How to Refinance a Car Loan

Soaring inflation has many St Louis residents researching how to refinance a car loan for a better interest rate so that they can get a lower monthly payment. But, how do you refinance a car loan? Ourfinance department wants to keep you informed, so let’s discuss the best way to refinance an auto loan and what to know when refinancing your car below!

How Do You Refinance a Car Loan?

Refinancing a car loan can be a great option for Jefferson County drivers whose credit scores have increased since they first took out their car loan. So, how do you refinance a car loan? It all starts with a little homework and understanding of your own financial situation.

How to Refinance a Car Loan in 4 Steps:

1. Pull your credit report, and fix any issues that are negatively impacting your credit.
2. Figure out what your monthly payment should be. Our carpayment calculator can help with that.
3. Get pre-approved. We can help with that as well.
4. Shop around for the best rate. Applying to only one lender is not the best way to refinance an auto loan. Fortunately, our finance department knows how to refinance a loan by dealing with multiple lenders. What’s more, we’re able to leverage our relationships with those lenders to get our customers the best rates.

What to Know When Refinancing Your Car

As with anything else, there are downsides to refinancing a car loan. The best way to refinance an auto loan is to know what to expect before you apply.

What to Know When Refinancing Your Car:

• You will probably only get a better rate if your credit score has improved.
• Your old lender may charge a prepayment penalty.
• Your new lender will likely charge fees on your new loan.
• Some states will require you to re-register or transfer the title of your car (more costs).
• You may not save money or qualify for a new loan if your car is older than eight years, has over 100,000 miles on it, or you now owe more than the car is worth.

Let Suntrup Nissan of St. Louis Help

Our finance department would be happy to walk you through your loan options. So, sit down and talk with us. If you found this guide on how to refinance a car loan to be helpful, check out our tips onhow to finance car with bad credit andhow car financing works. Remember, we’re just down the road from St Charles, and we’re here to help. So, drop by or contact us today.