When you refinance your auto loan, the lender qualifies you for credit and assesses your vehicle's eligibility for financing. Once you've been approved, the lender issues a new financing contract for the amount owing and then pays out your current car loan in full.
Why Car Loan Refinancing can be Beneficial
There are good reasons why you should refinance your vehicle, whether you've purchased your car with non-prime rate or not.
Lower Interest Rate
If you have been making timely payments on your car loan, your credit score will have improved. This means you can qualify for more favourable interest rates.
Lower Monthly Payment
You can have the option to extend your loan's financing term to reduce your monthly payment. This can help borrowers who are in financial difficulties be more comfortable.
Remove a Co-signer
If a co-signer was originally mandatory for you to qualify for your car loan, you will have the option to remove them through refinancing.
Should I Refinance My Vehicle?
If you make timely payments for over a year, you can benefit from refinancing.
Did you improve your credit score?
If your low credit score caused you to originally receive your auto loan with a high interest rate, then refinancing is right for you. Your new and improved credit score from consistent loan payments will get you approved for a lower interest rate through refinancing.
Has your financial situation changed?
If you have been earning more since you got your auto loan, or have been reducing your debt significantly, your improved debt-to-service ratio can qualify you for better financing terms.
Refinance Your Vehicle Today
With our Auto Experts on your side, we work to get you the best rates. Take less than 3 minutes to complete our online application. We only ask for information we need.