The material presented here is for educational purposes only, and is not intended to be used as financial, investment, or legal advice.
Five Reasons to Refi Your Auto Loan
Your car or truck is your baby. You spend your hard-earned money on it. It has taken you on some amazing road trips. All of your friends know that you named your car, and you are totally proud of that! (Don’t worry, our cars have names, too!)
Your car payment, on the other hand, is not something you love. We get it! You may have been so excited when you bought your car and so anxious to seal the deal that you ended up signing on the dotted line before negotiating the best loan possible. Because of that, it may be time to consider looking for a better deal by refinancing your auto loan.
There are many reasons you should consider refinancing your car loan, but here are the top five:
1. You Could Lower Your Monthly Payment.
If your loan payment is not working for your budget anymore, then refinancing is a great option that can potentially lower your monthly payment. Doing this will help decrease your monthly bills and allow you to have more spending money to purchase fun accessories for your ride.
2. You Could Secure a Lower Interest Rate.
Interest rates may not be the first thing on your mind when you are purchasing a car, but they should definitely be something to consider when refinancing your loan. If interest rates are lower now than they were when you bought your car, you could refinance your loan to secure a lower rate. Even if interest rates haven’t gone down, you may be able to qualify for a better rate if your credit score has improved since you purchased your car.
3. You Could Get Cash in Your Pocket.
When you refinance your auto loan with Desert Financial, you will be putting more money in your wallet. You could potentially get cash back just for refinancing your loan! That money could go straight into your piggy bank for your next road trip. Once your loan is finalized, you won’t have to make your payment right away, either. Who doesn’t want to skip a couple of payments on their loan?
4. You Could Pay off Your Loan at a Pace That Fits Your Life.
Your car can go fast, but so could your loan! If your income has increased since you got your auto loan — thus allowing you to pay a little more each month toward paying it off — you can refinance it to shorten its length. Paying your loan off faster also means that you will be paying less interest overall.
On the other hand, if your loan payment is not fitting into your budget anymore because it is too expensive, then an auto refinance could give you the option to extend your loan. Doing this can lower your monthly payments and allow you to pay your loan off more slowly. Sometimes faster isn’t better — like when your new loan is helping you to improve your credit score or enabling you to have lower payments.
5. You Could Partner With a Lender You Actually Trust.
If you purchase an auto loan from a dealership, chances are that you’ll be working with a lending institution that either you don’t know or you didn’t choose. If you refinance your loan, you can choose the financial institution you want to work with. Opening a loan with your local credit union or bank could give you more benefits. Refinancing your loan gives you the chance to look at your options and move forward with a company that has your back.