How to Refinance a Car Loan

in house car dealers

If you live in Madison, you may be looking to refinance your car loan to save on interest and lower your monthly rates, or you may be wondering how soon you can refinance a car loan after purchase. Our guide will walk you through the process of refinancing your loan and seeing if you’re eligible. Visit our Ridgeland dealership and speak with our finance center for more information.

How do You Refinance a Car Loan?

When you’re refinancing a car loan, your goal is to lower your interest rate. To do this, you need to refer to your documents or speak with your lender to see what your current interest rate and monthly payment is. Once you have that information, follow these steps:

  • Check Your Credit Score: Even with a low credit score you can refinance your car loan. Do you pay all your bills on time? If so, this will improve your credit score and increase your chances of having your loan refinanced in Jackson.
  • Start Applying: Contact and apply to automotive refinance companies to find the best rate. Complete and submit your applications within a 14 day period to maintain your credit score.
  • Evaluate Offers: Calculate your interest rate and payments and make sure that your new offers get you the monthly payment you want. Our online monthly payment calculator can help you compare offers.
  • Decide The Loan Term: If you have good credit or bad credit, part of refinancing your car loan is deciding if a long term or short term loan is best. A short term loan will require larger monthly payments, but you will pay less interest. With a long term loan, your monthly payments are smaller, but you will pay more in interest.

What to Know When Refinancing Your Car

Refinancing a car loan in Brandon can be a confusing process, here are some things to remember when you refinance:

  • Fees: Check your original car loan to make sure there are no fees for paying off your loan early or refinancing it. If there are, refinancing may not be the right option.
  • Underwater Finances: If you owe more than your vehicle is worth, it can be difficult to get a refinance loan approved.
  • Older Vehicles: Many lenders won’t refinance an older car that has significantly depreciated in value.

If you’re facing one of the above situations, have bad credit, or are trying to refinance a loan soon after purchasing your car, our finance team at Acura of Jackson is here to guide you through the refinancing process and find the best financing terms for you.

Learn About Your Financing Options at Acura of Jackson!

Whether you’re refinancing your car loan after a few years, or a few months after you purchase your new or used car, our finance experts at Acura of Jackson are here to help. Contact us to learn about the refinancing process or financing at a dealer vs. independent car lots and we will go over your options with you to help you understand the process and bring you peace of mind.

Acura of Jackson 32.403960, -90.144650.