While an auto loan may seem perfect when you first obtain it, that can change over the years. Refinancing can help you change your terms and save on your monthly commitment. Our Land Rover finance team at Land Rover Northfield is outlining how simple it is to refinance and why you should consider it.
How to Refinance
When you refinance, you’re essentially applying for a loan all over again. We’ll review your employment and income info, your expenses, and then check your credit. We give this information to our lenders and then come back to you with the best loan offers we receive.
Why it Helps
If your credit has improved or federal interest rates have been reduced, refinancing can help you save money on your new loan. With a lower rate, your entire loan cost will be lower, which helps you save overall and pay off your loan sooner. You could also keep your term the same, or even extend it, to have lower monthly payments.
Precautions
When lenders look at your financials, they also consider your vehicle. Older vehicles are often tied to higher interest rates because they’re more of a risk to lenders. Lenders also look at the current value of your vehicle. If the amount you owe exceeds the value of your loan, you may have to reduce the deficit.
Trading In
If you’re planning to extend your loan significantly, it may be a better idea to trade it in and purchase a new vehicle. That way, you have the advantage of driving a new vehicle, which is less likely to develop issues. Plus, you can apply positive equity towards your purchase.
Refinance Your Land Rover Auto Loan in Northfield, IL
Ready to save on your monthly financial commitment? You can refinance your auto loan directly at our dealership. We’re also happy to help you upgrade to a new vehicle. Visit Land Rover Northfield to get started today!