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Refinancing a Car

Refinancing a Car with the Help of BIB Finance

Monthly expenses can mount and before you know it, you could find yourself struggling under the burden of all of your financial commitments. Do not feel alone, because it happens to many people.

2017-06-05
If you want to reduce your monthly expenses, your car payment is probably going to be one of the first expenses to come under scrutiny. Selling your car and buying a cheaper model might seem like the best possible option, but it is usually not. That might reduce your monthly expenses, but really just ties you into a new contract with potentially higher interest charges. 

Refinancing a car will help to lower your monthly instalments without necessarily committing to another long contract period. Also, you get to keep your own car, which undoubtedly the one you wanted in the first place, and know the entire history of. There are circumstances under which refinancing a car can be advantageous. These may include the following:

• You want to take advantage of lower interest rates. 
• Your credit situation has improved since you initially bought the car. 
• You now earn more and would like to pay the loan off more quickly. 

Refinancing a car can be tempting, as it can reduce your monthly expenses and it is the number one reason why so many people opt to do this. This is a great way to ensure that you do not miss payments which, as you probably know, can negatively affect your credit score and cause problems for you with future credit applications. When applying for vehicle loan refinancing, it is important to take your existing car loan into account. In fact, it is vitally important, as this is what is used to determine if you are eligible for refinancing or not. How has your payment performance been over the last six months and how much is your debt when compared to your income? How you have been handling your existing car loan can have a big influence on the interest rate offered. 

At BIB Finance, we can assist you with reducing your monthly instalments and getting a lower interest rate. Instead of negotiating a better deal with your lender, we will pay off your car and restructure a loan for you that suits your lifestyle and budget. This means that you will sign a new financial contract with us, and not with your original lender. We can assist with shortening your repayment term, perhaps obtaining a lower interest rate, and getting your monthly repayments reduced without increasing your loan term too much. 

Just like any other loan, you will need to apply for and qualify for a refinancing loan. There is no guarantee that you will be approved, as each loan is treated as an individual application (even with your existing loan in place). If your loan application is approved, we will chat to you about the details of your current finance agreement. It is important to know what you owe, what your settlement amount will be and what your interest rate is. This will help you to determine if your refinance loan is a good deal or not. 

We understand that taking out a loan or refinancing a vehicle can be daunting, especially if you are doing so to reduce your monthly financial commitments. With this in mind, we will ensure that the process is kept as simple as possible for you. First, you will need to apply for the loan. Once your loan application has been approved by the bank, you will need to submit the necessary documents to us. We will then pay off your existing loan and set up your new finance agreement with us. It is that simple and hassle-free. With us, you can easily refinance your car loan and reap the rewards of making sound financial decisions for yourself. 

If you would like to learn more about the intricacies of refinancing a car, it is best to chat to one of our friendly and knowledgeable consultants at BIB Finance. We are readily available via email and telephone and also make our loan applications available online. Waste no more time! Get in touch with us regarding refinancing your car loan today.

Apply for Vehicle Refinance.