Should I Refinance My Car? Everything You Need to Know
Outside of buying a house, cars are one of the most expensive purchases we make. That means we usually had to take out a loan to purchase our car. Is there ever a time when it’s worth it to refinance a car?
If you’ve asked yourself the question, “should I refinance my car,” then now is an excellent time to find out how it works. How to refinance a car loan is worth knowing about and understanding. One never knows what can happen to us financially in the future.
Read on to find out everything you need to know about how to refinance a car today. You might be surprised to find out the benefits of refinancing a car loan if the future looks a bit uncertain.
Should I Refinance My Car?
There’s no getting around that most of us go through times in our lives when money gets tight. Yet there are other times when you have a bit of money tucked away. In both circumstances, you might want to consider refinancing a car note.
Regardless of your reason for considering refinancing your car, there are steps to take as you proceed to get the best financial deal possible. When you bought your car, the loan you got didn’t seal your financial fate forever. You’re not under lock and key and have to keep that car loan until the day you pay it off.
There are times you can get a better loan for a car and it’s always worth considering if you’ve been thinking about it for a while. All you have to do is meet the requirements of the new loan, and you can refinance your car loan at better terms or help you draw down equity. There are companies dedicated to finding car owners a smarter way to finance.
Refinancing a Car
In New Zealand, 72% of consumers that were surveyed had a negative experience buying their last car. If you fall into that 72% or even if you were pleased with your experience but now want to refinance your car loan, it can result in giving you a financial headache. But there are finance companies that can let you know what refinancing your car’s locked-in rate will be.
There are several situations in which it is beneficial to refinance your car loan. The most prominent one people talk about is to take advantage of lower interest rates. However, there are other viable reasons to consider refinancing your car loan and finding out how it works.
Sometimes it’s worth refinancing a car if your credit score has improved since you purchased the car. A better credit score usually means better interest rates. Some people prefer to refinance their car loans because they want a shorter loan term due to a positive or negative change in their financial situation.
Three Questions to Ask Before Refinancing Your Car
If you’re interested in proceeding and finding out more about refinancing your car, you want to ask three questions upfront. You want to find out the following:
- What will be the total amount of each payment?
- How many payments will you be required to make under the refinanced loan, and how often will you need to make them. This is when you find out if you’re expected to make them every week or month, etc.
- You want to determine what net amount you’re receiving in hand from this loan.
The rule of thumb is the shorter the loan term, the less interest you’ll be paying, no matter the current market interest rate.
How Refinancing a Car Loan Works
In New Zealand, there are a couple of things you need to refinance a car loan. You want a valid New Zealand driver’s license. You need proof of your address, and some finance companies want a bank statement that is less than thirty days old.
You’ll want to have available or bring the finance company the additional information.
- Information about your vehicles such as the make, model, year and VIN
- Details about your current loan, such as the lender, account number, and loan balance.
- Some finance companies are different than others, but most require you to bring documentation of your pay stubs or tax returns.
Sometimes it’s not worth refinancing your car loan if you find it’s not to your benefit based on fees or penalties. But if you’re in an urgent financial situation where you need to find a finance company you want to look for one with highly experienced management. You want a finance company with a solution-focused team that wants to help you with your car re-financing needs.
Benefits of Refinancing a Car Loan
When interest rates change, there is always a possibility the change in those rates is worth you taking a second look at if it saves you two or three percentage points off your loan. When that’s the case, there are significant savings over the life of your car loan when you should refinance. But even if you can’t get the lower interest rates, it’s sometimes worth refinancing if you can get a more extended repayment period to reduce your monthly car note.
Most of the time, the repayment terms run between twelve months to five years. Sometimes you can often choose if you want to pay back your refinanced car loan weekly or monthly. There are even secured and unsecured lending options in most cases.
Your Next Step for Refinancing Your Car
When you need to refinance your car, you want to know not only should you refinance but how refinancing a car works, but where should you go? It’s easy to find the answers to those questions when you know where to go. Simplify not only has the answers to those questions, but they can get you a quote in 6.2 seconds.
Reach out to Simplify when you need help determining if refinancing is a good idea for you? Simplify has the reputation, experience, and knowledge that can get you the answers you want today. But you have to take the first step and click on their website or give them a call.
Finding someone that can offer you refinancing for your car or answers if you want to draw down on your car equity can mean feeling like you have financial options. We can help you today, so why wait until tomorrow to reach out to us?