A Simple Guide to Refinancing Your Auto Loan
Written by
Stacey Bumpus
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If you want to refinance your car but don’t know how to get out of your current auto loan, you’ll be happy to know the process is very easy. In a few simple steps, you’ll be enjoying a new interest rate and lower monthly payments. Let’s look at how you can get it done:
- Step #1: Find an auto loan at a great rate. What’s exciting about searching for a new auto loan is that much of the information can be found online. By searching various websites, you can compare interest rates, loan terms, and repayment periods to decide which appears to be best for you.
- Step #2: See if you qualify. Once you’ve found a rate that looks best for you, you can usually apply directly on the website to determine whether you qualify, and if so, whether the rate stays the same after supplying your credit information, as well as other personal details.
- Step #3: Pay any necessary fees. One step in refinancing your car that you may not consider is paying fees such as lien holder fees, prepayment fees, and re-registration fees. All of these must be taken care of before the lender will refinance your auto loan.
- Step #4: Pay off your current loan. When refinancing your car, the lending company gives you a check for the remaining balance of your auto loan. By paying off your debt to the original dealer or lending company, you eliminate your connection with them. Now you have created a new relationship and will be required to pay back this new lender.
- Step #5: Transfer the title to the new lender. After the car has been refinanced, the new lender will be the temporary owner until you pay back your debt. As a result, the title will need to be transferred to them.
In five easy steps, you have successfully pulled out of your old auto loan. So if refinancing your car is on the agenda, keep in mind just how easy it can be for you.
***And remember that car loan rates change daily, so be sure to check in with Go Banking Rates for the best auto loan rates possible. We’ll supply you with free auto loan rates so that you can comparison-shop and ensure you’re getting the best deal possible.***
