Are you trying to learn how to refinance your car loan? Have you found a better auto loan interest rate? Follow these simple steps to refinance your auto loan and get a lower rate along with a lower monthly payment!

Find a Better Loan Rate

You can browse websites, local banks, credit unions, etc. There are several online sources to help you find the lowest auto loan rates.

Determine if You Qualify

Once you’ve found the lowest rate, you can apply online or directly at the branch to see if you qualify for the rate. You’ll usually have to supply your credit information and they will run a credit check. Your credit score may take a hit if you run too many credit checks, so it’s important to keep that in mind.

Pay any Fees

Usually there are fees that must be paid, including lien holder fees, prepayment fees, re-registration fees, and more. These must all be paid before a lender will refinance your loan.

Pay off Your Current Loan

When you refinance your car, the lending company will give you a check for the remaining balance of your original loan. This allows you to pay off your first loan and effectively transfer your debt to the new company.

Transfer your Car Title to the New Lender

After your car has been refinanced, the title will be transferred to the new owner, at a (hopefully) lower interest rate.