While refinancing a Toyota loan might sound enticing, it does have a few drawbacks. Before you refinance, it’s important to make sure that it’s right for you. Hall Toyota Elizabeth City is outlining the pros and cons to help you weigh your options.
The Pros of Refinancing
When you apply for refinancing, we look at your current financial standing. If yours has improved since you first applied, that can help you get better terms. A lower interest rate means you’ll be paying less for your vehicle, sometimes even thousands of dollars less, which can help you end your loan sooner or have more manageable payments.
The Cons of Refinancing
By applying for a new loan, you’ll add another hard inquiry to your credit, which can temporarily ding your score. There could also be fees associated with refinancing, such as origination or application fees, or a prepayment penalty. If you opt to stretch out your loan, you could also end up paying more for your car overall, and you run the risk of becoming upside down in your loan.
How to Apply
You can refinance your auto loan directly with our team. We’ll sit down to discuss your income and expenses and pull your credit report. We’ll present that information to our circle of lenders and discuss any loan offers with you to see if it’s the right choice. If it’s not, we can discuss other options, such as trading your vehicle in for a new one.
Refinance Your Car Loan in Elizabeth City, NC
Refinancing can be an excellent tool for many car buyers. You can sit down with our team any time to apply for refinancing and see if it’s right for you. Stop by Hall Toyota Elizabeth City to meet with our team today!
