One of the most common questions that we receive here at our Mazda finance center is regarding refinancing a car loan. Refinancing your auto loan could be a smart way to reduce your monthly expenses and potentially pay off your vehicle sooner than you had planned. Here at Fields Mazda of Asheville, we are here to help you understand the benefits of refinancing your car loan, as well as provide an overview of how it works.
What is Refinancing?
Loan refinancing involves replacing your existing car loan with a new one, typically with different terms, such as a lower interest rate or a longer repayment period. This can lead to a significant amount of savings over the life of your loan.
What are the Advantages of Refinancing?
- Lower Monthly Payment: Refinancing to a longer loan term can decrease your monthly payments, freeing up more cash flow. Keep in mind that you may pay more interest overall.
- Lower Interest Rates: If interest rates have dropped since you took out your original Mazda loan, refinancing can get you a lower rate, reducing your monthly payments.
- Shorter Loan Term: If you can afford higher monthly payments, refinancing to a shorter term could help you pay off your car faster and save on interest payments.
When is Refinancing Right For You?
Refinancing can be a good option for you if:
- Your credit score has improved: A better credit score can qualify you for lower interest rates.
- Interest rates have fallen: Take advantage of these lower interest rates to lower your loan costs.
- You need to lower your monthly payments: Refinancing can offer financial relief if you’re struggling with your current payments.
Refinance Your Car Loan in Asheville, NC
If you are considering refinancing your Mazda loan in Asheville, NC, our experts here at Fields Mazda of Asheville are here to help. Contact us today to learn more about refinancing and how it can be beneficial to you.
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