Unlike refinancing a home mortgage, refinancing a car loan has a different set of ramifications. With a home mortgage, you are dealing with equity, which in “most” instances is stable, and usually not trending downwards. That said, refinancing a car loan can be a huge benefit, if you are stuck with a bad interest rate, have improved your credit score recently, or you simply come across an astute automobile finance company as you will with New Leaf Auto Finance. We are a specialty automobile finance company and can help you if you are interested in refinancing a car loan.

Here’s what you need to know about auto refinancing and how to determine whether it could help you save.

Do You Qualify To Refinance A Car Loan?

Due to the continuous downward pressure on interests rates we have seen for the past few years, there is plenty of lender money out there for refinancing a car loan, if you fit their requirements,

Some common guidelines to work by:

Have You Improved Your Credit Score Recently?

If you have continued to make payments on time there is a good chance your credit score has improved since you took out your car loan, you will be a good candidate for refinancing a car loan. Just like a mortgage a lender needs to see you continuously improving your credit score for you to get a better rate. That said, we have various techniques for refinancing a car loan, that we only discuss with our clients personally, that we use to help them bring their car loan rate… and payments, to a better position than they had before.

Are Interest Rates Better Than When You Took Out Your Original Car Loan?

Most people don’t pay attention to the actual Interest Rate they are paying, and don’t realize how much of a difference it makes in the monthly payments they are making. Having one of our consultants, assess your current situation is sometimes all you need to know whether you would qualify for refinancing a car loan.

Do You Have A Long Loan Term?

Car loans these days are getting longer and longer. As the price of new vehicles continues to rise, extending car loan terms to 72 and even up to 96 months is more and more common these days, in order to get monthly payments to a more palatable amount. The longer your term, the more interest you will be paying the financial institution, if you are able to shave even a point or two off the interest rate of your car loan, there is the potential to save a lot of money. Refinancing a car loan to a shorter term with a lower rate can pay huge dividends if you structure the auto loan correctly.

Things To Bear In Mind If Refinancing A Car Loan:

• Refinancing can extend the life of your loan. If you are seeking Cash Back in your auto refinancing for whatever requirement, this may be beneficial.
• Always understand the ramifications and details of your new and your existing loan, before moving ahead. A New Leaf Automobile Financial consultant, will help explain and understand the details of your existing and potential new loan before you sign on the dotted line.
• Be sure any potential loan penalties – prepayment penalties, refinance fees etc don’t wipe out the potential benefits you may get by refinancing your car loan.

Getting Started Refinancing A Car Loan

Refinancing a car loan, is a very easy process even if you don’t have perfect credit and we can usually have all the answers you require in one day. By dealing with with New Leaf Auto Finance, your current lender as well as the auto finance lenders we deal with, are unable to take advantage of the usual tactics of fear they use with their customers. They instantly realize that we understand the entire “process” and are able to navigate you to the best rate, and monthly payments since we are beholder to none of them, we only seek the best automobile refinancing package for our clients.

Where to Find The Best Package For Refinancing A Car Loan?

New Leaf Auto Finance deals with every major lender in Canada including Banks, Credit Unions, Specialty Lenders as well as In-House Financing. Click Here To Contact Us Today For Answers To Refinancing A Car Loan.

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