When you're currently in a loan but decide to lower your monthly payments or interest rates, you're choosing to refinance.
At Auto Credit Express, we understand that with time your financial situation does change and sometimes you need your loan to change with it. That's why we've gathered up all the information you'll need to understand just what refinancing is.
Why Refinancing Can Help
Often times when you first get into an auto loan, or get into your auto loan with bad credit, both the rates and terms had worked for you at the time. But times, they are 'a changin and what was good for you a few months ago maybe burdensome to you now.
This is probably the number one reason that many find refinancing to be a smart choice. It allows you to meet with the dealer and renegotiate the terms and conditions of your auto loan. If you've remained current and punctual with your payments, some ways the dealer may be willing to help are:
- Lowering your interest rates
- Lowering your overall monthly payment
Another way to achieve a lower monthly payment is by simply extending the life of your loan. This is something that you should discuss at length with your dealer as it can have significant consequences in some cases.
By extending the term of your loan, you will be paying towards the original value you bought the vehicle at. However, depreciation can leave you upside down on your loan and will be very difficult to resolve in some cases.
As We See It
Unfortunately, sometimes dealers are still unable to get you the rates, terms and monthly payments you want because their lenders are not as lenient with credit that is anything less than perfect.
The team here at Auto Credit Express has helped millions get approved for the auto financing they needed when no one else could help. We work with dealers that specifically use lenders that have the right options available for your needs.
And if you are looking to take on an auto loan, don't hesitate to apply today and we will get you on the right track with the best dealer in your local area!