One of the most common questions that we receive here at our Chrysler financing center is regarding refinancing your auto loan. Doing so can be a savvy move that potentially saves you money and improves your financial situation, but how do you know it’s the right decision for you? The finance experts at Fields Chrysler Jeep® Dodge RAM Asheville are happy to break down what is involved with refinancing and how it can benefit you.
What is Auto Loan Refinancing?
Put simply, auto loan refinancing involves replacing your existing auto loan with a new one, sometimes with different terms and a new interest rate. This can be financially helpful if interest rates have dropped since you initially financed your vehicle or if your credit score has improved.
What Are the Benefits of Refinancing?
- Lower Interest Rate: Securing a lower interest rate can significantly reduce your monthly payments and the total amount of interest paid over the life of the loan.
- Shorter Loan Term: If your credit score or your overall financial situation has improved, you may consider financing a shorter loan term. This will likely increase your monthly payments, but you will also pay off the loan more quickly and potentially save on interest.
- Reduced Monthly Payments: Even if the interest rate doesn’t decrease drastically, refinancing can still help lower your monthly payments if you choose to extend the loan term. This has the benefit of freeing up cash for other needs.
How Can I Refinance My Auto Loan?
Here at Fields Chrysler Jeep Dodge RAM Asheville, we make refinancing your auto loan simple. Our team of finance professionals is here to help you through the process. Stop by today to explore your auto refinancing options!