Automative News

5 Things To Do if Auto Loan Refinancing is Too Expensive


If you are interested in refinancing your auto loan, chances are you have already determined how much it will cost. But what if that number is higher than you expected? Here are five things to consider if refinancing your car loan is too expensive.

Trade in the Car

If you have owned your vehicle for some time, it may be worth trading in the car and getting a new loan with a lower interest rate. This will help reduce the monthly payments on your auto loan and make it easier to afford each month.

If possible, consider using this option instead of refinancing with another lender because there are no fees associated with trading in an old vehicle toward buying another one. The only cost is losing equity in your current car, which shouldn’t be too much.

Modify Your Loan

If you are not interested in refinancing your current auto loan, another option is to modify it. The lender might be willing to work with you on lowering the interest rate, extending the term of your loan, or lowering its monthly payment amount.

If none of these options are feasible for whatever reason (maybe they don’t want to change anything), consider looking at other car dealerships low credit offering better terms than what you currently have.

Surrender The Car

If your car is worth less than what you owe, consider surrendering it. This means selling the car for cash and paying off the remaining balance of your loan. The lender will send you a check for any amount above what they sold it for and take possession of your vehicle.

If you want to do this, be sure to check with them first before proceeding with it, and remember that not every lender allows surrenders. They may require at least one payment on time before allowing this option though some might make exceptions if there are extenuating circumstances.

Add a Co-Signer to Your Refinancing Application

A co-signer is a person who agrees to take responsibility for the loan if you fail to do so. The lender will look at both applicants’ credit scores and incomes, but the co-signer’s information will also be included.

If one person has good credit and the other does not, adding a co-signer can help offset some of this difference. The best way to find someone who qualifies as an ideal candidate is by asking friends or family members who can help financially when needed and who won’t mind doing so.

Sell the Car Privately

To sell your car privately, first, find a buyer. You can do this through Craigslist or by posting in Facebook groups. Once you find someone who wants to buy your car, take it to a mechanic for an inspection and title transfer before meeting with them in person.

And be prepared for some negotiation. The buyer may try to get a lower price than what’s listed on Craigslist because he knows that few options are available for people who need cash fast but haven’t been able to refinance their loans.

If you’re looking for a way to pay off your car loan Calgary, it might be tempting to refinance it. But if you can’t afford the higher payments, don’t do it. Instead, consider other options, such as selling your car or taking out a personal loan from another lender offering lower rates than banks.



Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox, everyday

We don’t spam! Read our privacy policy for more info.

Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox, everyday

We don’t spam! Read our privacy policy for more info.

Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox, everyday

We don’t spam! Read our privacy policy for more info.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button