We see it often – buyers secure Toyota financing but then circumstances change. They may wish they could have gotten better terms or they want a lower monthly payment. That’s where refinancing comes in – and we can help at Sansone Toyota.
What Does Refinancing Entail?
When you refinance your loan, you are essentially applying for a new loan to replace the original one. You can refinance with your existing lender or apply for financing from a new lender. This gives you the opportunity to secure new rates or adjust your loan’s terms.
What Do I Need to Refinance?
The refinancing process is similar to applying for an auto loan. To refinance a loan, we’ll run a credit check and will need to verify your income. We’ll also need proof of residency and auto insurance.
Is Refinancing Right for Me?
Before you attempt to refinance your loan, it’s important to carefully do your research to ensure that it will be beneficial to you.
Here are some situations in which refinancing can be advantageous:
- Interest rates have dropped (so you’ll save on interest costs)
- Your credit score has improved and you’ll get better rates
- You want/need a lower monthly payment (you can refinance to longer terms)
When Should You Avoid Refinancing?
Before you refinance, you want to make sure that you won’t end up paying more in the long run. For example, if you will owe a sizable prepayment penalty or application fees, it may not be beneficial to refinance. Also, if you’re upside down in your loan or have a high-mileage or older vehicle, you likely won’t qualify.
Refinance Your Auto Loan Today
If you still have questions, don’t hesitate to reach out—we’d be happy to help. Ready to proceed? Stop by Sansone Toyota to refinance your auto loan today!
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