Auto Loan Refinancing 101

Auto loan refinancing can be a way to save you money, but before starting the refinancing process, it is important to be aware of all the factors that go into it. If you’re a Newport News, VA driver looking for ways to save on your monthly payment, or you have found your financial situation has changed since you first signed your auto loan, then refinancing may be a savvy choice. Here at Casey Auto Group, our team of automotive finance professionals has everything you need to know about refinancing.

Has Your Credit Score Improved?

One of the top reasons to consider refinancing is if your credit score has seen a significant improvement from when you first signed your auto loan. In this case, you may qualify for a lower APR (Annual Percentage Rate). A better rate can save you hundreds and sometimes even thousands of dollars in interest payments over the life of the loan, and it can also lower your monthly payment.

Have Interest Rates Changed?

Even if your credit score hasn’t changed, a drop in interest rates in the market can also mean that refinancing can save you money. If overall interest rates on auto loans have dropped, you may be able to secure a new loan with a lower interest rate, as long as refinancing fees won’t cut into your savings.

Are You Trying to Lower Your Monthly Payment?

If your budget has changed and you need to free up space in your monthly budget, refinancing can be a good idea. However, it is essential to keep in mind that if you extend your loan term to lower your monthly payment, you will likely pay more overall over the course of the loan.

Expert Financial Advice at Casey Auto Group

The experienced car finance teams at the Casey Auto Group dealerships can answer any questions you have about refinancing your auto loan. Visit one of our Newport News, VA area dealerships today!