What Borrowers Need To Know About Refinancing a Car Loan, According To the Experts?

MELBOURNE, Australia, Jan. 25, 2022 /PRNewswire/ -- According to leading finance broker, National Loans, who provides various types of asset loans including boat finance and caravan finance, refinancing a car loan at a lower interest rate could be a simple way to cut down the time it takes to pay off the loan, which would end up saving the borrower money.

For borrowers who perhaps didn't shop around for their car loan the first time around or if their credit score prevented them from receiving a better interest rate, National Loans says they could greatly benefit by refinancing now.

National Loans explains that refinancing a loan essentially means the borrower is paying off their existing loan by replacing it with a new loan. Even if refinancing doesn't lower the principal loan amount, better terms can help save money over the life of the loan.

So, how does a borrower know if it is the right time to refinance their car loan? National Loans explains that if a borrower's credit score hasn't changed since taking out the loan, the benefits of refinancing will likely be limited or non-existent. Better credit scores can equal a lower rate and a reduced monthly repayment or faster paydown of the debt, explains National Loans. Additionally, if the borrower is close to fully paying off the loan, there is little point in refinancing.

A trusted expert for car loans and asset finance, National Loans works with Australia's top lenders to bring borrowers a low-rate car loan and fast approval from the comfort of their own home. To find out more about refinancing an asset loan such as a car or boat loan or to enquire about other asset finance including motorbike finance, contact National Loans today.

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SOURCE National Loans