There are lots of reasons to refinance a car loan. However, it’s essential to do your research to make sure it’s the right decision for you. Hall Honda Elizabeth City outlines the pros and cons to help you weigh your options.
The Pros of Refinancing
Most drivers refinance their car loans because they’re looking to save on their purchase. Whether you need lower monthly payments or are just looking to reduce your debt, refinancing can be beneficial. Your loan terms are reconsidered when you apply for refinancing, so you could get a lower interest rate, which means you’ll be spending less overall.
The Cons of Refinancing
We know that saving on your vehicle purchase is appealing, but you need to consider the big picture before you proceed:
- If your credit is lower, you’ll likely get a higher interest rate
- If you opt to extend your loan term, you could end up paying more for your vehicle
- You could owe prepayment penalties or other new loan fees
- If you aren’t already, refinancing can make it easier to become upside down in your loan
- The hard inquiry can drop your credit score, albeit temporarily
Refinancing Your Car Loan
If your credit has improved, or you want new terms, you can refinance at our dealership. We’ll ask questions about your housing and employment to determine what you can afford. We’ll also pull your credit. Then, we’ll present that info to our lenders to see if we can get new terms that are right for you.
Refinance Your Car Loan in Elizabeth City, NC
It’s a simple process to refinance at our dealership. We’re also happy to help you trade in your vehicle for a new one, if that’s a better route for you. Visit Hall Honda Elizabeth City to get started today!
