How to Refinance a Car Loan

If your financial situation has improved since you initially financed your new Land Rover, refinancing can help you secure a reduced interest rate and lower monthly payments, allowing you to pay off your loan sooner. If this sounds like something you could benefit from as a Annapolis driver, then continue reading to learn more about the best way to refinance an auto loan. For additional guidance, don’t hesitate to contact our knowledgeable and helpful finance team.

What to Know When Refinancing Your Car

Refinancing may be a great option for you to lower your monthly car payments. But, before looking for a new lender, here’s what to know when refinancing your car:

• If your current loan is underwater: If you currently owe more on your vehicle than it is worth, be prepared for it to be a bit more difficult to get approved for refinancing.
• If your vehicle is older or high in mileage: It also may be harder to get refinancing if your vehicle has experienced significant depreciation. 
• If there is a prepayment penalty associated with your original loan: If there is, reevaluate if refinancing will be cost-effective and still save you money in the long-run. 

How Do You Refinance a Car Loan?

With a better understanding of what to know when refinancing your car, you can decide if it’s still a great option for your drives through Crofton. If you feel good despite the precautions above— great! So, how do you refinance a car loan? The best way to refinance auto loan terms is to: 

• Get a credit report: If your financial situation has improved enough to consider refinancing, it’s likely that your credit score is also stronger. The more solid your score, the better rates you’ll secure on your new loan!
• Shop around: Be sure to get multiple options from Crofton lenders. Shopping around will ensure you’re getting the most competitive rates. 
• Decide new loan term: will a shorter loan term or a longer loan term work better for you this time around? Not sure which will benefit you most? Our finance team can help you weigh your options! 

Learn About Your Financing Options at Land Rover Annapolis

Our Land Rover Annapolis finance team is happy to help our Severna Park-area neighbors manage their loans. If refinancing your Land Rover is an alluring idea to you, please contact us today to learn about the best way to refinance an auto loan. We want to help you pay off your loan as quickly as possible, and affordably!