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When To Refinance Your Car Loan

Jun 8, 2017

We've all heard about the benefits of refinancing a home mortgage, but have you ever considered refinancing your car? Here are four reasons why you might want to refinance your car loan and how City Bank can make that happen fast!

When To Refinance Your Auto Loan

We've all heard about the benefits of refinancing a home mortgage, but have you ever considered refinancing your car? Buying a car is often a long, drawn-out process and you may walk away from a dealer with an auto loan that wasn't what you pictured. The good news is that refinancing your auto loan can be a quick and painless process.

Here are four reasons why you might want to refinance your car loan and how City Bank can make that happen fast!

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Interest Rates Have Changed

Depending on when you purchased your vehicle, interest rates may have changed. The range of auto loan interest rates varies according to the lender, with some offering much more favorable rates than others. For example, City Bank has new and refinanced auto loan rates as low as 1.99% APR*.

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Your Credit Score Has Improved

When you apply for an auto loan, lenders price your loan based on your creditworthiness. A higher credit score will most likely mean you will be asked to pay a lower APR on the loan, translating to less out of your pocket each month. Credit scores change frequently, so if your score has improved since you purchased your vehicle, you may be able to qualify for better terms when you refinance your car loan.

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You Want to Change Your Loan Terms

If you are seeking a lower monthly payment on your auto loan, you may be able to achieve this through refinancing for a longer term. Even if your interest rate stays the same, a longer term on your loan will give you some relief with your monthly auto loan payments.

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Remove or Add a Loan Co-Signer

Sometimes a co-signer is necessary for an auto purchase. Having a co-signer on your loan, however, could be a financial burden to the other person. One way to remove a co-signer from an auto loan once your credit improves is to refinance. On the other hand, if your current loan APR is outrageous, you might be able to lower that rate by refinancing and adding a co-signer to your loan.

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Refinance Your Car Loan Today With City Bank

Speak to a City Bank Loan Officer today about refinancing your auto loan. Not only do we have a fast application and approval process, but our loan experts are also dedicated to helping you find the best rates on a new or refinanced auto loan.

This is not a commitment to lend. *APR = Annual Percentage Rate. Rate as of 2/1/17. Rates subject to change without notice. Customers who qualify for our lowest rate have an excellent credit history. Payment example: A new auto loan of $20,000 for 48 months at 1.99% APR will have a monthly payment of $424.96. Subject to credit approval. Advertised rates depend on the individual's credit and financing characteristics, including but not limited to the Amount Financed and term.