Hyundai Finance Tips: Refinancing an Auto Loan

Refinancing is a strategy that may help car owners manage their budget by paying off their existing loan by taking out a new loan. Our Hyundai finance center at Blaise Alexander Hyundai of State College can be of assistance. Here are some of the best practices we recommend to help you manage and budget for the refinance process.

Prepare the Necessary Documents

You’ll need the same documents you prepared when applying for the original loan. Examples include proof of employment and/or pay invoices, auto insurance papers, and paperwork on your current loan.

Monitor Your Credit Score

Refinancing may be a good option if your credit score has improved since you took out the original loan. The higher credit may make you eligible for a lower interest rate. On the other hand, if the score has remained the same or even dipped, securing a new loan may be difficult.

Aim for a Shorter Loan Term

If your finances have improved since taking out the initial loan, you may want to consider refinancing and taking out a shorter loan term. While you’ll pay more each month, the shorter repayment term means you pay less in interest over the life of the loan.

Get a Fixed Interest Rate

Your current loan may already have a fixed interest rate. However, it may also be a variable rate, meaning the interest fluctuates with the market. If your current loan is the latter, you may refinance to get a more stable fixed rate. This may make budgeting easier.

Get Loan Assistance at Our Hyundai Finance Center in State College, PA

If you’re contemplating refinancing a loan with an existing Hyundai vehicle, come by Blaise Alexander Hyundai of State College. Our finance center can determine whether you qualify for a new loan. We’ll look at your current credit score and other required documents to determine eligibility. Get started today!

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