How to Refinance Your Car Loan

Refinancing a car loan can help you save more money every month, but many Macon and Byron drivers find themselves unsure of how to begin the process. How do you refinance a car loan to get the best terms? The team at Five Star Chevrolet is here to walk you through every step of the process in depth. Get to know the best way to refinance your car loan in Warner Robins, and then get the ball rolling with our finance department!

How Do You Refinance a Car Loan?

The best way to refinance your auto loan is to reduce the interest rate. So, the first step of the refinancing process is to gather information. What’s your current interest rate? Take a look at your documents or give your lender a call to find out. Once you have your interest rate and monthly payments sorted, here are the next steps you’ll need to take:

• Check Your Credit Score: After a year or so of prompt payments, you might be surprised to see that your credit score has changed. We recommend checking your credit score to see if you are now in a better position to refinance.
• Start Applying: You’ll want to apply to several refinance companies, so you have plenty of options. However, it’s important to apply within a 14-day period to avoid negative marks on your credit score.
• Evaluate Offers: Now that you have offers in hand, take your time to evaluate them. You can use our monthly payment calculator to crunch the numbers at home.
• Decide Loan Term: Finally, what type of loan term interests you? A shorter-term loan means higher monthly payments, but lower interest overall. A longer-term loan means lower monthly payments, but more interest paid overall. Different drivers have different preferences, so ultimately the choice is yours.

What to Know When Refinancing Your Car

Now you know the basics of how do you refinance a car loan, but there are still a few other considerations to keep in mind:

• Fees: Some loans discourage drivers from paying off car loans ahead of schedule, and they may include penalty fees for doing so. Double-check your loan terms to make sure it’s still cost-effective to refinance.
• Underwater Finances: When you owe more money than your car is worth, it’s called being “underwater” on your loan. This can make it harder to get approved during the refinancing process.
• Older Vehicles: Newer cars are easier to refinance because they haven’t gone through the bulk of their depreciation yet. But if your car is older, you might have more trouble finding success with refinancing.

Though these circumstances may make refinancing more difficult, the team at Five Star Chevrolet is here to help. Be sure to reach out to our finance center for advice, and we’ll help you explore your options.

Learn About Your Financing Options at Five Star Chevrolet

We’ve gone over what to know when refinancing your car, but if you still have questions, don’t hesitate to ask. Contact us to learn more about auto financing in the Robins Air Force Base area, and visit our finance center in Warner Robins at your convenience. From refinancing to warranties, we’re here to help with all of your automotive needs.