If your credit score has recently improved and you’re looking to get a lower interest rate, or if you just want to get your loan paid off sooner, refinancing your vehicle can be a great option. Mazda financial services can help you get started. The finance team at Scott Mazda goes over the ins and outs of refinancing to help you understand how it all works.
How Refinancing Works: Step-by-Step
Refinancing your car loan involves replacing your existing loan with a new one. Here are the steps to take when considering refinancing:
- Check your credit score: Paying all your bills on time has likely improved your credit score. See where your score is to determine if you would benefit from refinancing.
- Begin applying: Apply to several automotive lenders so that you can see what sort of rates are available to you. Submitting all your applications within 14 days of one another helps to minimize any negative impact on your credit score.
- Compare your offers: Take time to compare all your offers to ensure you get the monthly payment that fits your budget.
- Choose your loan term: Choosing between a longer or shorter-term loan will depend on your situation. With a short-term loan, you will pay less interest and get the loan paid off sooner, but your payments will be higher. Your monthly payments will be lower for a longer-term loan, but you will pay more in interest overall. You can use our online monthly payment calculator to model your payments.
Things to Keep in Mind When Refinancing Your Vehicle
Before you refinance, check if your current loan has any prepayment penalties or fees associated with paying off your loan early. Additionally, if you are underwater on your loan, getting approved for refinancing might be more difficult. Older vehicles may be tougher to refinance as most lenders don’t refinance vehicles that have experienced major depreciation.
Contact MAZDA Financial Services in Allentown, PA
The finance experts at Scott Mazda are here to help you lower your monthly payments to meet your budget, or get you set up with a plan that helps you pay off your vehicle faster. Contact us or schedule an appointment with our team to learn more about refinancing your vehicle in Allentown, PA.
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