How to Refinance a Car Loan

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Refinancing an auto loan can help lower your monthly payments and cut the amount you have to pay in interest, making it an attractive idea if you’ve financed your new Acura. So, how do you refinance a car loan? The financial representatives of Acura of Avon share what to know when refinancing your car to ensure it’s a smooth process.

How Do You Refinance a Car Loan in Canton?

In order for you to benefit from refinancing your car loan, you need to be able to lower the amount of interest you’re paying. This means you have to know what your current rate and monthly payments look like. Review your auto loan documentation or confirm this information with your lender. Then follow the steps below for the best way to refinance your auto loan:

  • Perform a Credit Score Check: As long as you’ve been making payments on time, there’s a good chance your credit score has improved since taking out your loan. If it has, this can be an indicator you’ll benefit from refinancing.
  • Fill Out Applications: To ensure you get the best rate, you’ll want to apply with multiple refinancing companies. In order to minimize the impact on your credit report, make sure you submit all applications within a 14 day period.
  • Compare Offers: Gather your offers and run the numbers to see which provide you with the best option. Our online monthly payment calculator can help you decide.
  • Decide Loan Term: Pick your loan term. A shorter loan term means you pay less interest overall, but your monthly payments will be larger. A longer loan term cuts down your monthly payments, but will increase the amount of interest you pay over the course of your loan.

The best way to refinance an auto loan depends on your circumstances. If you have questions about what course of action to take, our Acura of Avon finance representatives are available to answer your questions.

What to Know When Refinancing Your Car Loan

You’ll want to keep a few other things in mind when you take the step to refinance your car, such as:

  • Check for Fees: When reviewing your car loan, make sure there aren’t any fees associated with paying your car off early. If there are, refinancing may not be worth it.
  • Underwater Finances: If you’re in a situation where you owe more than your vehicle’s currently worth, it can be harder to refinance your car.
  • Older Vehicles: Often lenders won’t refinance older vehicles that have already been hit by major depreciation.

If any of these situations apply to you, speak with the Acura of Avon finance center to learn more about your options.

Learn More About Your Financing Options at Acura of Avon

You now know the basics of how to refinance a car loan, but it’s common to have additional questions. If you do, stop by Acura of Avon near West Hartford, or get in touch with our finance center. We’ll help you find the best way to refinance your car loan in Canton!

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Acura of Avon 41.8240596, -72.8799912.