Sometimes, drivers rework their Mazda financing package to adjust their monthly payments and interest rate. Before you choose to refinance, though, it’s important to learn about the process and determine whether it’s the right move for you. Here’s what to know about refinancing with the friendly experts at Middletown Mazda.
What’s Required to Refinance an Auto Loan?
Refinancing your loan involves gathering some documents and information. Be sure to have your driver’s license, proof of residence (e.g., a utility bill), your most recent paystub, the vehicle’s registration documentation, and your insurance card handy. This will help our Mazda financing professionals expedite your paperwork.
On top of paperwork, your car loan itself may need to meet certain requirements. If you only recently took out the loan, you may not be able to refinance, for example. Some lenders may also require a minimum balance left on the loan as well.
Pros and Cons of Refinancing
Refinancing your car loan can reduce your monthly payments, especially if the interest rate is lower than when you got your initial loan. This is a huge benefit for drivers who want extra cash each month, and for those who want to pay off their loans more quickly. In the long run, refinancing your loan and making all of your payments on time can also increase your credit score.
However, there are some disadvantages to refinancing. For example, your credit score will temporarily decrease, as we’ll need to run a credit check to help us outline your new loan terms. And, since interest rates fluctuate, your new Mazda financing package could include a higher interest rate than your original one.
Come See the MAZDA Financing Experts in Middletown, NY
Determining whether to refinance your auto loan is a big decision. We’re here to help you make the right choice by walking you through your options and the process. If you’re considering getting a fresh loan, come in and chat with the finance experts at our Mazda dealership in Middletown, NY.
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