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Car Loan Refinance

Can I lower my car payment by refinancing my car loan?

I own a Nissan and my car payments are too high. Is there any way to lower my car payment?

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Highlights

  • Refinance car loans while rates are low.
  • Save money by refinancing your car.
  • Prepare yourself for a successful refinance on your car.

It makes good sense to refinance a car loan, now that interest rates are so low. However, given the lack of detailed information in your question it is hard to know exactly what observations to offer.

A great place for you to start is by reviewing some basic facts about car loans.

A lot depends on how much you owe on your car loan, your current interest rate, your credit score, your vehicle's market value, and whether you have been able to maintain your payments as agreed on your current loan.

It could be worthwhile to refinance your car. Researching that option does not cost you money, but you still need to be careful. For instance, each lender with whom you speak will want to pull your credit score. Having your credit score accessed by multiple parties can lower your credit score. You may want to begin by viewing your own credit score for free. If your score is not strong, you may not be able to qualify for a lower rate than you are currently paying.

When shopping for a new car loan, start off by speaking to your current lender, to see if they will offer you different terms. Many are not willing to do so, because the current arrangement is working fine for them. Some lenders may work with the borrower, by adding payments on to the end of the loan, making each payment smaller.

Still, given the size of most car payments, even a flexible lender may not be able to offer you substantial savings on a monthly basis. It all depends on how much you are paying now and what the term and interest rate will be for the new loan.

If you try to refinance your car loan, it is a good idea to shop around. If you know your credit score in advance, ask directly what kind of loan will be available. If you are not offered a chance at a better loan, do not let the lender pull your credit. If you are asked to pay any up-front fees, that is a danger sign. Check out the reputation of the firm you consider working with by doing a search online with the state consumer agency in your state or the state where the lender is located.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

3.8
/5.0
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