seeking, and determine the terms that will apply to the vehicle loan. Lenders like Credit Unions will counsel you on how to best reduce your monthly payment. That lender will pay off the original loan for you, and you will begin payments with your new lender.
Page Last Reviewed or Updated: July 1, 2021
Resources: USNews.com, Autotrader, Inc.