Guide to Refinancing Your Auto Loan

If you have a loan on your vehicle, you may want to consider refinancing your auto loan. Refinancing could help you receive a lower interest rate and even a lower monthly payment. If your credit has improved since you acquired the loan, you could save money on your vehicle auto loan by refinancing.

How Do You Refinance Your Auto Loan?

The refinancing process takes a little bit of time, but is relatively easy. Follow the guide below to learn more about refinancing your auto loan.

  • Credit Check - You'll want to know what your credit score is and how much higher it is since you got the loan. Scores above 740 will get you the best refinancing rates, but a score over 660 is a great start.
  • Loan-to-Value Ratio - You'll want to see if your car is "underwater" or not. This means that you owe more on your car than it's worth. You may not be able to refinance if that's the case.
  • Prepayment Penalties - Make sure that your loan doesn't include a prepayment fee.
  • Remaining Loan Term - How much longer is on your car's loan? If it's within a year or two remaining, you may want to just stick with the original loan payment plan. Refinancing helps lower the interest rate, but can affect the loan term's monthly payment amounts and length. You want to ensure that refinancing will save you money, not make you pay more overall.
  • Get Important Documents Together - You'll need your personal information (SSN, driver's license, etc.), income information (pay stubs, tax forms, etc.), car information (VIN, mileage, registration, insurance info, etc.), and loan information (lender's name, balance, etc.).
  • Shop Around - Once you have all the information you need, get quotes from multiple lenders to discover which one is the best. It's better to take some time to discover which lender is right for you.
  • Apply for the New Loan - Once you've found the right refinancing lender, apply for the new loan, and they should take care of the rest. The new lender will pay off your old loan, transfer the title, and send you the necessary paperwork.

    Contact Fred Beans if You Have Any Refinancing Questions

    If you'd like to learn more about your auto refinancing options, we'd love to help. Feel free to contact one of our Fred Beans finance centers located around Philadelphia, Philly Metro, and the Delaware Valley or drive from Southeastern PA, Central PA, or beyond to one of our dealerships today!

    1. Fred Beans Auto Loans

      835 North Easton Road
      Suite 100
      Doylestown, PA 18902

      • Phone: 833-784-1027
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    • Contact our Sales Department at: 833-784-1027