BIB Finance

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BIB Finance

Refinance Your Car

Refinance Your Car for Lower Monthly Instalments 

If your monthly expenses are dragging you down and you would like a little financial relief, taking a close look at your budget and expenses is a good place to start. At the top of your list of highest expenses, you are bound to find that your essentials such as rent, medical aid and your car are your biggest expenses. Cutting back on costs on some or all of these can be done, but requires some planning. BIB Finance can assist you with reducing your monthly vehicle instalments. No, we are not suggesting that you downgrade to a cheaper car. We can assist you with refinancing your existing car loan so that the repayments each month are more affordable. 

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Not everyone will qualify for car refinancing. In this sense, refinancing your car will be like taking out a new loan, settling the existing loan amount, and starting afresh. While we can handle your refinancing application for you and ensure that you have the best possible chance of being approved, you will need to have been paying your existing instalments up to date and on time. How responsibly you handle your current loan will determine whether or not a bank or lending institution will approve your refinancing application. Affordability is another thing to think about. Your ratio of income versus debt is important. Carrying out an affordability assessment can determine if you are a viable candidate for a new loan. It might sound complicated or scary, but it s really rather simple, especially if you have our professional and knowledgeable team on your side. 

Deciding whether to refinance your car is something that will require a bit of thought. We understand that making any changes to a loan or taking out a new loan is a commitment and therefore not something to be taken lightly. So, consider the instances in which it would be beneficial to refinance your car:

You want to take advantage of a lower interest rate. A few years ago, when you took on your car loan, you might have been exposed to a higher interest rate. Refinancing your loan can present you with the opportunity to enjoy lower interest. 

Your credit situation has improved. As everyone’s credit score plays a role in the interest rate offered, you will benefit from refinancing your loan if your credit situation has improved a great deal since you initially bought the car. This means lower monthly premiums. 

You want to pay the car off sooner. This is not always the case, but if you were promoted at work or came into some extra money and want to get your car paid off, you can refinance it in order to shorten the repayment term period. While your monthly instalments will increase, your interest rate may even reduce and you could be an outright car owner in a much shorter time. 

Make sure that, when refinancing your car, you are not just extending the repayment period and getting into more debt. It is important to discuss the various objectives of vehicle refinancing with one of our consultants before you go ahead. Remember that we will put together and review your application for refinancing. With a good credit history and motivation to the bank, you could soon be enjoying a repayment plan or contract with more favourable terms. 

We pride ourselves on being able to offer our clients a confidential, secure, and reliable financial service. We are experienced in creating structured financial deals designed to suit the lifestyles of our clients. We have good relationships with a number of South Africa’s leading financial institutions including ABSA, FNB, Standard Bank, and WesBank. In addition to being able to assist you with all your refinancing needs, we also provide additional services including loans for cars, motorbikes, boats, dealer F&I finance, and leisure finance. 

If you would like to learn more about what is involved in refinancing your car, we welcome you to get in touch with us at BIB Finance. We are available via email and telephone and will assist you with understanding the process and help to spur it on too. Get your car refinanced with BIB Finance today.