When is the best time to refinance auto loan?

It is important to take both short-term and long-term factors into account when deciding to refinance. Here are some factors to consider:

Your credit score has gone up. You could move into a better interest tier and qualify for a lower rate.

You want to change the loan term. If you want to reduce the term to pay off your auto loan sooner, you can pay more each month; or you could extend the term to reduce your payment.

Loan rates are down. If loan rates decrease drastically, you may be able to refinance to get a lower rate.

You have positive equity. If your car is worth more than what you owe, you may be able to refinance and get cash back for other expenses, or to consolidate higher interest loans.

You’re unhappy with your current lender. You could refinance to a lender of your choice.

Your car is older than 10 years. If your car is that old, you may have a hard time finding a lender willing to refinance. Lenders often set limits on vehicle age in order to qualify for a loan.

Not sure if refinancing makes sense? Contact an Advantis member advisor to talk through your options. Or if you’re ready to refinance, you can apply online now.