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Refinance My Car

Can I Refinance My Car to Cut Back on Expenses?

If you are wondering where and how you can refinance your car, you are not the only one. Thousands of people refinance their cars at some point during their finance contract and so can you.

2018-01-17

The benefits of refinancing your car can outweigh the benefits of selling it, and we will tell you why. Many people think about selling their car and downgrading to a cheaper car (smaller or older model) in order to cut back on monthly expenses. While this can help you to reduce monthly expenses, it can also have a negative impact on your lifestyle. A smaller or cheaper car can mean discomfort (or having to get used to less space), feelings of dissatisfaction and general discontent. Depending on how much smaller you go, you might even end up having to give up a few hobbies or activities, if your car cannot carry the load or go the distance.

Why Should I Choose to Refinance My Car? What Are the Real Benefits?

When you choose to refinance your car, you can keep driving the same car that you love and are used to, and also benefit from expense relief, as your monthly instalments will be less. There is no test driving to be done and, best of all, you know exactly what to expect from your car. In some instances, buying a cheaper car can result in a few nasty surprises. When you refinance your car, nothing changes in terms of your lifestyle, and you will find that you have more cash available each month to use on essential expenses or even to spoil yourself.

Where Should I Refinance My Car?

Regardless of where your car is currently financed, the team at BIB Finance can assist you with your refinancing. In fact, we can probably negotiate a better interest rate for you, which means that you get to save more. We deal with all leading financial institutions, including MFC (a division of Nedbank), FNB, Absa, Standard Bank, and WesBank.

How Do I Refinance My Car with BIB Finance?

The first thing that you need to know is that refinance loans are brand-new loans, so yes, you will need to apply for a loan as if it is for the first time. This means that you must prove your income and a credit check will be used to ascertain what your credit rating is and what sort of loan you are entitled to. We will ensure that we gather comparative rates from all leading banks. The loan applied for will be for the amount that you owe on your current car finance contract. As your capital loan amount will be less than your original loan amount and your interest rate will be low, your monthly instalments will be reduced and there will be no need to sell your car or downgrade to cut back on costs. You can apply for vehicle refinancing online and, once your supporting documents have been received, we can provide you with an offer. It is as simple as that!

When Is It a Good Idea to Refinance My Car?

It is a good idea if you find that your monthly expenses are affecting your cashflow. It is a convenient way to bring down your expenses without negatively impacting on your lifestyle. Refinancing is not only for those who are feeling the financial pinch though. It is also an option for those who find that they are in a better financial position than they were before. The improved credit rating can entitle you to a lower interest rate, which means that you could end up paying back less by restructuring your vehicle finance deal.

Remember that your credit rating and your affordability assessment will determine whether refinancing is a good option for you or not. We encourage you to chat to our consultants about your specific situation so that we can provide you with helpful advice, guidance, and insight. We will be able to advise you on the best options available to you and ensure that you fully understand the existing and potentially new vehicle finance deal. For more advice and information, contact us via email or telephone at BIB Finance today.


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