Buying a car can be stressful, especially for those who need an auto loan before the purchase. Good rates for auto loans depend on several factors, including your credit score, cash on hand, and where you receive the loan. With so many contributing factors, there’s a good chance you may not have received the best loan rate at purchasing time. But there’s a solution. Refinancing is how you can make things right. 

Refinancing an auto loan, in its simplest terms, means taking out a new loan to pay off the previous loan. 

The question is, why should a car owner refinance their auto loan? 

Your Car Note Payment is Too High 

Cars are expensive. According to Experian’s “State of the Automotive Finance Market” report, consumers pay an average of $742 per month for a new car and $525 for a used one. 

There are ways to buy a car responsibly, but that doesn’t always guarantee favorable payment options. If you’ve increased your income and credit score or decreased your debt, your budget could benefit from refinancing your auto loan.

Your Income Decreased From the Time of Your Initial Auto Loan

While refinancing an auto loan can be a great move if you’ve increased your salary, it’s also a good strategy if you’ve experienced a salary decrease. 

A refinanced loan will feature new interest rates, new monthly payments, and a loan term that could be more favorable. All of which can lessen the strain on your wallet. Achieva provides excellent auto refi options to qualified buyers and currently supplies free GAP insurance on all eligible refinances. 

You’re Not Happy With Your Current Lender

It’s an unfortunate fact that the car-buying experience is a transactional one. Buying a car from a dealership or car lot may have gone well, but dealing with an unforgiving lender can be a real pain. 

Maybe your lender isn’t always helpful when financial issues arise, can’t answer simple questions about your loan, or they’ve done other things to sour the relationship. 

There’s nothing wrong with moving on and building a better relationship with a new lender. 

To conclude,  if you find yourself in any of these categories, it may be time to refinance your auto loan. Consider your options and make a change. Talk to an Achieva professional today to see your options. 

Need more financial content? Continue following the Achieva Life Blog for additional money-saving articles.