Reviewed by Shannon Martin, Licensed Insurance Agent.
Refinancing a car loan is a common process, so don’t overthink it.
During a refinancing, you simply get a new loan based on the value of your car to pay off your old loan. The reasons why you would do this include:
Interest rates have dropped, and you’d like better rates
Your credit score has improved enough to get a lower interest rate
You want to remove a cosigner
You want to pay off your car loan sooner
You want a lower monthly payment
Refinancing is especially handy for those who financed a car with an exorbitantly high interest rate, as they’re paying too much in interest over the life of the loan.
If you’re considering refinancing your car, it’s also a good time to sneak a glance at your car insurance policy. Compare quotes with
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