How to Refinance a Car Loan

When adjusting their budget, some Miami drivers consider refinancing their car loan to lower their monthly payments and interest. But many people are overwhelmed by all the factors involved when thinking about the best way to finance an auto loan. Toyota of North Miami’s finance center has gathered vital information so you can make an informed decision about your car’s financing 

How Do You Refinance a Car Loan? 

Refinancing a car loan lowers your interest rate so that you have some relief on monthly payments. This is an extremely useful and important means of saving money, especially if you’ve been keeping up with all of your payments. Here’s what to know when refinancing your car:

• Credit Score: If you’ve been paying your car bills and your other bills on time since you started taking your car out on North Miami Beach roads, there’s a good chance your credit score has improved. Check your credit score — a higher score leads to lower payments. 
• Apply in a timely fashion: Applications for certain places can impact your credit score, so applying to companies with a 14-day period can offset any risk. 
• Compare Offers: Tools like our payment calculator are great ways for Homestead car-buyers to figure out what offer works best for them. . 
• Decide how long you want your loan: When thinking about how to refinance a car loan, many start with an ideal timeframe for their loans. Lower payments can look great but stretch out your car payments for a long time.

How to Refinance A Car Loan: Other factors at play 

Many factors are at play in refinancing. Here are some that Sunny Isles Beach drivers should keep in mind: 

• Fees: Closely read your original car loan – there may be fees associated with paying off your car early. You don’t want to be surprised with hidden fees! 
• “Underwater” Loans: The phrase “underwater” applies to financing when you owe more than your vehicle is currently worth. 
• Depreciation: Age comes to all vehicles, and older cars are not going to be as eligible for refinancing.

Explore Financing Options at Toyota of North Miami

Drivers from Miami to Sunny Isles Beach that want to know more about refinancing their loans and saving money can contact Toyota of North Miami. We’re dedicated to helping drivers find the right payment plan for them and assisting those with car loans with the info they need. Continue reading our website for other car buying tips or information on how to lease. And stop by today to talk to our car financing experts!