If you have a pre-existing auto loan and you’re looking for new financial terms, our Mazda finance team can assist with refinancing. Here’s what you need to know about refinancing to help you determine whether it is a good option for you.
What is Refinancing?
Refinancing refers to the acquisition of a new car loan to pay off the balance of your current one. It can be a good option if your financial circumstances have changed and may save you money in the long term.
When Should I Refinance My Car?
There are certain circumstances in which refinancing is a great choice. If the interest rates have dropped since you originally took out your auto loan, refinancing may help lower your interest payments. Additionally, if your credit score has gone up, you may receive better terms the second time around, so it could be worth shopping around to see what offers you’ll get.
Additionally, refinancing can be a good option if you’re having trouble keeping up with the monthly payments. A new loan with a longer term will shrink your monthly costs; just keep in mind that you’ll likely pay more in interest over time.
When Should I Not Refinance?
There are some factors you should consider when deciding whether to refinance. If you’re almost finished paying off your original loan, it may not be worth it to get a new one. Additionally, it may be difficult to refinance your vehicle if your car is old or has a lot of mileage since many lenders won’t refinance it. It’s also important to note that there may be fees when you refinance.
Refinance Your Auto Loan in Erie, PA
If you’d like to learn about Mazda refinancing, we hope you’ll visit us at Auto Express Mazda. A staff member at our finance center will be happy to assist with any questions you have and help you shop around for new financing terms.
