When looking to buy a car, many drivers find themselves in a less-than-desirable financial situation. As a result, they often need to accept the loan terms they are offered, even if they aren’t so great. Fortunately, refinancing a Hyundai loan can be a great way to fix this, and Keyes Hyundai goes over what you need to know about this option.
What is Refinancing?
As the name implies, refinancing basically means you finance again. First, you’ll reapply for a loan. If you are approved, your new lender will pay off your old loan. You will then start making monthly payments to the new lender.
Why Refinance Your Auto Loan
There is really only one reason to consider refinancing: to cut your costs. Ideally, when you apply for a new loan, you will get a better interest rate. If your credit has improved since you bought your car, the rate you qualify for could be significantly lower. As a result, you could end up saving hundreds of dollars – if not more – over the course of the new loan.
When Refinancing May Not Be Worth It
While refinancing sounds like a great deal, it’s not the best choice for every borrower. If, for example, you’ve almost paid off your loan, refinancing probably doesn’t make sense. The same is true if your interest rate won’t be too much lower. This is because you will need to pay a fee to refinance, so this could eliminate your potential savings.
Speak to a Refinancing Specialist in Van Nuys, CA
Confused about refinancing and whether it’s a smart move? Contact Keyes Hyundai in Van Nuys, CA. You can speak to one of our financing pros to learn more and get expert recommendations.
