Everything You Need to Know About Auto Refinancing
There are plenty of reasons someone may want to refinance an auto loan. Most involve changing the length of your term, reducing your monthly payment, or adding or removing a person from the loan. Whatever your motivation may be, it is important to note that everyone’s financial situation is unique. This article will help you understand the potential outcomes and considerations of refinancing to help you decide if it’s right for you.
How Does Auto Refinancing Work?
Refinancing a car loan involves taking on a new loan to pay off the balance of your existing car loan. It’s pretty simple. You trade in your current vehicle, the dealership gives you a trade value and pays that toward your current loan. Whatever remaining balance you have is then added to your new vehicle loan. People generally refinance their auto loans to save money, as refinancing could score you a lower interest rate. As a result, it could decrease your monthly payments and free up cash for other financial obligations…