How refinance on car loans works
There can be a whole bunch of reasons to consider refinancing your car loan. Perhaps you think you could be on a better rate, or your circumstances may have changed. Either way, when it comes to the refinance of car loans, there can be a whole bunch of benefits depending on the reason for the refinance. The cost effectiveness of refinancing your loan at a cheaper rate can potentially save you some serious dollars. Or if you’re refinancing due to a change in financial circumstances to reduce your monthly outgoings, we can also extend your term to reduce your repayments.
Looking to reduce payments?
Another benefit when looking to refinance car loans is to or help reduce the payments on your loan, typically this is done by extending the period of the car loan – but if you’re worried about affordability or the risks associated with not meeting your current payments, then this could be a viable option.
Wanting some extra cash?
Life can change, sometimes unexpectedly. If you’re looking at ways to access some cash, refinancing car loans can possibly provide a much easier and cheaper option than an unsecured personal loan to get the funds you need.
Where to start first
Even before deciding to refinance your car loan, the best first step to take is to work out where things sit right now by seeking financial advice from a registered financial provider.
If the reason you’re looking to refinance is to extend the term of the loan, things to consider are:
- The additional cost of credit incurred
- Additional documentation fees
- Early settlement or repayment fees of original loan
- Is this decision financially in my best interest?
If the reason you’re looking to refinance is to reduce interest rate and keep the term of the car loan the same, things to consider are:
- Additional documentation fees
- Early settlement or repayment fees of original loan
- Am I doing this at the right time (ideally within first 12-18 months depending on original loan term)
- Is this decision financially in my best interest?
Now you’ve got these details, you can start working out whether it’s worth considering refinance.
Ready to refinance your car loan?
Platinum Finance is ready to help you! Contact one of our friendly team members to help guide you through the process. Happy motoring!
