In Brisbane, when you refinance a vehicle, you can take out a new loan with a new lender on new conditions to pay off your previous car finance balance. This will help you to reduce your financial commitments. Therefore, if you are looking for a more cost-effective solution, a lower monthly payment, or a lower interest rate, you need to know what leaver is going to deliver the best outcome for you when you refinance.
Will Refinancing My Car Save Me Money?
Most loans are secured by a car and paid off over time, generally over a few years, in fixed monthly, fortnightly, or weekly instalments. However, a significant choice like refinancing may be influenced by various factors such as loan term, exit fees and set up costs. Refinancing can save you big in the long term but be aware that sometimes a lower interest rate might not necessarily mean a cheaper loan.
Should Reduce Interest Rates
You might be able to get a better interest rate by refinancing.
Interest rates fluctuate frequently, so they may have dropped since you took out your first loan. With a lower interest rate, you may be able to cut the total amount of interest you pay on your car finance. Another way to save interest when refinancing is reducing the loan term so you pay less interest over a shorter period of time.
Reduce Your Monthly Interest Payments
Car finance can eat up a significant portion of your monthly income, affecting how much you spend elsewhere. As a result, it’s normal to want to cut your monthly payments, especially if you can get a better interest rate. In addition, when you refinance, you may be able to locate a loan with a longer payback duration, which can lower your monthly payments. However, keep in mind that paying less per month over a more extended time can result in a higher overall cost. That is because you will have to pay interest for longer.
Make A New Offer
You may not have gotten the best bargain when you first took out car finance, so browsing around for a better deal with better loan terms could be one of the reasons you’re refinancing your vehicle. In addition, your present loan may involve a family member or acquaintance that you wish to remove from the contract. However, refinancing is a simple way to accomplish this because you will agree to a new agreement under new terms and have the ability to remove any co borrower.
When Is A Good Time To Refinance Your Car?
There is no time limit on how long you must wait before taking out a new loan when refinancing a vehicle. You don’t even have to have made the first monthly payment on your current loan to qualify.
Credit Concierge has developed a unique network of car finance consultants in Brisbane who have access to exceptional lending packages and interest rates unrivalled in Australia. Contact us today!