How to Refinance an Automobile

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Refinance an automobile when the interest rates are at least 2 percent lower than what is currently being paid. Avoid refinancing over a longer period of time than is appropriate for the age of the vehicle. Consult a lending institution for more information on car loan refinancing with advice from a registered financial consultant in this free video on auto loans.

Part of the Video Series: Personal Finances & Money Management
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Video Transcript

This is financial adviser, Patrick Munro, talking about how to refinance an automobile. Refinancing an automobile is an opportunity available to you to lower your payment on one of your most important assets, which is your automobile. You can refinance your home when interest rates come down. Why not your automobile? But in this particular case, you do not want to move forward with the refinancing of an automobile unless a couple of things are clear. Number one, the refinancing must be to two percentage points lower than the prevailing rate that you do now have. Otherwise, it won't be worth the time or the effort. Also, make sure that they don't refinance your vehicle over a longer period of time than is appropriate for the age of the vehicle. If your vehicle's already five years old, you don't want to refinance it over a period of an additional five years. The interest you will pay is, well, significantly ridiculous. And you don't want that. So bear those two factors in mind. And if there are two full percentage points difference from your prevailing rate and you get an appropriate term to do so, by all means, it's going to save you money. And if you've saved your money, you can invest more for your future. This is Patrick Munro talking about how to refinance your vehicle.


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