Frequently Asked Questions About Refinancing a Car Loan
- June 11, 2021
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Is automotive refinancing right for me?
You may find vehicle refinancing useful if you are looking to save money on your monthly outgoings, and the interest rate offered on the new load is lower than the pre-existing loan. It can also be a good idea if your credit score is better than when you took out your first loan. It can free up some cash for household expenses, or enable you to buy your vehicle outright if the lease on it runs out soon, as long as you have kept to all of the lease terms and conditions.
What if my credit score has deteriorated since my last loan?
It might still be possible to get a deal that saves you money, check by using a calculator tool and by comparing the deals available from companies who will consider a lower credit score.
How long does it take to apply for automotive refinancing?
It is a quick process to apply for car refinance, usually only taking five or ten minutes to fill out an online application.
How long will it take until I get a decision?
Most companies will inform you of their decision in 24-48 hours of receiving your application.
What personal information do I need to submit with an automotive refinance application?
You need to have ready some personal information when you apply, such as your full name and social security number, citizenship and marital status details, full contact details including email address and telephone number, address and former address details (if you have lived in your home for less than three years) and whether you are a homeowner or a tenant. You will be asked what your monthly housing costs are.
What income and employment details will I need to give when applying to refinance a vehicle?
You will need to give a name and address for your employer, along with your employer’s telephone number, and to state whether you work full-time or part-time. You will be asked your gross annual salary, and if you receive income from any other sources, you will be required to give details. If you have been with your current employer for less than three years, you will need to give information regarding your prior place of employment as well.
What information do I need to give about my vehicle when applying for automotive refinance?
You will definitely need to give the make, model, year of registration and registration number of your vehicle, as well as the amount of money that is outstanding on the current vehicle loan, and the details of your current loan including the name of your current lender.
How much money am I likely to save by refinancing on my car?
The amount of savings you can make depend on a number of factors such as how much you owe on your existing loan, how much your car is worth and what the interest rate, terms and conditions are for your current loan. However, some people save an average of $700 per year by shopping around for the best deals with reputable lenders.