Top 4 Times to Refinance your Car

We at Flatiron Finance realize that people may not understand what refinancing a car loan Colorado means—it often can just seem like a lot of complicated lingo. At Flatiron Finance, we specialize in car loan refinancing solutions across Colorado, and we are here to help you understand what it all means.

When is it a good time to consider refinancing your car loan Colorado?

Basically, if your current car loan interest rate is above 6%, you might want to investigate refinancing. To summarize: the higher your current interest rate, the better candidate you are for refinancing.

That said— refinancing is not for everyone. It only makes sense if you find yourself in one or more of these five situations since the original loan:

  1. Interest rates have dropped.

If interest rates have dropped more than a couple of points since you bought your vehicle, you have an opportunity here to save some money. In this particular situation, loans at refinance rates are treated like used car loans and thus, the rates usually are higher than a new car loan. It is important to remember that even one or two percentage  points will make a big difference over the life of your auto loan.

  1. Your credit score has improved.

If your credit report had a few negatives, or you had no credit history when you first purchased your vehicle, but now your credit is healthier, you may qualify for a lower interest rate. Extremely high interest rates (like 18% or more!!) for customers with poor credit history are the norm.

  1. You didn’t get the best rate possible when you first bought your car.

Simply having a high credit score and a clean credit history does not automatically mean you got the best rate you could have when you first bought your car. Often, car dealerships will give you a higher rate upon purchase simply because they know you don’t know any better. The extra money is a profitable to the dealer, so, they will get as high a rate out of you as they can. If you realize this may be the case with you, you may want to investigate further, as it may be a good opportunity to refinance and save some money.

  1. Your financial situation has taken a negative turn.

If you have had a financial setback unrelated to your car, and are looking for a way to  reduce your monthly payments, refinancing your car loan Colorado may be the solution  by extending your loan term, and thus resulting in lower monthly payments.

At Flatiron Finance, our goal is to help you save money and protect you and your credit from potential threats by getting a Colorado auto refinance loan.

Call Flatiron Finance today, and be sure to ask your loan specialist for details.