By Staff Reports
(Victor Valley)– When it is beneficial to refinance a vehicle?
The truth is that many people who financed a vehicle in 2008, 2009 or 2010 are paying a higher rate than they would qualify for in today’s near zero interest rate environment. It also true that people that who purchased a car with less than perfect credit two or three years ago would have a substantially lower interest rate if they applied for credit now assuming they have made all of their payments on time. So the question is, when should one refinance and what is the best way to go about it?
Assuming you decide that your current vehicle is ideal for your driving needs refinancing is an excellent option to lower your payment. There are three simple things to consider when choosing this option:
1. How much longer do you reasonably expect the car to last/
2. When would be the ideal time to trade, sell or exchange the vehicle?
3. Are you on pace to payoff the car before the car starts wearing out or do you need to start paying it off faster?
The number one “No-No” when refinancing your current car is extending the term further than how long the vehicle will reasonably last without substantial repairs. The second “No-No” is extending the term beyond when you may change your mind about the vehicle. Reducing your interest rate in the refinance is certainly a help, but remember each percentage point is going to save you between $7-10/month. As a result; many people choose to extend the original term 6- 12 months in a refinance to save those hundreds of dollars. The problem with this is it commits you to the vehicle more! That’s why careful reflection of the above items is sound thinking when considering a refinance .
If you have any questions regarding refinancing, selling your current vehicle and/or purchasing a new or Preowned vehicle please never hesitate to contact me. It is my pleasure to help you with any questions you may have and always remember you have a friend in the automobile business.
For more information contact: Missy Miranda, Greiner Buick GMC- Fleet and Business Sales Manager 760.245.3451 or www.greinergm.com