In America, 85 percent of newly purchased vehicles are financed through a loan or lease. Today, most auto loans are up to nine years long for new cars and up to six years on used vehicles.
While lengthier loans can reduce a borrower’s monthly payments, it can cost them far more in the long run. High APRs mean higher interest rates throughout the life of a loan. Americans that made purchases with a dealer-chosen lender instead of shopping around may also experience less-than-ideal loan terms.
If you’re like countless other Americans who are unhappy with a new auto loan, you may be asking, “How soon can you refinance a car loan?” Fortunately, most borrowers can refinance sooner than they might think.
The Benefits of Refinancing a Car Loan
With the right lender, refinancing an auto loan can be done at any point during a loan. Refinancing options can provide numerous benefits, including:
- Better loan terms
- Lower interest rates
- Reduced monthly payments
- Longer or shorter loan lengths
- More convenient ways to make payments
- A better customer experience
How to Get the Best Auto Loan Terms When Refinancing
Once you’re ready to review your refinancing options, it’s essential to take steps to ensure you get the best loan terms possible for your situation. Those steps may include:
- Tidying Up Your Credit Score and History: Review your credit score for any mistakes or areas of improvement. Errors on your credit report can negatively impact your credit score, making it more challenging to obtain a loan and potentially raising your offered APRs. Dispute any discrepancies that you find.
- Consider a Co-Signer: If your credit score, credit history, or debt-to-income ratio was a critical factor that held you back on your initial loan, consider a co-signer. Having a co-signer can help you negotiate better car loan terms, including lower interest rates or lower monthly payments.
- Shop Around: Shopping around is one of the best options you have as a consumer. No two lenders are the same. Consider each offer carefully and take into account non-financial factors, such as convenient payment methods and other perks a lender may provide.
Refinancing an Auto Loan With Vantage Financing
Now that you’ve answered, “How soon can you refinance a car loan?” you’re ready to get the auto loan terms that work for you. Refinancing a car is a simple process. To get started, gather your personal and financial information, including proof of income. Don’t settle for high-interest rates and undesirable loan terms. Give us a call today to see how we can help.
