How to Refinance a Car Loan Today

Tiny car with coins and finance paperwork

If you are looking to reduce your monthly payments and interest rates, there’s a way to do it. Learning the best way to refinance auto loans can help you save money every month. Our team at Fisher Honda covers the ins and outs of refinancing so you’re prepared with a bunch of information. Keep reading and learn how to refinance a car loan in Louisville!

So, How Do You Refinance a Car Loan?

Refinancing a car loan is aimed at lowering your interest rate, and thus, your monthly payment. To do this, you’ll need to know what you are currently paying for your Honda vehicle. Take a look at your documents or contact your lender to confirm your current interest rate and monthly payments. After determining your current rates, follow these steps:

  1. Check your credit score, and if you have been paying all your bills on time since purchasing your vehicle, there is a good chance your credit score has improved and you could benefit from refinancing.
  2. Start applying for refinancing with several automotive refinancing companies. This will help ensure you get the best rate. Submit all applications within a 14-day period to minimize the negative impact on your credit score.
  3. When you receive your offers, take the time to evaluate the offers and run the numbers to make sure any new offers coming back will get you the monthly payment you are looking for. You can use our online monthly payment calculator to help you compare offers.
  4. Choose a loan term, after you decide if a longer or shorter-term loan will accommodate your situation best. A shorter-term loan will include larger monthly payments, but you will pay less interest in total. A longer-term loan, on the other hand, will have lower monthly payments over a longer period of time (thus more cumulative interest).

Choose the loan term that works best for your situation.

What to Know When Refinancing Your Car

Here’s what to know when refinancing your car in Longmont, be sure to keep these ideas in mind when you begin the process so you can determine the best way to refinance auto loans according to your life:

  • Fees: When you are refinancing a car loan, you want to confirm with your original lender that there aren’t any fees associated with refinancing. If there are, refinancing may not be cost-effective.
  • Underwater Finances: If you owe a lot more than what your vehicle is currently worth, it may be difficult for you to get approved for refinancing.
  • Older Vehicles: If your vehicle has already experienced most of its depreciation you may find it harder to find a lender that will refinance your vehicle.

If you find yourself in any of these situations, contact the finance center at Fisher Honda, and we can help you figure out how to refinance a car loan based on your financial circumstances.

Find Out How You Refinance a Car Loan With Fisher Honda

Our finance experts are happy to help you learn more about what to know when refinancing your car and the best way to refinance auto loans in the Longmont area. If you have any questions about this process, feel free to contact us today or stop by for a visit in Boulder! We can’t wait to see you and help you get the best price for your Honda model.

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