How to Refinance a Car Loan

Are you looking to save on payments for your new Kia or pre-owned model? Of course you are! An easy way for you to save every month is by learning how to refinance a car loan in Flowood. So how do you refinance a car loan? Our team atWilson KIA will help you learn what you need to know when refinancing your car below. Read on to learn the best way to refinance an auto loan with our finance experts.

How Do You Refinance a Car Loan?

When you’re learning how to refinance a car loan, it’s important to take the following steps:

• Check your credit report: The best way to refinance an auto loan is to start by checking your credit. Did you know that once a year you can order your free credit report from any, or all, of the three major credit reporting agencies? If you have a missed utility bill or something similar in Jackson, might be easy to clear up.
• Get pre-qualified before you apply: How do you refinance an auto loan without hurting your credit score with a ton of credit applications for a new loan? It’s simple, get pre-qualified. The credit bureaus regard a pre-qualification as “soft applying” so it typically doesn’t have a negative impact on your credit.
• Officially apply with a lender: Now it’s time to officially apply for an auto loan. If you live near Ridgeland, contact Wilson KIA. Remember that a pre-qualification does not necessarily guarantee that you will be approved for a loan or that you’ll get the rate the lender initially quoted you, but it’s a step in the right direction.

What to Know When Refinancing Your Car

Now that you know how to refinance a car loan, keep the following in mind:

• There may be costs to re-register your auto or transfer the title of your car: Do your research so you don’t have any ugly financial surprises.
• You may not qualify for a better interest rate: If your credit has not improved or has gone down, or interest rates have gone up or stayed the same as when you got your original car loan, you may not get a better interest rate aftercall.
• There will likely be refinancing fees: Lenders typically charge fees when you refinance an auto loan, and it’s possible that your old lender might even have a prepayment penalty. Call your previous lender so that you are informed when deciding whether or not to refinance a car loan.

Contact the Finance Team at Wilson KIA Today

Now that you’ve learned how to refinance a car loan, our team at Wilson KIA near Madison will help you start the process when you’re ready. Contact us to learn more today! From financing to comparing regular vs. premium gas, we’re here to help!