Purchasing a new vehicle is an exciting experience. Unfortunately, this initial excitement often fades once you begin making loan payments. If you’re dissatisfied with your car loan, you might wonder, can you refinance an ATV loan? Refinancing a car loan can save you money and help you repay your loan faster.
This post will explain the best times to refinance your car loan.
If Your Credit Score Has Increased
Your credit score is essential for car financing because auto lenders classify applications based on credit tiers. Your credit score influences the yearly percentage rate you receive and whether you will receive an offer. If your credit score has improved since you purchased the vehicle, you may be eligible for a better financing deal. Securing a lower APR could save you a significant amount of money in interest over the life of your loan.
Therefore, if you’re still riddled with the question, can you refinance an ATV loan? The answer is yes, as long as your credit score has gone up.
If You Wish to Modify the Loan Term
If your financial situation has changed, refinancing your car loan makes sense. Maybe you lost your job and need a lower monthly payment, or maybe you got a raise and can pay off your loan faster. To get a lower payment, you could extend the length of the loan, known as the loan term, on your car refinance. Still, it’s worth noting that while a longer term lowers your payment, it raises the interest you’ll pay over time.
It also works the other way around: if you shorten the loan term, your monthly payment will rise while your overall interest payment will fall.
If the Loan Interest Rates Are Low
If the car loan rates have fallen since you took out the loan, you may be eligible for a lower APR. Even if your credit score hasn’t changed much since you took out your original loan, a small rate change can save you money on interest. You can check auto loan statistics, such as average car payments and rate changes, on the internet to keep up with industry trends.
If You Have Positive Equity
If your vehicle’s value exceeds what you owe, you can get a better auto refinance rate. This is known as having positive equity. Contact your current lender to determine your loan-to-value ratio, then divide it by the value of your vehicle. You can find out how much your car is worth by consulting internet industry guides and seeing what dealerships and private sellers are asking for it.
If You’re Looking for a New Lender
Some people refinance simply because they dislike the way their current lender operates. Poor customer service or record keeping can seriously damage your relationship with your lender. If you are discontent with your current lender, refinancing with a new one may help alleviate some of your concerns. You can compare lenders online while shopping for a car loan refinance.
If you’re still asking yourself, can you refinance an ATV loan? The answer is yes if you fall into any of the above categories. Refinancing your ATV loan will lower your monthly payments and help you balance your current and long-term financial goals.
