How to Refinance a Car Loan

Have you been wondering “how do you refinance a car loan?” Our team at BMW of San Diego will help you find out the best way to refinance an auto loan today! The experts in our finance department will walk you through what refinancing is, how to refinance a car loan, and whether you’re a good candidate for auto loan refinancing. Read on to see if you can lower your monthly payments today!

How Do You Refinance a Car Loan?

If you’re looking for a way to lower your monthly payments, then refinancing your car loan is sure to help. Refinancing your loan lowers your monthly payments if your credit score has risen since you took out the original car loan. (If you’ve been making on-time payments, then it’s very likely that it has risen!) Before you decide to learn how to refinance a car loan, there are some details that you should consider.

Take some time to review the terms of your loan, as it may have a clause that could make refinancing impossible. Other things to take note of include:

• Your Credit Score: Your credit score will determine whether you’re able to refinance your car loan. Lenders want to see proof that you’ve significantly improved your credit score since taking out your car loan. Making on-time payments every monthly positively impacts your credit score.
• Consider All Your Options: Fill out applications to several lenders, which will boost your chances of getting a better offer.
• Evaluate Your Offers: Evaluate your offers and take the time to run the numbers. You can use our payment calculator to make this task easier.
• Decide Loan Terms: Determine whether you want a short-term loan or a long-term loan. Shorter terms require larger monthly payments but less interest, while long-term loans require the opposite.

What to Know When Refinancing Your Car

Some lenders try to prevent customers from refinancing by adding clauses that could prevent them from refinancing their vehicle. If this is the case for you, then refinancing is not an economical option. Some things you should consider before moving forward include:

• Fees: If your contract charges you for refinancing, you should consider staying with your current lender.
• Underwater Finances: Getting approved for refinancing is more difficult for Chula Vista drivers who owe more money on their car than its estimated value.
• Older Vehicles: Many lenders will decline refinancing your loan if the model is older and has depreciated significantly.

Learn More About How to Refinance a Car Loan at BMW of San Diego

Are you ready to see how refinancing your car loan can lower your monthly payments on your new vehicle? Drivers in and around El Cajon and Encinitas will be excited to learn more with our team. Getting a good deal on a car loan when you begin financing is best to avoid the hassle of refinancing a car loan. If you have questions about car loans or how to refinance a car lown, don’t hesitate to contact us online today.