How to Refinance a Car Loan in San Diego

Tiny car with coins and finance paperwork


If you’re interested in lowering the monthly payments on your current vehicle and saving on interest, then it would be in your best interest to learn how to refinance a car loan! How do you refinance a car loan? The experts at Mossy Toyota are here to walk you through the process step-by-step to ensure that you’re prepared with all the relevant information. Find out more about how to refinance a car loan with the help of our San Diego finance experts! 

How Do You Refinance a Car Loan at Mossy Toyota?

The purpose of refinancing is to decrease the interest rate you are paying each month on your vehicle. Therefore, you’ll have to have an idea of how much you’re paying at the moment. Contact your lender and review your documents to familiarize yourself with your current interest rate and monthly payments. Then, follow our instructions outlined below: 

  • Evaluate Your Credit Score: If you have been paying all your bills on time, there is a good chance your credit score has improved and you could benefit from refinancing. 
  • Send Applications to Car Loan Refinancers: Apply to several automotive refinance companies to ensure you get the best rate. Make sure you submit all applications within a 14 day period to minimize the negative impact on your credit score.
  • Consider Your Offers: Take time to run the numbers to make sure any new offers coming back will get you the monthly payment you are looking for. Use our online monthly payment calculator to help you compare offers. 
  • Designate a New Loan Term: Decide if a longer or shorter-term loan is the best fit with your situation. A shorter-term loan will require larger monthly payments, but you will pay less interest in total. With a longer-term loan, your monthly payments will be smaller, but you will pay more in interest overall. 

Additional Car Refinancing Tips

In addition to the steps outlined above, you’ll want to keep the following information in mind when deciding whether or not to refinance your current vehicle: 

  • Older Vehicles: Many lenders won’t refinance a pre-owned vehicle that has already experienced major depreciation. 
  • Underwater Finances: If you owe much more than your vehicle’s currently worth, it can be harder to get approved for refinancing.
  • Fees: You will want to check your original car loan to make sure there aren’t any fees associated with paying it off early. If there are, refinancing may not be cost-effective. 

Trying to refinance your car but struggling with extensive ownership history, debt, and early pay-off fees? Reach out to the finance team at Mossy Toyota. We’re dedicated to giving you the best car buying information possible to guide you to a satisfactory repayment plan! 

Refinance Your Car Loan at Mossy Toyota Near La Jolla

Now that you have a firmer understanding of how to refinance a car loan, your next best step is to reach out to us at Mossy Toyota to begin the process today! Our finance specialists are more than happy to help you figure out a plan for refinancing your current car loan.

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