Refinance a car

• Are interest rates lower than when you bought your car? You’ll pay less toward interest each month, and you could use those savings to pay down the principal balance on your loan quicker.
• Has your credit score improved? You’ll likely benefit from lower interest rates, which accelerates your savings over the remainder of your loan.
• Has your income increased? If you’ve maintained the same income or received a raise, you could be eligible for a different monthly payment to pay down your loan sooner.

With traditional refinancing, your new lender will pay off your old loan in full and provide a new loan with new terms. The new loan will come with a fixed interest rate and fixed term.

With cash bank refinancing, you’ll borrow against the equity in your vehicle. If your car has a higher appraised value than your loan balance, you have equity in your vehicle. For example, if you have a $10,000 loan balance and your car appraised at $15,000, you have $5,000 of equity in your car. With this type of refinancing, you’ll receive a check for the amount of equity you wish to borrow against your vehicle. The amount you borrow is added to your new loan balance, and you will receive a new interest rate and loan term.