Refinancing a car loan can be the best way to get away from a car loan that no longer works for you. People often stay with a bad lender because it seems too difficult to move to a new lender or it’s time-consuming to compare all the loans available.
CarClarity is aimed at fixing many of the issues associated with getting a new loan and refinancing existing ones. If you have a bad loan and want to change your lender, completing a search with CarClarity will give you several options to choose from. We can take your details and show you our choices for the best loan from over a thousand loan products from over forty lenders.
Nobody can tell you when it is the right time to refinance a car loan. But you may consider refinancing an old car loan a few times during the course of an existing loan.
Saving money on repayments
Over the term of a loan, many things can change. For example, you may have started a new job, and you’re getting paid more than you were when you first took out a car loan. Banks and other lenders often offer you a higher interest rate if you appear to be high risk. When you are on a good income, your risk is reduced, and lenders are willing to be more flexible; after all, you could choose to change lenders!
If your work arrangements have changed recently, it could be the perfect time to use CarClarity for a car loan comparison and see if you can get a better deal.
You’re not getting any services from your current lender
Many people will look for the car first and the loan second when buying a new car. In this scenario, some people will use the lender as suggested by the sales yard. Unfortunately, many of these lenders benefit the car yard and may not offer many services to their real customers!
If you are exhausted by waiting on the phone or stumped by an online system that never seems to work correctly, it may be time to change lenders. Finding a car loan with low interest is ideal, and when matched with a lender that offers excellent service, you’ve got the best possible chances of landing great deals!
If you’re considering refinancing a car loan, then having a clear understanding of how it works can be the best way to get started. Many people will refinance a car because they’re unhappy with their current lender, or they’re looking to save money by choosing a lender that can offer a better interest rate or more services.
The first stage of refinancing any existing loan is to find a new lender. At CarClarity, you can enter your details, and we’ll provide your top matches for a loan. Then you can select one based on your preferences. From there, you’re ready to get started refinancing your existing car loan.
Refinancing a car loan is much the same as taking out a new loan. When you make your application, the lender will take you through the process, and they’ll ask if the loan is paying out any current loans. From there, they will request information about your current loan, and you may need to provide a loan payout figure from your current lender. After you have provided all the requested information and your loan is approved, your new lender will pay out the existing loan and take care of any additional paperwork as required.
You may find that the main benefit of refinancing a car loan is that you could be paying less in terms of monthly repayments on your loan, so they’re more manageable. A common aspect of car loans is that people tend to take the first one they come across. For example, if you have a long relationship with your bank, you may use their services for a car loan without looking into other lenders. Loyalty is the most common cause of people spending more money than they should.
When you complete a car loan comparison check with CarClarity, you’ll find many other loan options available, and some of these could offer better interest rates than you currently have. Even if you’re happy with your current loan, it never hurts to check and see if better options are available. Refinancing a car loan and getting a lower interest rate could save you hundreds of dollars annually!
Another reason the refinance your car loan, although it is less common, is when you’re unhappy with your current lender. Finding some of the best car loans in Australia can involve more than looking for the lowest interest rate. While having car loan finance is unavoidable for some people, you want to ensure you’re with a lender who’ll be there when you need answers. If your current lender seems unavailable when you have questions, it can be a clear sign you need to move on and find a new one.
When it is time to refinance your car loan, you can use CarClarity to find the best lender for your situation available from our top selection of financial institutions. Using our tool, you can supply us with information such as the amount you need to borrow, your desired loan term, and your current income. We’ll then provide you with your top three matches, and you can go ahead and determine which among them best suits your situation.
You can choose any of our suggested options and get started on refinancing a car loan. So whenever you need to make a car loan rates comparison, look no further than our platform at CarClarity.
Start your search for the best rate car loans among our select lenders today!
CarClarity is an online financial comparison service and is owned and operated by CarClarity ACL Pty Ltd ABN 50 606 243 243 / ACN 606 243 243 and Australian Credit License 478 874.
CarClarity provides you access to our expert team who can assist in selecting suitable car loans from our panel of 40+ lenders and over 1000 financial services products. The financial products compared on this website do not necessarily compare all features that may be relevant to you and CarClarity does not compare all rates in market.
All applications are subject to the credit provider’s credit assessment and loan eligibility criteria. Terms, conditions, fees and charges apply. Information provided is factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. CarClarity may receive a commission from lenders we recommend.
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