Refinancing can help reduce monthly payments. Our Nissan finance team at Bedford Nissan goes over everything you need to know about refinancing your car loan.
What is Refinancing?
When you refinance a car loan, you take a new loan to pay off the balance in your current loan. This can be beneficial if your new loan has a lower interest rate or a longer term, which can reduce your monthly payments.
Should I Refinance My Car Loan?
There are a few factors that can help you determine if refinancing is a good option.
If your credit score has improved, it may be a good idea to see what new loans are available to you. A higher credit score potentially leads to a lower interest rate. This could significantly reduce how much you pay over time in interest. Additionally, if interest rates have decreased since you initially began financing your vehicle, you may want to shop around to see if you can find a new plan with better terms.
Refinancing is also a good idea if you need to lower your monthly payments. In this case, you can try to find a loan with a longer term. Keep in mind, however, that the longer your financing term is, the more interest you’ll pay over time.
Refinancing may not be a good idea if:
- Your car is old or has high mileage
- The refinancing fees are higher than the amount you’d save
- You’re almost finished paying off your loan
Refinance Your Nissan Car Loan in Bedford, OH
At Bedford Nissan, our finance experts can assist you in refinancing your auto loan. The goal is to get you the best rate and terms possible for your financial circumstances. Get in touch today with your questions and to start the process.
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