The automotive industry in America hit record highs in 2019 with an estimated $1.2 trillion in outstanding car loan balances. Today, 85% of new passenger vehicles are financed, with the average first-time loan payment rising to $554 a month.
If you’re like many Americans, you may be paying an auto loan that is too costly. If your financial situation or your credit score has improved since you applied for your loan, you can renegotiate your loan terms.
But what if you like your lender? You may be wondering, “Can I refinance my car with the same lender?” For many lenders, the answer is yes. However, you must make sure that you review your refinancing options to ensure that you get the best loan terms for you.
The Benefits of Refinancing an Auto Loan
Now that you’ve answered “Can I refinance my car with the same lender?”, it’s worth taking the time to explore the benefits of refinancing an auto loan. Refinancing a car loan can result in:
- Lowering your monthly payments
- Extending or shortening the length of your loan
- A reduction to your APR, which will reduce the amount of interest that you will pay over the life of your loan
- Obtaining a lender that has more convenient payment options
Reviewing Your Refinance Options
While you usually can refinance your car with the same lender, it’s not always the best option. Your loan terms, including your interest rate, are determined by factors such as:
- Your credit score and history
- Your finances, including your income and debt-to-income ratio
- Whether or not you have a cosigner
- The lender that you refinance your car loan with
Lenders will offer you different loan terms. That’s why you must shop around so that you get the best deal and save the most money when refinancing. Before refinancing a car loan, it’s also essential that you review your current loan terms. Some lenders penalize borrowers for paying off a loan too early. If your lender will penalize you, ask about refinancing with your lender or compare the penalty to the amount you will save with better loan terms.
Refinance Your Car Loan With Vantage Finance
High APRs can quickly lead to overpayment on a vehicle, and you may begin to owe more than your car is worth. If you’re overpaying on your auto loan, it’s time to review your options. Fortunately, refinancing a car loan is a simple process.
