Why do people refinance car loans?
There are two main reasons why people refinance auto loans: 1) To lower the interest rate they are paying and 2) to reduce the monthly payment amount. You may be able to do both when you refinance. Keep in mind that there are costs associated with refinancing car loans. Usually you need to owe at least $7,500 on the car to be eligible for a refinance. There may be a mileage limit on the car as well: for example, in some cases the car cannot have over 75,000 miles. Do your homework and research such refinancing requirements.
