Can you refinance a car loan?

When it comes to refinancing, most of us probably think of our home loans, but did you know that it applies to car loans as well?

If you’re currently paying off a car loan, it’s worth looking into refinancing and considering a switch to a different lender.

There are number of benefits that refinancing could offer:

1. Lower interest rate

Interest rates are constantly moving and there’s a chance that they have fallen since you first took out your car loan. By refinancing, you can secure a lower interest rate which will lower your interest charges and your monthly repayments. This may save you hundreds of dollars over the life of the loan, meaning more money for you to save or use elsewhere. You may also be able to lower the amount you need to repay each month by extending the loan term. This is a good option if you’re struggling with your monthly repayments and need to free up some cash.

2. Save on fees

Some car loans may come with a monthly fee and, over time, this will add up. By refinancing, you may be able to switch to a product with low – or no – monthly fees.

3. Flexibility

Refinancing your car loan allows you to benefit from useful features that you don’t have with your current lender. Examples include the ability to make additional repayments, redraw facilities, or easier account management systems. These are handy if you are looking to pay off your loan faster or want more flexibility.

Make an appointment to speak to your Mortgage Choice broker who can assess your current car loan and work out if refinancing is the best strategy for you. If it is, they can take the legwork out of comparing lenders and selecting a competitively priced loan for you.

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