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How to Refinance My Car and Requirements

Here's How to Refinance My Car

When finances get start to become a little tight, many people may be thinking about ways to rid their lives of their biggest expenses. One of the biggest expenses most people have is that of monthly vehicle instalments.

2017-11-14

And because of this, most people think that to sell their existing car and downgrade is the only way to reduce their monthly costs. This is not necessary, because you have alternatives. If you wish to keep your current car, all you need to know is that you can refinance your car. Drive the same car for longer, with reduced monthly costs attached. Does this sound too good to be true? It is not, because at BIB Finance, we can assist with vehicle refinance.

What are the minimum requirements to refinance my car?

A question that we are often asked is, “What are the minimum requirements to refinance my car?”. It is important to realise that refinancing is treated like a new loan, so you need to provide documentation. This includes your ID, driving license, proof of employment (payslips and bank statements), and the balance of your current loan amount. A credit check will be carried out to ascertain whether you are a suitable candidate for a loan or not. If all is in order, the vehicle can be refinanced.

How to Refinance My Car with the Objective of Reducing Monthly Expenses

It is one thing to know that you can refinance your car to cut back on costs, but how do you actually ensure that your monthly instalments will, in fact, be lower? When you refinance your vehicle, you are taking out a loan to cover the entire outstanding balance of your current car loan contract. When the loan is granted, the amount is settled and then the vehicle’s outstanding amount is financed again. The monthly instalment is lower, as a favourable interest rate can be negotiated for you and because you can extend the timeframe of the loan, which means you have longer to pay it off. This is an effective way of reducing monthly expenses by refinancing your car.

How to Refinance My Car with Little to No Hassles and Holdups Along the Way

Refinancing can be a confusing process if you have never had to consider it before. There are a few ways in which you can avoid potential hassles and holdups along the way. First and foremost, it is important to check your current loan agreement. Make sure that there is no penalty or fee for settling the account early. It would be counterproductive to settle the vehicle loan for a savings if there will be a penalty attached that sets you back financially. In some instances, your settlement amount will be a bit less than the outstanding amount due. It is also important that you do not miss any payments during the process. You might think that you are refinancing your vehicle and miss a payment in the meantime. This will be bad for your credit rating, so always make double sure what is outstanding and what you should be doing while the process is underway. It is also important that you do not wait too long. Some institutions will not refinance a car if it is past a certain age. If you are hoping to refinance, it is better to get the process started sooner rather than later.

How to Refinance My Car with BIB Finance

At BIB Finance, we take the time to ensure that our clients fully understand the refinancing process and what is required of them. Whether you are looking to cut back on monthly expenses or if your credit score has improved and you are seeking out a better finance deal with lower interest, we can assist you professionally at BIB Finance. We make it possible for interested clients to apply for vehicle refinancing online and we endeavour to offer a quick turnaround time on loan approvals and pay-outs.

We welcome you to take the time to chat with one of our friendly and knowledgeable staff members who will assist you with the application process from start to finish. If you would like to discuss the options available to you, kindly contact us via email or telephone at BIB Finance today.


Apply for Refinance.