How to Refinance a Car Loan

Application form for car loan and key on wooden table, close up view

Do you love your car, but don’t love the payment? If you’re feeling trapped in a high-interest car loan, it might be time to think about refinancing it. Do you want to know how to refinance a car loan? Mercedes-Benz of Cincinnati is at your service in Cincinnati. Read this guide on the best way to refinance an auto loan, and if you still have questions, talk to our finance department.

How Do You Refinance a Car Loan?

If you live around Blue Ash and are curious about the best way to refinance an auto loan, follow these steps:

  • Check your credit report: The best way to refinance an auto loan is to begin by reviewing your credit report. Once a year you can order your free credit report from any or all three major credit reporting agencies. Some issues, like a forgotten utility bill when you moved to Montgomery, might be pretty easy to fix.
  • Get pre-qualified before you apply: Do you wonder how to refinance an auto loan without hurting your credit score with a lot of credit applications for a new auto loan? It’s not hard, you just need to get pre-qualified. The credit bureaus regard a pre-qualification as a “soft application” so it normally doesn’t have any negative impact on your credit report.
  • Officially apply with a lender: Once you’re pre-qualified for a loan and find the vehicle you want to purchase, it’s time to officially apply for an auto loan. If you live around Sharonville, contact the finance center at Mercedes-Benz of Cincinnati. A pre-qualification doesn’t necessarily guarantee that you’ll be approved for a car loan or that you’ll get the rate the lender initially quoted you, but it’s definitely a step in the right direction.

What to Know When Refinancing Your Car

Now that you know the best way to refinance a car loan, there are a few other things you should be aware of when refinancing your car loan, such as:

  • There are normally refinance fees: Lenders generally charge fees when you refinance an auto loan, and your old lender might even have an early payment penalty. Call your previous lender to find out and take that into account when deciding whether to refinance your auto loan.
  • There might be costs to re-register your auto or transfer the title of your vehicle: Do your research so you don’t have any unfavorable financial surprises.
  • You may not qualify for a better interest rate: If your credit has not improved, or has even gone down since you originally financed it, or if interest rates have gone up or stayed the same since then, you might not get a better interest rate at all.

Contact the Finance Department at Mercedes-Benz of Cincinnati

If you want to know more about refinancing your Mercedes-Benz or where to get a car loan, the finance department at Mercedes-Benz of Cincinnati is happy to patiently answer all of your questions. In fact, if you’re in the market for a new Mercedes-Benz, it’s easy to apply for financing online. Review our new vehicle specials and then let us know how we can help. Contact us today.

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