How to Refinance a Car Loan

Tiny car with coins and finance paperwork


Did you know you can lower your monthly payments on your car loans? Just like a home loan, refinancing a car loan is an option for many Louisville, KY drivers. But how do you refinance a car loan? Don Franklin Auto covers what to know when refinancing your car, the best way to refinance auto loans and other tips below! Consult our finance center for car loan advice!

How to Refinance a Car Loan: Step-by-Step 

So, how do you refinance a car loan? Here are some step-by-step instructions to simplify the whole process for Russel Springs, KY drivers: 

  • Check Your Credit: This is one of the most important things to do, because all financing decisions are based upon your credit. 
  • Figure Out Your Payments: Look at your bills or use a payment calculator to figure out exactly how much you’re paying and what you would like to pay.
  • Talk to Multiple Lenders: Most dealerships like Don Franklin Auto work with multiple lenders when they are working out a deal. The best way to refinance a car loan is to compare offers and choose which one looks best for your needs. 

What to Know When Refinancing Your Car

The list of what to know when refinancing your car is fairly short, but important. The best way to refinance a car loan is to be prepared, so check these out: 

Helpful Tips for Refinancing Your Car

  • As noted above, know your credit score. You’ll get a better rate if your credit score has improved. Deferring payments will lower your credit score. 
  • There will probably be fees associated with refinancing your car
  • The older lender may also charge a penalty. 
  • In some states, refinancing a car loan also requires re-registering the vehicle and transferring the title. 
  • If your car is more than eight years old, 100,000 miles on it, or your loan is underwater, you probably won’t be able to refinance your car. 

Car Buying is Made Simple at Don Franklin Auto

“How do you refinance a car loan?” is one question among many we get at Don Franklin Auto. We’ve served a lot of customers in our large dealership family, and we pride ourselves in being able to help Lexington drivers get their next car quickly and easily! Contact us today to set up an appointment with our finance center and refinance your car.

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