How To Refinance A Car Loan

Your car has gotten you from points A to B and all around Alton for some time now. You love your car, but you don’t love the payments. It’s likely that you’ve like heard about refinancing, but aren’t sure how to go about it. How do you refinance a car loan? Don’t worry! The knowledgeable finance staff at Federico Kia of Wood River would be happy to walk you through all of your financing options. For now, let’s talk about the best way to refinance an auto loan and what to know when refinancing your car.

How Do You Refinance a Car Loan?

• Check your credit report. The best way to refinance an auto loan begins with checking your credit. You’ll want to know if there are any issues with your credit before you apply for a refinance loan. Some issues, like a forgotten utility bill, can be easily taken care of.
• Get pre-qualified before you apply. You’ll want to shop around among multiple lenders so that you can get a good rate. But how do you refinance a car loan without damaging your credit score with a bunch of credit applications? Pre-qualification is a great way to do this, because the credit bureaus regard this as “soft applying” so it doesn’t impact your credit score.
• Apply with the lender of your choice. Once you decide on a lender, you can “hard apply”. Note: pre-qualification does not guarantee loan approval or that you’ll get the rate initially quoted.

What to Know When Refinancing Your Car

Knowing how to refinance a car loan is only half the battle. There are other factors Edwardsville drivers need to be aware of. Here’s what to know when refinancing your car:

• • There may be fees. Lenders often charge fees when opening a loan. But your old lender may have a prepayment penalty. Take this into account when deciding whether to refinance.

• There may be costs to re-register the car or transfer the title of your vehicle.

• You will not automatically get a better rate. If your credit has not improved or rates have not gone down since you took out your loan, you may not get a better rate.

Talk to the Finance Department at Federico Kia

Our finance staff would be happy to talk to you about the best way to finance your auto loan. In fact, if you’re looking to buy a car, you can even apply for financing online with us. Feel free to come in and check out our new vehicle specials. We’re conveniently located near Godfrey. So stop by or contact us today!