Woman in Car Reviewing Reasons to Refinance Her Car Loan.

Feb 16, 2017 / Auto & RV

3 Reasons to Refinance Your Car

When people think of refinancing, they usually think of their home. We’re going to give you 3 reasons to think about refinancing your car. Shopping around for a better rate could save you hundreds of dollars each month and probably thousands of dollars over the term of your loan.

Who wouldn’t want a little extra cash and lower car payments? With auto loan rates as low as a school-zone speed limit, now is the time to think of refinancing. The process is quicker and easier than refinancing your home mortgage or consolidating your credit card debt. So how do you know when is the best time to refinance your car? Here are three questions to help you decide if refinancing may be right for you. If you answer “Yes” to any of these, it’s probably time to refinance your car.

Are your car payments stressing you out?
If money is tight and you find yourself struggling to make your monthly car payments, it’s time to look into refinancing. Many lenders can help you get into a loan with a monthly payment that is workable, without stretching your budget. Wouldn’t that be a relief? If you are having current financial problems, refinancing your auto loan can help.

Has your credit score improved?
Maybe your credit history isn’t as golden as it could be, but if you have better credit now than you did the last time you applied for a car loan, it could help. If you’ve been on your best behavior and have made several on-time payments, your credit score could be improving. Check your credit score. If it’s better, it’s time to refinance!

Do you have a short-term loan?
Pull out the latest statement for your car loan. Compare the length of your loan with other lenders. Some lenders can offer longer terms to get those payments down where you need them. If you need to get out from under a shorter term loan with payments that are too high, it’s time to refinance!

If you answered yes to any of these questions, it’s time to talk to a lender. Utah First auto loans feature terms up to 108 months and financing up to 125% of retail National Automobile Dealers Association (NADA) value. We can also get you low payments on boats, RVs, or motorcycles. Call us at 800-234-0729, visit your local branch or apply online today!