Auto Refinance: What You Need to Know
When should you refinance your vehicle?
With interest rates low, it may have crossed your mind to refinance your auto loan. Could you get a better rate or lower your monthly payment? Right now, you could use extra cash to get through the month.
This just might be the right time to give yourself some breathing room in your budget. Here are some of the reasons that may make refinancing your auto loan a smart move:
- You now have a better credit score
- Interest rates are down
- You want to adjust your term
- You have an older car and don’t want to end up underwater
- Your current loan has prepayment penalties
But are there any downsides? Refinancing could temporarily ding your credit score by a few points when the finance company makes a credit check. But it should bounce back after a few payments, and the money you save in the long run would definitely be worth it.
You’ll want to consider the length of a refinance. The interest you pay over a longer term means you may be paying more for the car in the long run. Ask yourself if you still want to be making payments on an older car. At that point, you also have to factor in increased maintenance costs.
But back to your current situation. If you need more wiggle room in your budget right now, refinancing might be the way to go. There are plenty of companies out there that refinance autos. You want one you can trust —one that will give you a good rate and good customer service, with minimal hassle. Where to start?
Check out ModeSM
Take a look at Mode, the online way to refinance your vehicle from your couch. Simply go to getmode.com or download our mobile app in the App Store® or Google Play™ store and if you’re approved, we take care of everything, from having you sign your contract electronically to getting your old loan paid off. Mode is backed by GM Financial, so it’s financing you can trust.
Listen to what Mode customers are saying.
“This has been a great experience,” said Joe M., a recent customer. Wayne L. of Kentucky echoed Joe’s sentiment. “Can I work directly with GM Financial in the future? This has been a very easy process, working with your team.”
So when you’re ready to explore auto refinance, check out Mode. We’ll be ready for you!