How to Refinance a Car Loan

Do you love your Mazda, but not the payment? If you’re feeling stuck in a high-interest auto loan, it might be time to think about refinancing your car. Do you want to know how to refinance a car loan? Cooley Mazda in Rensselaer is at your service. Read this guide on the best way to refinance an auto loan, and if you have questions about the process, talk to someone on our finance team.

How Do You Refinance a Car Loan?

How do you refinance a car loan? If you live in the Troy area and want to know the best way to refinance an auto loan, find out below:

• Review your credit report: The best way to refinance an auto loan is to start by checking your credit report for accuracy. Once a year, you can order your free credit report from any or all of the three major credit reporting agencies in the U.S. Some issues, like a forgotten utility bill when you moved from Albany, could be easy to remedy.
• Get prequalified before you apply: If you’re curious about how to refinance an auto loan without hurting your credit score by applying for a bunch of new auto loans, don’t worry. All you need to do is get prequalified. The credit bureaus consider a pre-qualification as a “soft application,” so typically, it doesn’t harm your credit report.
• Officially apply with a lender: Once you’re prequalified for an auto loan and find the vehicle you want to purchase, you’ll need to apply for an auto loan officially. If you live near Latham, contact the finance team at Cooley Mazda. A pre-qualification doesn’t guarantee that you’ll be approved for an auto loan or that you’ll get the interest rate the lender initially quoted you, but it is a step in the right direction.

What to Know When Refinancing a Car

Now that you know the best way to refinance an auto loan, this is what to know when refinancing a car:

• You’ll likely have to pay refinance fees: Lenders generally charge loan fees when you refinance a car loan, and your old lender might even charge you a prepayment penalty. Contact your previous lender to determine if there is a prepayment penalty and consider that when deciding if you want to refinance your auto loan.
• There may be costs to re-register your auto or transfer your vehicle’s title: Do your research first, so you don’t have any negative financial surprises.
• You might not qualify for a better interest rate: If your credit has not improved or has even gone down since you initially financed it, or if interest rates have increased or stayed the same, you may not get a better interest rate on a new loan.

Contact the Finance Team at Cooley Mazda Today

If you want to know more about refinancing your Mazda, the finance team at Cooley Mazda is happy to answer all of your questions and walk you through the process. If you’re in the market for a new Mazda, you can apply for financing online. Browse our new vehicle specials, and then let us know what we can do to help. Contact us today.