When Does Refinancing a Used Car Loan Make Sense?

When Does Refinancing a Used Car Loan Make Sense?

25 January 2023
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Id: 30773
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Description:

Owning a car has never been this easy, all thanks to car loans. However, in the past few years, more and more people are opting for car loan agent in Kanpur as well as refinancing car loans. Now, the question arises how should you go about it? Bhumi Finance is here with a handful of suggestions that can tell you when and how you can refinance a user car loan in Kanpur. So, without any further ado, let’s get started.

Be ready to pay the penalty.
Does your current lender subject you to a prepayment penalty for paying off your loan early? At Bhumi Finance, car loans don’t have such penalties, but if you're subject to one, do the math: If the amount you save by refinancing is significantly greater than the penalty, refinancing may still be a good idea.

Significantly low-interest rate.
If the interest rate you qualify for today is significantly lower than your current loan rate, it may be a good time to refinance a car. If it’s the same or higher, it’s probably not the right time to refinance. Remember, though: If you’re associated with Bhumi Finance for a long, you may qualify for an interest rate discount of up to 0.50%. If you come across a new/refinancing loan option at a lower interest rate during the course of your existing car loan, you can choose this new option and lower the overall interest that you pay on your loan. All you have to do is pay off your current loan and approach the new lender. However, you should make sure that the prepayment penalty charged for your old auto loan is lower than the benefits offered by refinancing. You can also consider old car finance in Kanpur if your credit score has improved over your loan tenure. When this happens, you may be eligible for a finer loan deal at a lower interest rate with better terms.

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Phone: +919455226781
Address: C-28/68 - A Teliyabag, India, 221002

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