How to Refinance a Car Loan

If you're looking to lower your monthly car payments by securing a lower interest rate, refinancing your auto loan may be the route for you. If you qualify, you may be able to pay less for your vehicle over time than you would have with your original loan. The finance team here at Audi Stratham has put together a guide to help you understand the refinancing process, so you can decide if it's right for you. Read on to learn more about your refinancing options in Stratham. 

What Are the Steps to Refinancing a Car Loan? 

One of the benefits of refinancing is the ability to secure an interest rate that's lower than that of your original loan. Refinancing your vehicle starts with knowing what you're currently paying and at what interest rate. If you're unsure, contact your lender or review your copy of the loan agreement. Once you have that information, follow these steps: 

  • Check Your Credit Score: If you've made timely car payments on your current loan, you most likely have improved your credit. Get a recent credit report and see if your payments have boosted your credit score. If so, that's good for refinancing. 
  • Begin Applying: For more competitive rates, apply to two or more refinance companies around Portsmouth. 
  • Evaluate Offers: Once you've received offers from those refinance companies, weigh your options. Do any get you closer to your new goal rate? 
  • Short term vs. Long term: A shorter term loan will require larger monthly payments, but you'll pay less interest in the end. With a longer-term loan, your monthly payments will be smaller, but you will pay more in interest over time.

Things to Remember When Refinancing Your Car

There are a few precautions Nashua drivers considering refinancing should note:

  • Your original loan may have fees associated if you pay it off early. 
  • If you currently have negative equity on your vehicle, it may be harder to qualify for refinancing.
  • Older vehicles with depreciation may not get approved for refinancing. 

Explore Your Financing Options at Audi Stratham

If you think refinancing is a good choice for you, our expert finance team will be happy to guide you to an alternative financing plan. If you have any questions, please contact us today. Looking for a new Audi vehicle? Stop in to our Stratham dealership to browse our impressive inventory of new Audi models.

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