May 07, 2018 by Rebecca Crommelin
When you hear the word ‘refinancing’, most of us would probably think of our home loans, BUT did you know that it also applies to car loans as well?
If you’re paying off a car loan at the moment, it’s worth considering refinancing and possibly switching to a different lender.
As there are several benefits that refinancing could offer you;
1. Lower interest rate
Interest rates are always changing and there’s a chance that your car loan rate may have fallen since you initially took it out. By refinancing, you can secure a lower interest rate which will reduce your monthly repayments and your interest charges. This could save you hundreds of dollars over the life of your car loan, which means more savings or money better spent elsewhere. When refinancing, you might also be able to reduce the amount you’re required to repay every month by extending the loan term. This is a good option if you’re struggling to keep up with your monthly repayments and need to find some additional funds.
2. Save on fees
Some car loans come with a monthly fee, which over the life of your loan, really adds up. Refinancing your loan could help you to switch to a product with low – or zero – monthly fees.
3. Flexibility
By refinancing your car loan, you could also benefit from valuable features that you don’t currently have with your existing lender. Some of these features may include redraw facilities, ability to make additional repayments, and easier account management systems. These features are great if you are looking for more flexibility or if you are wanting to pay off your car loan faster.
Book an appointment with our car loan experts today – we can review your current car loan and find out if refinancing is the best strategy for you. If it is, we’ll take the hard work out of comparing lenders and find the most competitive car loan for you and your needs.
Want to know more about our car loan services and how we can help you secure competitive car finance?
Find out more about our car loan services
