Yes, you can definitely refinance your car loan through a different lender. In fact, that’s what most people do to get better interest rates. However, you have to make sure the switch is worth it.
Can you refinance at another dealership?
While some dealers do refinance, this does not apply to all dealers. If you want to see if your current dealership will give you a better interest rate, definitely check with them, but remember that shopping around is one of the best things you can do to get the best rate possible.
Where is the best place to refinance a car?
- Best Auto Loan Refinancing Lenders 2022.
- LendingClub.
- Consumers Credit Union.
- Navy Federal Credit Union.
- U.S. Bank.
- LightStream.
- Bank of America.
- Capital One.
Which bank is best for refinancing car?
Best Auto Loan Refinance Banks of 2022
- Best for Great Credit: LightStream.
- Best for Checking Rates Without Impacting Your Credit: Capital One.
- Best Trusted Name: Bank of America.
- Best for The Most Options: AutoPay.
- Best for Members of the Military: USAA.
- Best for Peer-to-Peer Loans: LendingClub.
Can I refinance my car loan with a different company? – Related Questions
Does refinancing hurt your credit?
Refinancing will hurt your credit score a bit initially, but might actually help in the long run. Refinancing can significantly lower your debt amount and/or your monthly payment, and lenders like to see both of those. Your score will typically dip a few points, but it can bounce back within a few months.
How much does your credit score drop when you refinance your car?
Refinancing affects your credit score is because the lender conducts a hard inquiry on your credit report, which will decrease credit score about 5-10 points. Again, this is temporary. If you can save hundreds of dollars in the long run, a slight dip to your credit score isn’t a huge deal.
Is refinancing a car worth it?
Refinancing and extending your loan term can lower your payments and keep more money in your pocket each month — but you may pay more in interest in the long run. On the other hand, refinancing to a lower interest rate at the same or shorter term as you have now will help you pay less overall.
Is it better to refinance a car with a credit union?
Better rates and lower fees
Because credit unions are member-owned and not for profit, all surplus money is returned back to the members in the form of lower rates, fewer fees, and better deals.
Do banks refinance car loans?
You can apply for a refinance auto loan through a dealership, bank, credit union or other lender. If you’re approved, your existing loan will be paid off and you’ll receive a new interest rate, loan agreement and loan term.
What do I need to refinance my car?
What Documents are Needed to Refinance a Car?
- Proof of Employment and Income. A refinanced car loan will typically require some proof of income.
- Proof of Residence.
- Proof of Insurance.
- Vehicle Information.
- Refinancing Your Car Now.
How long does a car refinance take?
Refinancing a car loan can take anywhere from two hours to two weeks. However, organizing your documents ahead of time can help speed up the process.
How quick can you refinance a car loan?
Strictly speaking, you can refinance a car loan as soon as you find a lender that will approve the new loan. Some lenders won’t refinance a car loan until it has been open six months or more.
What are the risks of refinancing?
8 Dangers of Refinancing and How to Avoid Them
- Refinancing When it Doesn’t Make Sense.
- Don’t Disregard Your Credit Score.
- Don’t Skip the Homework.
- Cashing Out Too Much.
- Refinancing Too Often.
- Paying Too Long.
- The “No Closing Costs” Loan.
- Finally, the Fine Print.
Is there a downside to refinancing a car?
The downsides to auto loan refinancing can include fees, additional interest if you extend the term or cash out equity, and the risk of owing more than the car is worth.
Does refinancing mean starting over?
Because refinancing involves taking out a new loan with new terms, you’re essentially starting over from the beginning. However, you don’t have to choose a term based on your original loan’s term or the remaining repayment period.