A Guide to Refinancing Your Car Loan
Refinancing provides an opportunity to lower your monthly car payment or decrease the amount of interest you pay. Here’s a guide that covers the refinancing process, courtesy of the Mazda financial services team at Sansone Mazda.
Confirm that Refinancing Makes Sense for You
Though refinancing an auto loan sounds like a great idea to pretty much every car owner, it might not be possible if any of the following factors apply:
- You're behind on your payments
- Your current loan has a prepayment penalty
- You owe more than your car is worth
- You have a late-model or high-mileage vehicle
If none of these factors are relevant to your current ownership history, then consider refinancing with our Woodbridge, NJ, Mazda dealers a definite possibility.
Check Your Credit
When a financial service company considers approving a refinancing submission and confirming an interest rate, your credit plays a key role. The higher your credit score, the better your chances of having the refinancing plan approved and getting the lowest interest rate, not to mention qualifying for the best Mazda specials.
Gather the Necessary Documents
When you’re ready to refinance your car or Mazda SUV, there are several important documents you’ll want to have on hand. These include:
- Your driver's license
- Proof of insurance
- Pay stubs or other proof of income
- Your Social Security number
- Your original loan contract
When Should You Consider Refinancing?
Refinancing a car isn't for everyone, and deciding when to refinance can be difficult. That’s because in certain situations, refinancing might be limited or non-existent. However, there are times when refinancing your car can bring considerable benefits. Here are some situations that make refinancing your car a worthwhile endeavor:
- Your credit score increased
- Interest rates have dropped
- You didn’t shop around for rates initially
- Your monthly payment is too high
Talk With MAZDA Financial Services Today
For the right car owner, refinancing a car loan can decrease the monthly payment amount and lower the interest owed on a vehicle. Contact Sansone Mazda today for more tips and advice and to get started with refinancing your automobile.