With the right person in your corner negotiating the deal, a new lender could be found to offer you a lower interest rate on the new loan compared to your original car loan. A lower interest rate will reduce your regular repayments and leave more money in your pocket.
By extending your loan term, you can reduce your regular repayments, leaving more money in your bank account each week. Each repayment is lower because the repayment of the loan principal is divided by more months.
You may want to remove a co-signer from the loan or to add one, which can get you a better interest rate if you have had some credit issue in the past.
You may find your current lender difficult to deal with. Refinancing your loan could give you an opportunity to build a new relationship with a more helpful lender.
If you negotiate a longer loan term to reduce repayments you could end up paying more in the long run. This is because you will have the loan amount outstanding for a longer period of time, so you will pay more interest.
Your current lender may charge you fees to pay their loan out early. Commonly known as early termination fees on your original loan contract. You will also have new fees on the new loan. You need to way up whether the costs of these fees outweigh the benefits of doing the car loan refinance.
1 Ensure your payments are up to date
If you are behind in repayments on your current loan it is unlikely that you'll be able to get a new loan at a reduced rate, so make sure you are up to date in your repayments.
2 Find out your current outstanding loan amount
Call your current lender and ask for the pay-out amount. You will need to let your car refinance expert this amount, so they know what amount to apply for on your behalf.
3 Get a car loan refinance expert in your corner
Having a car loan refinance expert in your corner can save you time and money. Our experts do all the running around and negotiating on your behalf. Our process can be completed from the comfort of your home, over the phone, email and internet.
4 Compare and save
After your pre-approval is complete, your car refinance expert will spend the time with you explaining everything that you need to know about your new loan offer. They can also then help you compare what savings are available to you and run through the total costs associated with the new loan.