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Should You Refinance Your Auto Loan?

By bayridgeadmin | Posted in Blog, Honda Finance on Monday, February 6th, 2017 at 8:39 pm

NY Loan Refinancing | Manhattan Honda Financing

With the current low-interest rates doing the rounds, a large number of New York vehicle owners would prefer to refinance home mortgages, and so restructuring your auto loans may be the last thing on people’s mind. But wait; before you jump to the obvious conclusion, you should consider refinancing your auto loan as well. Here are three very valid reasons that prove refinancing auto loan is the right way forward.

Why Should You Refinance Your Auto Loan?

Brooklyn Refinancing

When you decide to refinance your auto loan at a lower rate, you invariably save money as you not only pay a lower interest rate, but you also end making lower monthly payments. You can increase your term length if you want to lower the monthly payments even further. Alternatively, you can also choose to decrease your term length so that you can pay off the loan quicker and become debt-free.

When Should You Opt for Auto Loan Refinancing?

The circumstances should be right if you want to refinance your auto loan. Here are a few things you should be looking to consider:

  • Check whether your credit score has improved as a higher score translates into lower risk. See whether you would like to take advantage of this improvement to get attractive interest rates.
  • It makes better sense to refinance an auto loan when you realize that interest rates have dropped since you first applied for the loan. This helps you enjoy the prevailing low rates.
  • Sometimes auto dealers charge you a higher interest rate in a bid to make more money. If you realize that they are overcharging you for the money you borrowed, it is a good idea to go in for refinancing.
  • If you need to reduce your monthly payments, owing to financial hardships and rise in expenses, it makes perfect sense to minimize the monthly payments. However, do remember that you will have to pay an additional sum so make sure you do the calculations right.

How Should You Refinance Your Auto?

Refinancing is a very real option for those who have a history of regular, on-time payments for around six to 12 months.

  • During the application process, opt for the AutoPay option as lenders are more liable to lower the interest rates if you pay your monthly payments this way.
  • Compare offers and choose the one that offers you the lowest interest rate, but make sure you also check the hidden costs.
  • Refinance only if you can easily manage the increased monthly payment. It not only helps to cut down on the interest you would have to pay in the future, but it also minimizes the term of the loan.

Auto loan refinancing is relatively painless. All you have to do is understand your current loan terms and inform your lender that you are trying to seek a better deal. Here at Bay Ridge Honda, you can clear your doubts about refinancing your auto loan in New York. Get in touch with us at (844) 445-0222 to speak to our auto loan refinancing experts!

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