Refinancing Your Auto Loan – What Does That Mean?
Refinancing your auto loan can save you hundreds and sometimes even thousands of dollars. But what exactly does refinancing mean?
When you refinance your auto loan, you pay it off with a new loan at a lower interest rate from a different lender. The new loan should either lower your monthly payment or help you pay off your auto loan faster. If the rate is a lot lower, you may be able to do both.
Lower rates, usually equal lower payments. This is especially helpful if your income has decreased and you need more room in your budget.
Paying off your loan early
Sometimes refinancing helps you pay off your loan faster. That could mean increasing your payment slightly, but saving a ton. Because you are paying less to borrow money, that slight increase could take a year or more off your auto loan.
How it Works
- Start by applying for a used auto loan on our website.
- You will need to know the payoff balance on your current loan, which must be from another lender.
- Once approved, you will sign loan documents and select a payment date.
- We use the money you just borrowed from us to pay off your loan at the other lender.
- You start making payments to us.
It’s that simple and it could save you a lot of money both now and down the road.