How to Refinance a Car Loan

handing customer a car key

Looking to lower your monthly auto loan payment amount and save on interest? If so, refinancing might be a great option! But there’s a lot to know about the process before moving forward. Here, the finance team at Aston Martin Houston covers what to know when refinancing your car, so you can make a smart financial decision. Find out how to refinance a car loan in San Antonio, below!

How Do You Refinance a Car Loan?

When refinancing a car loan, the goal is to lower the interest rate you’re being charged each month. As such, you’ll need to know what you’re currently paying before you can get started. Look over your documents or get in touch with your auto loan lender to confirm your current interest rate and monthly payments. After gathering this information, you can take the following steps:

  • Check Your Credit Score: Have you been diligent about paying all your bills on time? If so, your credit score has likely improved over time and refinancing could be very beneficial to you.
  • Start the Application Process: Apply with several automotive refinance companies so you can compare multiple rates. Just be sure to limit your applications to a 14-day period so your credit score doesn’t take a hit from hard credit inquiries.
  • Assess Your Offers: Ensure the new offers you’re receiving will actually secure you the monthly payment you desire. To help you compare offers, utilize our online monthly payment calculator!
  • Choose a Loan Term: Is a longer or shorter loan term right for your unique financial situation? This is an important decision you’ll need to make when refinancing. Keep in mind: A shorter term loan requires larger monthly payments, but you’ll pay less total interest, while a longer term loan offers smaller monthly payments with more interest paid overall.

What’s the best way to refinance an auto loan? The answer will vary between individuals and depends on your unique circumstances. This is why it’s so important to put in the research time to be absolutely sure that any offer or term you choose will be beneficial to you.

What to Know When Refinancing Your Car

When determining whether refinancing your car is right for you, there are a few additional factors to consider:

  • Fees: You will want to check your original car loan to make sure there aren’t any fees associated with paying it off early. If there are, refinancing may not be cost-effective.
  • Upside Down Finances: Do you owe more on your vehicle than it is currently worth? You might find it more difficult to get approved for refinancing if you’re upside down on your loan.
  • Vehicle Age: Older vehicles have already undergone significant depreciation, which turns many refinancing companies away.

If any of the above situations apply to you, we welcome you to visit the finance center at Aston Martin Houston near Sugarland. Our friendly finance professionals will review your circumstances with you, and can provide advice and guide you to an option that will better suit your needs.

Explore Your Options with Aston Martin Houston

Have lingering questions surrounding how to refinance a car loan and whether it’s a good option for you? Contact us or visit us at our showroom near The Woodlands for answers you can trust. Our finance team is always happy to provide advice on refinancing, meeting the requirements for a loanfinancing with no credit, car payment deferment, and more.

Aston Martin Houston 29.783246, -95.442392.