Last updated: 30 Nov 2022 | 730 Views |
Refinancing a car loan means paying off all current auto loans and starting a new car loan with another bank or the same bank as before to reduce the interest rate.
The advantages of refinancing include:
1. A cheaper monthly vehicle loan payment.
2. A lower interest rate.
3. Receiving extra money through refinancing.
The disadvantages are having to pay a car loan for a longer period of time and having to pay money during the process.
Before refinancing a car loan, you must pay at least 50% of the current loan balance. For example, if you have a 6-year car loan, you must pay for at least three years.